McKinsey & Company’s research into SaaS companies serving large and mid-enterprise customers shows that companies with annual churn rates of 20% or more see slower growth in annual recurring revenue than others that manage to hold onto their customers.
Shawn Lankton and Brian Stafford from McKinsey & Company joined Gainsight CEO Nick Mehta as they double clicked into the findings of their latest SaaSRadar research.
- How a great product experience can drive customer stickiness.
- Why cross-sell directly impacts churn reduction.
- How Customer Success teams are implementing proactive strategies to fight churn.
The most successful Enterprise SaaS companies know that growing revenue only through new customer acquisition is the less efficient way to scale. Rather, they understand that growing revenue within your existing customer base - through up-sells, cross-sells, and expanded use - is the most profitable way to scale.
In fact, Enterprise SaaS companies that grow revenue - and company valuation - by expanding revenue within their existing customer base also know the key to making this work is to focus on - and operationalize - Customer Success.