Category

Series B Key Challenges

Series B Team’s org

Customer Success

Product

Tech

Market Practices

🟠: >3% 🟡: 1%- 3% 🟢: <1%

Critical

⭐

❓

Customer churn refers to the number of customers lost within a given time period.

It can also be measured as Monthly Gross Churn (%):

Market Practices

From Initialized:

🟠 GOOD

>3%

🟡 BETTER

1%-3%

🟢 BEST

<1%

From VC Café:

From Chart Mogul’s SaaS Benchmark Report:

Additional resources

How an $11B SaaS Company Measures Churn by @ttunguz

As I prepared the S-1 analysis for ServiceNow, the third largest public SaaS company in the world, I came across a section in their latest annual report called Key Factors Affecting Our Performance in which the company describes the two ways they evaluate churn. One is common, but another is unusual. Below I’ve quoted their definitions. Upsell rate. To grow our business it is important for us to generate additional sales from existing customers, which we refer to as our upsell rate.

tomtunguz.com

Conversion, retention and churn benchmarks - VC Cafe

The money shot: benchmarks on conversion, retention, and churn for key online business models

www.vccafe.com