B2B SaaS Churn Rate Benchmarks: A Complete Guidee

In the wake of global inflation, the SaaS business sector has been undergoing an influx of new competition and a constant rise in customer churn. Switching to competitors’ products/services is also rising under the impact of digitization, especially using price comparisons. In this uncertain economic climate, their utmost priority is to keep customers from churning.

Winning new customers is more costly and retaining long-term customers with long-term subscription plans can be much more valuable. Fortunately, today’s companies have b2b SaaS churn rate benchmarks such as robust customer retention strategies and acquiring a new tool to help them keep old users and acquire new ones: Churnfree.

Churnfree uses automated algorithm-driven methods to drill down data of individual customers based on their behavior patterns. Hence, businesses can control their customer base more strongly and control churn. Churnfree helps you evaluate marketing effectiveness, improve your bottom line, and double down on your customer retention strategies.

Let’s dive into everything you need about b2b SaaS churn rate benchmarks. As churn experts at Churnfree—we enable you to understand why your users cancel their subscriptions and assist you in retaining them with personalized onboarding experiences—Collect a pack of tips, b2b benchmarks, and guidance to improve your churn rates.

SaaS Churn Rate: Definition & how to calculate it

Knowing the deep-down definition of churn rate and how it can become subtly uncertain to affect your business strategies is imperative.

First, let’s explain what we mean by “churn rate.”

The churn rate estimates the number of users who cancel their subscriptions within a specific period. It is a beneficial practice to calculate revenue lost from churned users.

SaaS churn rates are critical for a business’s long-term undertakings and overall performance.

Calculating SaaS Churn Rate

SaaS churn rate focuses on the number of users that leave your services monthly or annually. To measure the SaaS churn rate, you can divide the total number of churned users via the total number of users.

For example,

If your business has 1000 customers and 80 ended their subscriptions last month, your customer churn rate is 8%. The SaaS churn rate is also understood as “logo churn.”