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

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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SaaS & Tech Growth Strategy

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For Entrepreneurs.com

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