Transcript: Customer churn sucks but doesn’t have to suck the life out of your SaaS business.
Hi, I’m Justin Talerico with Married2Growth and this is my perspective on my number one indicator of SaaS capital efficiency—customer churn.
Unlike revenue churn, customer churn is binary. They’re either a customer or they’re not. And when they’re not, you’ve spread your CAC across less revenue, reduced your lifetime value and hurt your capital efficiency.
How much customer churn you can overcome depends on revenue retention, but all customer churn will be put under a diligence microscope to understand WHY THEY LEFT. Banks, investors and buyers will want an answer to that question for each and every churned customer. So be ready.
For my seven reasons customer churn sucks (and much more), please read or listen to my article on Married2Growth.