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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

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

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

55% of SaaS companies rate Customer Retention as the key metric to measure

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

The median annual unit churn for SAAS companies was 10% in 2016

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

More Growth Strategy Stats

High-growth companies generate 60% fewer sales opportunities than low-growth companies

56% treat “Existing Customer Renewals” as high priority

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

In 2017, the global adoption rate for biotech soybean amounted to 77 percent.

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling