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

  • CRR (Customer Retention Rate) which is equal to 1 – Customer Churn Rate
  • DRR (Dollar Retention Rate) which is equal to 1 – Dollar Churn Rate

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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More SaaS + Software Stats

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

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

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

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

More Growth Strategy Stats

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

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

Three uses for the SaaS Guidelines

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

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

How To Make Pricing A Constant Process In Your Organization

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

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

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

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013