Customer Churn Analysis: Why Analyzing Churn Is So Important - ProfitWell

ProfitWell

There’s no more vital metric for a SaaS company to keep track of than churn : the rate at which customers are leaving your business and taking their subscription dollars elsewhere. What is churn analysis? Customer churn comes in many forms. Analyzing churn helps you reduce it.

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Top Two Reasons for Churn

For Entrepreneurs with David Skok

In working with a number of SaaS portfolio companies, I have found that there are two causes of churn that occur more frequently than any others. Customer Success churn SaaS SaaS churn SaaS customer engagement SaaS customer retention SaaS renewals SaaS retention Startup HelpThey are: Failure to successfully onboard the customer Loss of the champion who drove the purchase Looking at these in order: Failure to successfully onboard It’s easy to understand.

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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.

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The Top 4 Causes of Customer Churn and How to Address Them

Totango

So, instead of always seeking new customers, focus on keeping existing customers happy and preventing churn. Customers can churn for a variety of reasons, and it’s not always clear why they are leaving. The Most Common Causes of Customer Churn.

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Churn Monster: Championless

ChurnZero

Churn Monster #12: Championless. It’s now been a full year since we first launched the churn monster blog series, can you believe it? customer churn risk ) and how that churn monster might be successfully defeated. Churn Monster #1 – Disengaged Customer.

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Churn Monster: Unlucky Customer

ChurnZero

Churn Monster #13: Unlucky Customer. . Well ironically you are in luck, because in honor of this cursed day, we are releasing a new monster in our churn monster series. Good job of turning that unlucky churn monster into a happy, successful customer.

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Annual Plans Reduce Churn Dramatically, Data Finds

ProfitWell

If they don’t feel like they’re getting value, then they’ll churn. Hence why annuals can be instrumental in lowering churn and ramping growth. Well, annuals do reduce churn pretty substantially, because your customers have one purchasing decision per year versus twelve.

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How to Track and Reduce Your Involuntary Churn

Rebilly | Insights Into Subscription Billing

If you’ve been in the subscription business for a while, you’re no stranger to involuntary churn — or the desire to reduce it. Even as a new business owner, you probably know churn is something you’ll deal with regularly, voluntary or not. …And involuntary churn is? (A

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How to Calculate Churn and Retention in SaaS

The SaaS CFO

Guide to Churn and Retention Metrics You’ve often heard that churn is a company killer for SaaS and subscription businesses. The post How to Calculate Churn and Retention in SaaS appeared first on The SaaS CFO. Churn Churn Formula Revenue Retention

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Reducing Churn: ROI-Focused SaaS Strategies for Customer Success

Totango

Fear of customer churn can make you feel you’re standing above a trap door, like the floor could fall away at any moment. We believe in data-driven, proactive customer success that lets you take control of your churn risk and strengthen your customer relationships. Reducing churn in this customer-centered subscription economy means placing the customer at the center of everything you do. In short, customer knowledge conquers churn fear. Why SaaS Customers Churn.

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Combat Churn at Every Stage of the Customer Lifecycle

Chargify

Churn is part and parcel of running a SaaS company. However, you should do your best to keep churn as low as possible, because otherwise, it can do serious damage to your business. So, how can you prevent churn from cutting the customer lifecycle short? What is churn?

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Customer Churn vs Revenue Churn: What's the Difference?

Cobloom

Churn is a really big deal in SaaS. Customer churn, or revenue churn? but which is a "bigger" deal? Today, I'm looking at the differences between these two essential SaaS metrics , and helping you to use them to monitor and improve the growth of your own SaaS startup

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Stopping Inception Churn: The Prospective Customer Success Review

Kellblog

I think for many sales-aggressive enterprise SaaS startups, a fair amount of churn actually happens at inception. 100% of those customers failed in implementation and 100% of them churned. I call this “ inception churn ,” because it’s churn that’s effectively built-in from inception — the customer is sent, along with a partner, on a doomed journey to solve a problem that the system was never designed to solve.

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SaaS Metrics Refresher #3: Churn

Chart Mogul

Today we're tackling a big one: Churn. If we look back to our MRR Movements chart from the previous lesson, you’ll see that there are two ways in which your SaaS revenue can shrink: either through customer downgrades (contraction) or churn: Churn definitions.

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Churn Monster – Acquired Customer

ChurnZero

Churn Monster #11: Acquired Customer. It’s time for us to take a look at another churn monster that causes a lot of risk – an acquired customer. Let’s take a look at a scenario involving an acquired churn monster and see what you can do as a Customer Success Manager in this situation.

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Churn Rate: How High is Too High? A Meta-Analysis of Churn Studies

Cobloom

Customer churn is bad. As any SaaS founder knows, some degree of churn is unavoidable - there'll always be customers that cancel their subscription, because of failed payments, cashflow crises or plain unhappiness. That leads into an obvious question: how much churn is too much?

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Which tactics reduce churn the quickest?

ProfitWell

Reducing churn is one of the biggest things that subscription companies can do to accelerate their growth. But this week, Kim Terry at Subscription Systems has a slight variation on the common question of how to reduce churn. He asks us: What is the quickest way to reduce churn?

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Churn-informed onboarding and engagement strategies

Chart Mogul

Onboarding emails meet churn indicators. Ah, churn. Though the term likely makes you shudder, a customer churning isn’t always as unfortunate as you might think. Churn is a natural part of subscription businesses, but it’s everyone’s goal to make it as low as possible. Churn is calculated after a user has left your service, but what if you could use it for a proactive measures instead of reactive tactics?

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Why Churn Rates Can Spike When Your SaaS Startup Experiences Hypergrowth

Tom Tunguz

In Rethinking Customer Churn Rate & LTV/CAC , Thibaud Clement illuminates a counter-intuitive concept about churn. The faster you increase your growth rate (acceleration rate), the higher the churn rate. In the 50% scenario, churn will be 67% higher. Because the odds of churn decrease with time, particularly for products with monthly billing. There’s a corollary: this means as growth slows, churn decreases, assuming no changes in customer behavior.

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Churn Monster: Ghosted

ChurnZero

Churn Monster #8: Ghosted Customer. As part of our customer churn monster series today, we are going to be talking about ghosting. Follow the links below to learn about the other churn monsters we’ve covered so far and stay tuned for a new churn monster next month.

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Reducing customer churn with data-driven messaging

Vero

Customer churn refers to the customers that stop using your product or service. For SaaS businesses, customer churn is a result of customers canceling or not renewing their subscription. Measuring customer churn allows you to understand how effective your business is at retaining customers, and a low customer churn rate is vital for business growth. Measuring customer churn. Why is it important to calculate customer churn rate? Measuring customer churn.

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Churn Monster: Stuck Customer

ChurnZero

Churn Monster #7: Stuck Customer. We are going to talk about a customer churn risk that all of us in the Customer Success space have experienced – a stuck customer. The question is, how do you go about handling this customer churn risk? Churn Monster #1 – Disengaged Customer.

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What’s the “Cause of Death” in Your Churn Reporting?

Kellblog

In looking at this issue across several companies, I’ve noticed a disturbing trend / missed opportunity in how many SaaS companies classify the reason for customer churn. In churn-speak, “yes, the customer who churned issued a churn notice and chose not to renew.”

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Churn is the Quiet SaaS Killer

Sales Enablement, SaaS and Growth

High SaaS churn is a corollary of poor retention - but it can creep up unannounced, and rather than deal a single fatal blow, it causes death by a thousand small cuts. There’s little point in acquiring new customers if churn is out of control. Annual churn rate.

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Churn Monster: Cheater

ChurnZero

Churn Monster #9: Cheater Customer. It’s time to talk churn monsters again. This month’s customer churn risk is a cheater. So, let’s take a look at scenario involving a cheater and how you might be able to save that customer from switching to a competitor and churning.

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Churn Monster: Manic Customer

ChurnZero

Churn Monster #5: Manic Customer. With Halloween approaching there’s all sorts of spooky things around us, which makes it a perfect time for us to talk – churn monsters! These churn monsters take big bites out of your customer base, which can be very scary. Fight Customer Churn!

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Churn Monster: Abandoned Customer

ChurnZero

Churn Monster #6: Abandoned Customer. We are now halfway through our Churn Monster blog series and have looked at a lot of common customer churn risks and how you can go about defeating them. Way to go on beating this churn monster! Churn Monster #1 – Disengaged Customer.

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What is Net Negative Churn in SaaS

The SaaS CFO

Net negative churn occurs when your expansion revenue from existing customers totals more than your lost revenue from existing customers. The post What is Net Negative Churn in SaaS appeared first on The SaaS CFO. Churn Nathan Latka Net Negative Churn

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Churn Monster: The Victim

ChurnZero

Churn Monster #4: The Victim. Today we are going to take a look at our fourth churn monster – the victim. Let’s a look at a scenario where this churn monster is involved and see how you can go about defeating this customer churn risk. Churn Monster #3 – Slacker Customer.

