Top Two Reasons for Churn
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. They are:
- Failure to successfully onboard the customer
- Loss of the champion who drove
Demystifying Churn: Measuring and Benchmarking this Metric
As every SaaS entrepreneur knows, churn is one of the single most important metrics in determining the day to day health of the business. Acquiring new customers is time and capital intensive, and this growth is meaningless if those customers …
Managing Customer Success to Reduce Churn
The health of a SaaS business is directly tied to its ability to retain its customers and prevent churn. To do this, they have to ensure that their customers are happy. That means making sure they get the promised business …
SaaS Metrics 2.0 – A Guide to Measuring and Improving what Matters
“If you cannot measure it, you cannot improve it” – Lord Kelvin
This article is a comprehensive and detailed look at the key metrics that are needed to understand and optimize a SaaS business. It is a completely updated rewrite …
Unlocking the Path to Negative Churn
Summary: Illustrates graphically why churn is a huge problem as a SaaS company gets larger. It also looks at a very surprising factor that can massively accelerate SaaS growth: negative churn. (This article is applicable to any recurring revenue …
Measure Customer Engagement: Increase Conversion and Lower Churn
The goal of a SaaS CEO should be to increase the profit they make from each customer (LTV), and lower the costs in sales and marketing that it takes to acquire each customer (CAC). Measuring Customer Engagement is a key …
Pacific Crest’s 2011 SaaS Survey
Pacific Crest, an investment banking firm with a strong focus on SaaS, has surveyed a 70 SaaS companies with very interesting results. There is some great data on topics such as growth rates, cost of customer acquisition, churn/retention, expense models, …
