5 Ways to Reduce Your SaaS Churn

Table of contents

Every SaaS (software-as-a-service) business has some churn. But if the churn rate in your business is too high, and your customer acquisition efforts aren’t keeping pace, you could end up running your business into the ground.

Related: 

Because no two SaaS businesses are exactly alike, you will need to take a tailored approach to reducing churn within your business. The following tips and case studies will hopefully provide inspiration for what to do.

1. Find out why your customers are leaving.

If you can identify the exact reasons why your customers are leaving, the next steps will be easier. Alex Turnbull, founder and CEO of , shared on the Kissmetrics blog how this seemingly simple step enabled his company to reduce churn by 71 percent.

Although the company’s techs had recognized that the company app had too many features and bugs that needed to be fixed, and that its onboarding process required some simplifying, they couldn’t immediately identify what was leading to so much churn.

What they discovered was that those who spent 35 seconds in their first session and logged in at a frequency of 0.3 times per day were the ones who quit. Not surprisingly, those who spent more time in their first session and logged in more often stayed longer.

Groove decided to send targeted emails to customers who spent less than two minutes in their initial session, and to those whose usage of the app was declining. Both of these campaigns were immensely successful.

So, what is the difference between the users who are staying, and those who aren’t? Have a look at your metrics to identify differences in their behavior.

2. Optimize your targeting.

Are you certain that you’re appealing to the right kind of prospects with your marketing?

In a SaaS business, making money isn’t just about getting people in the door. Even if you’re onboarding new customers at a rapid rate, if you aren’t retaining them over the long haul, it could be that your offer isn’t the right fit for the people you’re targeting.

Who is your ideal customer? Whom is your software for? Why do those people need it?

Without clear and specific answers to each of these questions, there’s a good chance you will be floundering in your business. Even if you think you have the answers, you may want to dig deeper.

Fundamentally, if there’s a misalignment between your service and the people using it, you’ll need to rethink your marketing strategy.

Also note that: If your churn rate is particularly high, it may be that your app’s core features are leaving something to be desired, and attracting the wrong customer might not be your only problem.

Related: 

3. Examine your foundation.

This goes hand in hand with the last point on optimizing your targeting.

It’s also important to take an honest, detached view of your SaaS offering and identify issues associated with it. This can be a difficult thing to gain perspective on as a business owner, because it’s your baby. You gave birth to the business and the idea.

Nevertheless, try to see things from your customer’s perspective. If you were a user of your app, what wouldn’t you like about it?

Is the software difficult to use? Does it have bugs that need to be ironed out? Is the interface unattractive and difficult to understand? Is your app actually helping your customers save time on important tasks they must complete, or is it adding unnecessary steps to their workflow?

The number one thing that will reduce churn is happy customers. When you have happy customers, their lifetime value will increase, and you can use testimonials and social proof to promote your platform and improve your onboarding.

Take some time to figure out whether or not your product is actually worthwhile and something people want.

4. Increase the frequency of communication.

Clément Delangue, chief marketing officer of Mention, shared on the Kissmetrics blog how his company was able to reduce churn by 22 percent in a single month. 

Part of its action plan was to put a greater emphasis on support by reducing response time. The company decided to handle queries in batches every four hours, and held “support meet product” meetings to improve the product and its support tools. These steps enabled the company to halve the amount of time spent on customer support.

Additionally, although Mention’s staff had a marketing process that converted free trial users, communication stopped with them after users upgraded and became paying subscribers. Mention decided to create additional emails and in-app messages to keep users engaged and to encourage their use of additional features.

Finally, it also organized a webinar to showcase how to use the app’s features, and what real users were using it for.

What this case study demonstrates is that sometimes it isn’t enough to just convert free trial users into paying ones. By communicating more regularly with new customers, you can offer better support and helpful tips on how to best take advantage of your SaaS app.

5. Improve your onboarding process.

Every SaaS business needs to onboard new customers. If your process is clunky and complex, you might be seeing some drop-off in the early part of the customer life cycle.

Earlier, you read about Groove, and you might have noticed how Turnbull identified the company’s onboarding process as one of its potential issues. But for some SaaS businesses, this represents a much larger obstacle. Common onboarding issues include:

  • A lack of explanation. Your prospects don’t understand how to use your product.
  • A lack of clearly identified benefits. Your prospects don’t understand the value of the product.
  • Misunderstanding. Your prospects are getting a false impression of what the product does or how it works.

Magoosh, an education app, was able to increase its conversions by 17 percent by A/B testing its welcome message.

In order to gain a holistic picture of where your onboarding process is falling short, you will need to analyze your metrics. But more often than not, improving your onboarding process simply means making it simpler and faster for your visitors.

Final thoughts

Once again: When you’re looking to and reduce churn, you have to remember that no two businesses are exactly the same. It will be necessary for you to identify where the weaknesses are in your business, and then establish a strategy to tackle them.

Related: 

Churn is also a critical factor in a . If you think you might be interested in selling your business at some point, you will need to get your business on a growth trajectory by reducing churn and increasing profits.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyStudyWriters
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
business
Great job
Customer 452773, February 13th, 2023
10th grade English
very good
Customer 452773, March 26th, 2023
Managerial Accounting & Legal Aspects of Business ACC/543
excellent work
Customer 452773, February 7th, 2024
Nursing
thank you so much
Customer 452749, June 10th, 2021
Criminal Justice
This has been the greatest help while I am recovering from an illness. Thank your team so much.
Customer 452671, May 2nd, 2021
Management
Love this writer!!! Great work
Customer 452597, April 5th, 2021
BUSINESS LAW
excellent job made a 93
Customer 452773, March 22nd, 2023
Human Resources Management (HRM)
excellent, great job
Customer 452773, June 19th, 2023
ACC/543: Managerial Accounting & Legal Aspects Of Business
EXCELLENT JOB
Customer 452773, January 10th, 2024
Nursing
Impressive writing
Customer 452547, February 6th, 2021
DATA565
The support team was late responding , my paper was late because the support team didn't respond in a timely manner. The writer of the paper finally got it right but seems there was a problem getting the revisioin to me.
Customer 452773, April 7th, 2024
Philosophy
Thank you
Customer 452811, February 17th, 2024
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Close

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp