10 Common Reasons Customers Churn – and What to Do About It  | ClientSuccess - Deepstash
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Why do customers churn?

Why do customers churn?

Price: Asking customers to pay top dollar for a product, especially if they aren’t experiencing the value to make it worth it can quickly wear thin with decision-makers.

Product: many times, customers purchase a product based on what it can do to make their lives easier. If this product isn’t living up to expectations, or if promised features aren’t being delivered, the customer will churn.

Competition: if you’re a SaaS firm, there will always be someone out there delivering the same thing and if their product becomes too appealing, there is often little you can do to pull them back.


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State of business: sometimes, factors at play internally make it impossible for a customer to continue their vendor relationships. However, this reason cuts just as deep as some of the others.

Lack of value: a wide swath of reasons for customer churn falls under ‘lack of value,’ which, at its core, means that a customer isn’t seeing the promised outcomes from your solution.

Access to leadership: If a customer does not feel like they are the most valued customer at your organization, they will often find a vendor who can provide this access.


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Poor experience: Customer churn also relates to their onboarding and implementation experiences. If a customer cites a poor experience, it may be time to re-think your internal customer success strategies.

Need: A customer may find they don’t require your product or services any longer. In this case, it’s helpful to pivot your solution to meet their needs for long-term partnerships better.

No ownership: If a vendor partnership doesn’t have an internal owner at a customer organization, no one can push for a renewal or extension in a contract. In this scenario, the contact will often go dark


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What can you do about it?

CSMs can prevent customer churn by constantly being on the lookout for warning signals and being diligent about proactive engagement. When customers do churn, do diligent follow-up and ask questions to understand better why this termination is occurring.

By tracking why customers churn over time, your team can identify themes and repeating issues that may be contributing to customers leaving and then be proactive in solving them.


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