The 5 Reasons SaaS (Software-as-a-Service) Customers Churn
Are you worried about the amount of people that cancel every month from you SaaS? In this video, I talk about the top 5 reasons you have high churn in your product and how to fix them.
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What’s your churn?
If you don’t know this number, get it.
Better yet, do you know why they’re churning?
When I was building my company Flowtown, we had a 12% monthly churn.
Not good.
That meant that after only 8.3 months we had lost ALL of the customers we had worked so hard to attract & convert?
Just so you know, that makes for a HORRIBLE business.
Your goal should be 8% PER YEAR (for B2B SaaS)!
So if you’re bleeding customers, what do you do?
It comes down to one (or all) of these 5 things to ensure that you’re doing everything you can to keep customers happy and sticking around for the long term.
Now, if you sell to VSB’s (Very Small Businesses), know that your customer’s failure rate (ie. going out of business) – #5 on my list – will definitely impact your growth.
I learned that one from Gail, the CEO of Constant Contact – the first public SaaS company EVER!
Her insights were invaluable…
… and inspired this super simple strategy that can drastically cut down your churn rate.
At the end of the video I share the key tag you should be marking your most “at risk” customers with…
… and how doing so sends a clear signal to your customer success team to step in and save the day!
Once you watch the video, leave a comment and let me know where you’re going to dive in next.
What are do you need to spend some time to help retain paying customers to help re-invest profits into your growth!
Can’t wait to hear from you.
Dan “reducing the churn burn” Martell
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ABOUT DAN MARTELL
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“You can only keep what you give away.” That’s the mantra that’s shaped Dan Martell from a struggling 20-something business owner in the Canadian Maritimes (which is waaay out east) to a successful startup founder who’s raised more than $3 million in venture funding and exited not one… not two… but three tech businesses: Clarity.fm, Spheric and Flowtown.
You can only keep what you give away. That philosophy has led Dan to invest in 33+ early stage startups such as Udemy, Intercom, Unbounce and Foodspotting. It’s also helped him shape the future of Hootsuite as an advisor to the social media tour de force.
An activator, a tech geek, an adrenaline junkie and, yes, a romantic (ask his wife Renee), Dan has recently turned his attention to teaching startups a fundamental, little-discussed lesson that directly impacts their growth: how to scale. You’ll find not only incredible insights in every moment of every talk Dan gives – but also highly actionable takeaways that will propel your business forward. Because Dan gives freely of all that he knows. After all, you can only keep what you give away.
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Great content thank you
A bloody cap in summer? Gzeus. Good info though. Yearly churn can be almost eliminated by yearly subscriptions 🙂
Got a B2B SaaS startup? What are you doing to reduce churn? Understanding there’s 5 reasons people quit will help you discover the answers to fix the issue. Watch now.
Very informative, thanks Dan
Glad it was helpful!
Any recommended resources for on-boarding & activation? Recently launched a product that saw good indications of demand (high sign up conversions with target market, people asking to pay to get off our wait list) but our near total lack of on-boarding process saw it fall a bit flat with our first wave of open beta users. Working very hard on on-boarding & activation now.
Thanks, I’ve seen a couple recommendations for the useronboard ebook. I’ll go pull the trigger now.
Dennis, the best I have online right now is probably this article http://www.danmartell.com/productstory/
That being said, if you haven’t checked out https://www.useronboard.com/ – it’s awesome 🙂
DM