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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If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey