CHURN…. the one word that puts fear into most SaaS founders.
So, if you’re facing high churn, what can you do about it?
First, let’s do some calculations (fun!) to put this into perspective…
If you 1000 customers paying $100 per month, and your churn rate was 10%, that equates to a loss of $55,400 ARR.
And what if that was a per-seat price and your users purchased 5 license's on average making your ARPU $500?
That accounts for an annual potential loss of $277k!!
That’s a pretty scary figure. Mostly business losing such kind of huge amount yearly.
Just by reducing that 10% to 5%, you could recover $142k in annual revenues!
One way to tackle this problem is by using the customer retention tool.
Now, you could spend huge resources and megabucks using developers to build the algorithm…
Or you could simply employ a tool from another company that has already done all the hard work for you.
One great tool for this is Churnfree, which was built specifically for SaaS and eCommerce businesses.
Churnfree will help you to retain your customer and try to avoid the cancellation of the membership.
This tool can save up to 46% of churned requests you can calculate by yourself.
There are many other churn analytics and reduction tools on the market, all with their strengths and weaknesses. Still, the most important thing to remember is… to learn from any insights provided by your churn analytics and action them if you want to grow your business!
Have you used a customer retention tool like Churnfree for your SaaS?
if not, you can sign up today at Churnfree for free and see how much money that can save!
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