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3 Tips to Reduce Churn

Churn rate is one of the most important metrics for a SaaS business. While negative churn rate is a dream of every SaaS business, high churn rate is the cause of death.

Reducing the churn rate is a relief for the company as lower churn rate leads to higher revenue. In this article, we will share some of the tips we used to reduce our churn rate.

No Self Cancellation

Most of the SaaS businesses allow their users to cancel their subscriptions with just a few clicks. Your users will fill some online form with multiple choices about the reason for the cancellation and then it’s done. Unsubscribed!!

While the cancellation forms are created with the purpose of learning “why” user wants to cancel his or her subscription, you can hardly get any useful insights from the forms. Most of the time your users will just quickly fill the form to cancel their subscription, but we don’t think that you can get good feedback from this.

Instead of using self-cancellation you can let your customers reach out to you via email or live support to cancel their account. This way you can ask your customers the reason for cancellation and “how you can serve them better?” In this case, you can learn why your customers want to unsubscribe.

You will see some customers wants to cancel because they think you don’t have the features they want. You will realise that you have these features, but your customer didn’t know it exists. Maybe your customer wants to cancel because you lack a particular feature and he has no idea that you will release it in the next month. You can also offer discounts to prevent your customers from cancelling.

If your customers can not cancel their account without reaching to your company, you can communicate with them before they cancel. This way you will get better feedback, and also you could prevent some of the cancellations.

Educate Your Users

If your product is not understood easily by your users chances are high that some of your users will churn because they won’t be able to find the features they are looking for. You need to educate your customers so that they understand everything about your product or service. You can enlighten your users by arranging webinars, expanding the live support, creating a newsletter and so on.

Create a Roadmap

We have seen that most of our users churn because they are looking for a specific feature that we currently don’t provide but will be available in the following weeks. If your customers churn because they are not aware that the feature they want is on your roadmap, then you could prevent your customers to leave by providing a short and long-term roadmap.


Can Ozuysal