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High Customer Churn Cancer for SaaS Business

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Most SaaS Owners are aware of the high customer churn problem with that 1 reason they are losing thousands of $ annually, which is destroying their businesses.

High churn is a problem for every business. Because Customers leave their service because of many reasons, popular ones are

  • High Price
  • Low Quality
  • Poor Service
  • No needed further
  • Lack of tool knowledge
  • Complicated process
  • Extra charges

First, let’s do some calculations (fun!) to put this into perspective…

If you 1000 customers paying $100 per month, and your churn rate is 10%, that equates to a loss of $55,400 ARR.

And what if that was a per-seat price and your users purchased 5 license's on average, making your ARPU $500?

That accounts for an annual potential loss of $277k!!

That’s a pretty scary figure, right?

By reducing that 10% to 5%, you could recover $142k in annual revenues!

Now you got the point that SaaS business owners face a lot of loss due to this reason. If you want to grow your business, you first need to identify the root cause of your customer leaving your service. If you improve then it will help you out more. After this, you can use a customer retention tool to help you rest your customer's Churnfree.

This tool starts working when the user clicks on the cancellation button. It will start offering them the offers you mention; if any of the offers users get and still cancel the subscription, then it will get why you're leaving.

In this way, you have the reason why you left your product, or else you win the customer again. Enjoy your recursive revenue.

Churnfree can save up to 46% of churned requests.

Try free today for your Product growth!

No card is required to sign up!

Top comments (1)

fitteyes profile image
Amelia • Edited

An interesting article. The way you focused on startup founder pitch decks as a segment and then changed the pricing (monthly to annual) to achieve a lower 12-month churn is admirable.

It appears that the value was clearly realized in the first year of fundraising because it isn't a one-and-done process, and they intend to use it moving forward for additional rounds.

Good work.
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