Everything You Always Wanted to Know About Churn (But Were Afraid to Ask)

Episode 226 | Everything You Always Wanted to Know About Churn (But Were Afraid to Ask)
Date: 2015-03-03
Link: Startups for the Rest of Us
 
Startups for the Rest of UsChurn is the percentage of people that cancel in a given time period.
Revenue churn is a better metric than customer churn.
Involuntary churn is when a customer’s credit card expires.
Higher-priced point customers, while tougher to land, do not churn out as much as lower-priced customers.
You have to fight the first sixty day churn differently than the post sixty day churn.
1.5% is a typical enterprise SaaS monthly churn rate.
The obvious way to reduce churn is to improve your product.
You can get rid of people who aren’t a good fit for your product by just raising prices.
Another way to reduce churn is to get people using your product through onboarding, emails, free concierge services, making your product intuitive, having a guided wizard, and gets them to their minimum path to awesome.
Get metrics into your user’s inbox. It reminds them of the value they are getting out of your app.