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

SaaS + Software
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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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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

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

Negative Churn and Expansion Revenue

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

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

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

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

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

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

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The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

They may forget what you said, but they will never forget how you made them feel.

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

Cloud-hosted applications have a 99% uptime

A 1% increase in pricing strategy yields an average 11% increase in profit

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

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

At Twitter, 10 percent of tech roles are staffed by women

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

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