With SaaS businesses, the bulk of customer revenue occurs in the future, and thus ensuring you retain your existing customers is of paramount importance.– Alan Gleeson
Churn. Just the word itself strikes fear into the hearts of SaaS founders young and old, but the reality is even worse. Customer churn can be devastating, and when left unaddressed – it can bankrupt your company in a matter of months.
If you want to learn more about SaaS churn, why it matters and how to stop it – these 6 articles will get you started!
ProfitWell‘s Patrick Campbell took to the blog this past October to share his breakdown of the average SaaS churn rates and what qualifies as a “good” churn rate. Admitting that a good churn rate for one company might be terrible for another, Campbell explains the importance of knowing what a good churn rate is for your company, and how to determine your churn number. Churn rates for subscription companies vary widely across both external dimensions and internal dimensions, but thanks to Campbell, finding your company’s “good” churn number is easy!
Improving your average churn rate is a slow and steady process. Stick to the basics—track your churn rate over time, focus on doing better than yesterday, and leverage the right tools whenever possible.– Patrick Campbell
Taking this “how high is too high?” discussion further, CoBloom‘s Ryan Law constructed a brilliant meta-analysis of SaaS churn rates. Expounding on the subjects in the article above as well as breaking new ground of its own, Law and Campbell’s pieces pair perfectly into a fantastically thorough joint-presentation.
As your product continues development and your business model matures, you should get better and better at closing and retaining good fit customers. In other words, your churn rate should improve over time.– Ryan Law
Thomas Griffin of aptly-named Churn Buster feels that building a churn-conscious community is essential to reducing the damage caused by churn. Organized into 5 tips, Griffin spares no detail when outlining what it really takes to achieve this. Start building your brand community today!
The more you promote your community, the more customers you can prevent from churning.– Thomas Griffin
The Close blog was the perfect platform for Steli Efti to share his “no-BS” approach to handling churn. Though not a short read by any means, this fantastic piece justifies its length with educational videos, slides, charts and more. Steli Efti is no amateur when it comes to handling SaaS churn, and after reading this – you won’t be either!
In order to succeed as a startup, however, you have to do what hurts. And in SaaS, churn is the most crucial problem you need to solve—not only to stay afloat, but to actually grow.– Steli Efti
So now you understand what churn is, how to measure it, and what a “good” churn rate is. But how do you reduce your current churn rate and increase customer retention? That’s where London-based B2B and Tech Marketing Consultant Alan Gleeson comes in with his 10 tips for hitting SaaS churn where it hurts most. Though the somewhat daunting 12-minute read time may scare some away, this article is worth every second. Dive in and enjoy!
SaaS businesses are pretty unique, and the line between success and failure is razor thin. Understanding the key drivers of churn, and seeking to mitigate against them should be everyone’s priority.– Alan Gleeson
Closing out this week’s roundup is UserIQ‘s Practical Guide to SaaS Churn. Penned by an anonymous writer, this article is divided into 7 categories, allowing the author to neatly break down each aspect of churn in an easily digestible manner. Though lacking visual aids, the writer’s ability to keep readers engaged with text alone is strong enough to make this piece one of our favorites on the topic. Give it a read!
Every department influences churn or is influenced by it in one way or another.– UserIQ
Thanks so much for joining us for another SaaS roundup. We hope to see you here again next Monday!