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%.
More SaaS + Software Stats
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.