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How public SaaS companies report churn, and what you can learn from them

The Angel VC

While doing some research for another post I just stumbled on this excellent overview from Pacific Crest on the churn rates of publicly listed SaaS companies. I’ve seen posts with churn benchmarks of public SaaS companies before, but this one is by far the most comprehensive collection I’ve seen and I think it’s very useful. What’s maybe even more interesting than taking a look at the numbers themselves is to see how different companies define churn (or the inverse, retention).

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Customer retention: 5 best practices & 6 strategies for low churn

Inside Intercom

Read on to learn how to create a retention messaging strategy that will turn struggling signups into a series of churn-resistant power users. Some amount of customer churn is natural. Defend against churn early. The seeds of churn are planted the moment you acquire a customer.

Churn Monster: Bad Fit Customer

ChurnZero

Churn Monster #10: Bad Fit Customer . This month we are going to take a look at a churn monster that we’ve all experienced but is different than all the rest, for one very specific reason, that we will get into. Churn Monster #1 – Disengaged Customer. Fight Customer Churn!

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Negative Churn: Reaching the Pinnacle of Customer Success

CloudKettle

Some of the fastest growing, The post Negative Churn: Reaching the Pinnacle of Customer Success appeared first on CloudKettle. SaaS Sales and Marketing B2B churn customer success negative churn Revenue Stack Saas Salesforce subscription revenue

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Survey Says: Want to Reduce Churn? Reach Across the Aisle.

OpenView Labs

If you work in a B2B business—and chances are if you’re reading this article, you do— churn is a word you never seem to be able to escape. Specifically, we learned that companies with well-aligned customer success and product teams experience less churn.

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What’s behind those churn metrics?

Practical Advice on SaaS marketing

Churn is bad for software-as-a-service (SaaS) companies. But knowing there’s a churn problem is one thing; fixing it is something else. To bring down churn, we need to understand what’s behind the numbers. But fixing a churn problem means first diagnosing the cause.

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Why (most) SaaS startups should aim for negative MRR churn

The Angel VC

If you've followed my blog for a while, you know that I have a bit of an obsession with churn. Having significant account churn doesn't necessarily have to be a big problem and can't be avoided completely anyway. MRR churn sucks the blood out of your business though.

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How to Beat the Average Churn Rate for Subscription Service Enterprises

Totango

Most subscription-based enterprises look at “churn rates,” or the percentage of customers who cancel their subscription every year. Average churn rates for subscription services are estimated at around 6-8%. So, one way to become more competitive is to get your churn rate down below this figure. But how can you learn why customers end their subscriptions, and understand the calculations behind your current churn rate? First are subscription churn rates.

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3 Tips to Reduce Churn

Rakam

Churn rate is one of the most important metrics for a SaaS business. While negative churn rate is a dream of every SaaS business, high churn rate is the cause of death. Reducing the churn rate is a relief for the company as lower churn rate leads to higher revenue. In this article, we will share some of the tips we used to reduce our churn rate.

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Building a churn prediction machine, part one

Chart Mogul

We have all the data and insights, so why can't we be better at calculating churn risk? This first part looks at some of the data points and leading indicators of churn we can use to piece together a better prediction tool. Leading and lagging indicators of churn.

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How does contract length impact ARPU and churn?

ProfitWell

Today Vinish Garg from vhite asks a classic question in the subscription world: How does a customer's contract length affect average revenue per user (ARPU) and churn? As to not bury the lede - increasing the guaranteed term of your contract with your customer absolutely lowers churn.

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Eliminate Churn Forever in 5 Simple Steps

Customer Success-Driven Growth

Churn… ya boring. I’m so over talking about churn and if you really understand what Customer Success is all about , you should be, too. Churn is so easy to get rid of… you just have to do five simple things. Once churn is a non-issue, you can focus on growth.

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The SaaS growth ceiling: what happens when churn takes hold

Chart Mogul

As any SaaS business grows, customer churn has the potential to turn from a minor issue to an all-out growth killer. Calculating your growth ceiling can be a useful tool to illustrate the limits of your growth, highlighting the profound effect of churn.

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Which to Prioritize - Churn or Growth?

Tom Tunguz

Growth or churn? Churn or growth? On the other hand, churn is a huge source of friction and raises questions of product market fit. Especially in the early stage, churn is the more important of the two priorities, and when founders ask me which to emphasize that the seed and series A, I’ll always respond churn. Churn is a limiting factor on the business. Like fiction, at some scale, churn will prevent the business from growing.

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