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Ultimate Guide to Reducing Churn

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Ultimate Guide to Reducing Churn

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B2B> B2C

B2C SaaS is limited to Individuals plans. The ability to offer Team plans is a major advantage of B2B SaaS. 

  • With only ~50% per year retention, these B2C SaaS businesses are effectively an arbitrage on marketing CAC (customer acquisition cost). There’s no long-term business. 
  • Netflix and Peloton are the exception as they have unique retention strategies.
  • Individual plans are a good business only when retention is unusually high (e.g. churn under 2% per month)

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MORE IDEAS ON THIS

Teams > Individuals in SaaS businesses

Teams > Individuals in SaaS businesses

SaaS companies make disproportionately more money with Team plans:

  1. Deal Sizes are bigger
  2. Retention is so much better. Once a team is collaborating in a product, no single user can easily make the decision to leave
  3. Seat Expansion...

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CURATED FROM

CURATED BY

vladimir

Life-long learner. Passionate about leadership, entrepreneurship, philosophy, Buddhism & SF. Founder @deepstash.

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