How to stop SaaS churn

Customer churn is what separates your self-funded startup from reaching 1M ARR🌱

As I was watching Netflix I wondered, why have I been a Netflix customer for almost 10 years? How did I not churn?

I was doing some research on churn here's what I learned.

Active Churn means to you, as a business:

• You have to spend 5X more money acquiring a new customer to make up for your churn*

• Sacrificed time + money you spent to acquire that customer you just lost

• Brand reputation goes down as the customers that left you are no longer "loyal".

• MRR/ARR goes down, that goes without saying....

✨ What can you do to reduce churn? Talk to customers and be flexible.

• Improve customer service, most importantly, turnaround on requests. If customers are frustrated with you, that leads to churn.

• Send updates and ask for feedback, regularly as you can prevent churn by simply being honest and human about the way you conduct your business.

• Flexible pricing and Pausing subscription: When you offer good value for money that equates to customers not wanting to click that "cancel subscription" button.

My buddies at Abyssale.com ** have a great pause subscription funnel, that's a great way to reduce churn as people can pause and then come back later - here's what it looks like:

You have to understand why people churn, the best way to do that is to analyze why they're churning so don't be shy offering exit interview vouchers and giftcards to those big churning accounts.

*according to research not done by me 👀
** Disclaimer: I am a good friend of the company hence why I know about it