6 Proven Strategies to Reduce Churn - Deepstash

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In this guide, we’re going to go over six strategies to reduce churn, with real-life examples from SaaS companies that have successfully done it.


6 Proven Strategies to Reduce Churn

6 Proven Strategies to Reduce Churn



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Churn can most basically be defined as resources lost in a given period of time. Typically it’s referring to users or revenue lost and is usually represented with either a percentage or dollar amount.

For example, if you had a 5% monthly user churn rate, that means each month 5% of your cus...

Calculating Customer Churn: The Formula

[Leaving Customers/ Total customers]×100

  • User churn is the number of customers you’re losing in a given timeframe (typically per month or year).
  • Revenue churn, which is arguably even more important, is the amount of revenue you’re losing in a given time frame due to downgrades or cancellations.

Here are a few signs/red flags that you might have a churn problem:

  • Your churn is outpacing new customers.
  • LTV is shrinking: The longer your customers stay with you, the higher the lifetime value (LTV) of your average customer should be.
  • Your churn rat...

Ask your customers why they are cancelling. Make sure you customize the cancellation reasons in your survey based on your product.

After having a cancellation reasons form, you can break down the reasons and segregate the customer feedback.

If trying to find out why they are cancellin...

A great onboarding process helps companies:

  • Give customers the best first experience of the product possible, by guiding them through it.
  • Keep customers informed throughout the process with a clear line of communication.
  • Enable customers to learn more about how to use t...

You can build Customer(or Brand) Loyalty by:

  • Being honest and transparent
  • Celebrating your customers, starting with the high-value segment.

Someone who just enjoys your product might leave if another company releases a similar product at a lower price. Their main co...

To get more clarity, look at your churn by customer segments or cohorts.

Customer segments are the different ways you group customers together. It could be by their plan level, location, coupon vs. full price, or any other category.

Listening to your customers (and acting on their feedback) directly impacts churn.

The problem some companies run into is feedback can come in from all over the place (social media, support desk, personal conversations, etc.) That makes it tough to keep track of.

Brands are vi...

Typically, one of two things happens when your customer’s payment fails:

  • They eventually realize it and make their payment
  • They go ghost and you lose out on the money.

Even if the customer does update their payment info later, you’re still missing out on revenue.

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Effective customer onboarding is vital in a SaaS business as it helps to educate customers on using the product and help them see the value. An onboarding checklist can help to set customers up for success.



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