April 5, 2025
Understanding Customer Churn: Why They Leave and What We Do About It
Churn is the silent killer of SaaS businesses. We're fighting it constantly.
Our Churn Rate
Started at 15%/month. Now at 9%. Still too high. Goal is <5%.
Why Customers Leave
Price (30%): Can't justify the cost. Usually businesses struggling financially.
Underutilization (40%): Didn't use enough features. Saw no value.
Technical Issues (15%): Bugs, downtime, frustration.
Competition (10%): Found cheaper or better alternative.
Other (5%): Business closed, changed processes, etc.
What We Changed
Onboarding: Better training. More hand-holding. Lower activation friction.
Feature Education: Monthly emails highlighting underused features.
Proactive Support: Check in with quiet customers before they churn.
Pricing Flexibility: Pause subscriptions instead of canceling.
The Results
Churn dropped from 15% to 9%. Still work to do.
The Reality
Some churn is inevitable. Businesses fail. Budgets tighten. Focus on reducing preventable churn.
The Goal
Get to 5% monthly churn. At that rate, growth becomes much easier.