Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

From For Entrepreneurs.com
Quote in SaaS & Tech Growth Strategy

That way we could put our best customer service reps to work in an effort to save the situation. It turns out that we can do that by instrumenting our SaaS applications and tracking whether our users are engaged with the key sticky features of the product. Different features will deserve different scores. For example if you were Facebook, you might score someone who uploaded a picture as far more engaged (and therefore less likely to churn), than someone who simply logged in and viewed one page.

Similarly if you sold your SaaS product to a 100 person department, and only 10 people were using it, you would score that differently to 90 people using it. So the recommendation is that you create a Customer Engagement Score, based on allocating points for the particular features used. Allocate more points for the features you believe are most sticky. (Later on you can go back and look at the customers who actually churned, and validate that you picked the right features as a predictor of who would churn.) And separately score how many users are engaged with specific scores.

More SaaS + Software Stats

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

54% treat upselling and add-on sales as high priority

More SaaS & Tech Growth Strategy Stats

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

How to Reduce Churn

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

In 2018, the global tech spending is forecast to amount to 3,212 billion U.S. dollars.

80% of venture capital investments take place in the enterprise

47% of millennials want to work at diverse companies, according to a recent study.

In 2017, the world invested around 3.4 billion U.S. dollars in small hydropower technologies, down from 3.9 billion U.S. dollars in 2016.

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years