article thumbnail

The Silent, Lurking Churn: Activation Rates Less Than 90%

SaaStr

While B2C can be different, for a B2B app, why should it be less? The post The Silent, Lurking Churn: Activation Rates Less Than 90% appeared first on SaaStr. And the simplest way to make that happen is to make sure all your customers go live as soon as possible. At least 90%.

Churn 281
article thumbnail

What is a good SaaS Churn Rate?

Sixteen Ventures

Is 5% a good monthly SaaS Churn Rate? Read on to learn the answer… As a consultant to SaaS and Cloud providers that are looking to grow, I get asked what an acceptable SaaS churn rate is all the time. ” In 2020 I just say, “let’s make churn a non-issue.” Monthly vs. Annual Churn Rates.

Churn 133
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

SaaS Churn: Myths, Benchmarks, and Strategies to Retain More Revenue

FastSpring

In the language of SaaS, I churned. And the experience got me thinking: Was immediate removal of paid features the best chance to keep me from churning? When did I officially count as “churned”? Did they count me as churned on the day I canceled? In part one, we cover benchmarks and common churn formulas.

article thumbnail

Most SaaS Metrics Really Only Work if You Have 75%+ Gross Margins and 100%+ NRR

SaaStr

B2C folks take different positions here. In fact, Very Small Businesses often see 3% a month churn or higher. If your revenue from any stream can go down in a given month or quarter, it’s not recurring. Pass-Through Revenue Simply Doesn’t Count. Is it OK to recognize pass through revenue as “revenue”? It depends.

article thumbnail

CLTV: Important. But Not the North Star Metric It Used To Be.

SaaStr

In B2C and high-churn environments, it’s indeed a critical metric. But in SaaS, in the earlier days, we inherited a lot of our lingo and metrics from B2C web services. So we used their core metrics like “Churn” and “Lifetime value”. So we used their core metrics like “Churn” and “Lifetime value”. But maybe not.

Metrics 203
article thumbnail

How To: Burn the Churn

ProfitWell

On this episode of the ProfitWell Report, Nathan Beckord , Co-Founder and CEO of Foundersuite , wants to know the best ways to combat churn, and we think it's safe to assume Nathan isn't the only one on the churn-solving mission. Failed credit cards account for 20 to 40% of your churn when looking at both B2B and B2C companies.

Churn 92
article thumbnail

Don’t Fear Business Process Change. It’s (Usually) a Good Thing.

SaaStr

A while back I was having a discussion, not quite a debate, but a discourse with an extremely smart VC — far smarter than me — who was relatively new to SaaS, having spent more time in B2C. Like a lot of folks tip-toeing from B2C to SaaS, his first stop was in freemium. Yes, this will help with churn.

Business 267