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.