$66,022.73 — This is what you’re losing if your churn is worse than average. Let’s talk about how to fix this.
Help your customers get successful with what they need right now — and help show them how to be more successful
What is SaaS Churn?
- If you have 100 customers in April and lose 10 of them, you have 10% Churn
- Start with 500 users paying $59/month growing 12% per month
- 5% churn? 10% churn? How does that affect your earnings?
How much does SaaS churn cost?
- How much you can spend to acquire a customer depends on churn.
- Churn represents someone’s loss of faith in your business
- Coming to them at that point isn’t very productive
- What we want to do is make these people successful at the start of their engagement with your business
- Analyzing Subscription Revenue. Three things to consider:
- Establish a habit of a financial relationship with people
- You want events to make sure that people are getting onboarded
- You want to track things that help get people more engaged with your application
- You also want to track happiness
- …but as a proxy
- …so ‘how recently have they’ or ‘how frequently do they’
- …but as a proxy
- A trap when not using cohorts
- Combining two groups — A and B — can give false information
- You need to look at this information broken out into groups to give yourself a better perspective on what works well.
- Consider calender cohorts — when did they sign up?
- Consider plan cohorts — what plan are they using?
- Consider action cohorts — what actions are they taking?
Your Action Items
- Automate behavioral communication by focusing on high-value people
- Send them ideas, send them feedback, send them reactivation emails
- Help tell the customer what pitfalls to avoid
- Extended Onboarding
- Services — Outreach, Products, and Training
- Provide value in different forms so that your audience can pick what works for them
- When Upgrade Revenue > (Downgrade Revenue + Revenue Churn), you’re losing money
- When you see customers successful, it makes you want to make your customers more successful
- Help your customers get successful with what they need right now — and help show them how to be more successful
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Links to Speaker’s Websites
- Website / Blog: Keepify