
I just wanted to share a quick note and remind us all (myself included) that churn is an important part of the process in early-stage product development as you walk your way (slowly) toward product-market fit.
So much so that I've discovered this important truth: Churn is absolutely necessary so that you can learn about what resonates with your customers and take that learning into actionable insights and data that will drive you product design process!
This helps keep things small which is important, especially in the beginning stages of building a new community.
So, this month, I've churned quite a bit. In fact, I've gone from $2,204 in MRR and I've lost 5 customers, bringing the monthly recurring revenue down to ~$1,300 — this could hurt my feelings but I'm not worried because this is, again, just part of the process!

Losing customers isn't always a bad thing, sometimes they drop for very legitimate reasons; that's good because holding too tightly to dissatisfied customers is really, really bad for long-term business-building!
You and I are going to earn new customers and lose them just as quick in the early-stages of product-market fit — getting used to this "rotating door," sotospeak, is important to be able to weather and stomach as a business operator!
Thankfully, my community and my customers are happy, even while some of them aren't re-upping their monthly subscription; I've provided them with meaningful value and it's been worth the price of admission.
Remember: Early sales is not about revenue optimization, it's about learning (via @robfitz and "The Mom Test"!:

In early stage sales, the real goal is learning. Revenue is a side-effect.
So, let's focus on getting back to the basics of early-stage product development: Learning. There's so much that I still have to learn (and listen) to my customer's problems and churn is part of the process of that fundamental learning cycle.
Let's not worry about it so much — of course, it hurts when it happens but it's going to hurt even more when folks leave after you have product-market fit! Then, we have a real problem on our hands...!
Let's keep going. Let's keep building. Let's keep building in the open!
Holy Christ. That would hurt like hell if it happened to me.
Your MRR almost got cut in half.
But I agree, churn is a feature -- an unavoidable part of building a SaaS business -- no such thing as zero or even near-zero churn.
Learn from it and get closer to P-M fit.
Also, do you think your high price point is a hindrance to minimizing churn? I'd expect high-ticket items to be first on the chopping block whenever people try to curb their spending. From my personal experience, anything around the $10-20 price point, people let it slide regardless of whether they're using the app -- they just like to have the option of it being there if/when they decide to use it.
There's also the case of early stage companies would prefer to have only the most enthusiastic customers around to build the products. The people on cruise control won't be able to give the feedback needed to continuously improve.
The "making a few people LOOOOOVE your thing" playbook vs "make something good enough for a lot of people".
exactly. i just need one or two folks to really "get" what i'm making... and then make them really happy.
honestly, it's too early in my process to know, for certain, if the price-points are creating hindrance, as you say.
i'm going to have to keep experimenting.
but, i'm also moving away from that product... and thus, the associated price. so, none of this comes as a big shock.
:)
I also believe that the when a user cancels his subscription that's the perfect moment to capture his feedback, but early stage development is focused on developing the core product and not churn flows, feedback forms, and processing the data to have cancellation insights...
I've built Churndler to help SaaS companies collect user feedback and offer an action to try and retain users while they focus on building their product.
yes, yes, and yes! capturing that feedback will make churn less, hopefully, over time!
Awesome attitude! Keep pushing John and keep inspiring us all. :)
appreciate that friend! just trying to share what i know!