The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

From For Entrepreneurs.com
Statistic in SaaS & Tech Growth Strategy

To study churn, we need to look at a particular group of customers that signed up in a particular time period. We refer to these groups as cohorts. So you might have a Jan 2014 cohort which is comprised of all the customers that signed up in Jan 2014. We will then want to track how many customers we retain, and how the revenue for each cohort evolves over time. Here is a graph that shows what happens to the number of customers in a particular cohort over several years with three different monthly Customer Churn Rates.

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

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

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More SaaS & Tech Growth Strategy Stats

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