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

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There are two other terms which you might see used, which are the counterparts to churn:

So a business that has a negative churn rate, will have a Dollar Retention Rate of greater than 100%. These are some of the very best SaaS business out there. Examples of DRR greater than 100% include: Zendesk: 123%, NewRelic 115%, Box: 130%, Rally Software 127%.

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In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

More than 1/2 of SAAS companies increased their spending on customer retention last year

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

Customer Segmentation analysis will help point out which are your most profitable segments

Cloud-hosted applications have a 99% uptime

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

80% of venture capital investments take place in the enterprise

SaaS organizations are now operating in over 100 countries

More SaaS & Tech Growth Strategy Stats

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

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

The venture-backed companies that were acquired most often had a 7 percent share of female execs, as opposed to 3 percent at unsuccessful (unacquired) firms

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

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

Internet Sales strategies have a significantly lower CAC of just $0.42

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

The fastest growing SaaS companies raise an average of $9.5M in Series A funding