(This article is part of the MicroConf 2015 Recap. Want to explore more talks from the event? Go back to the Recap Hub)
Main Concept
$66,022.73 β This is what you’re losing if your churn is worse than average. Let’s talk about how to fix this.Β
Help your customers get successful with what they need right now β and help show them how to be more successful
Talk Recap
What is SaaS Churn?
- If you have 100 customers in April and lose 10 of them, you have 10% Churn
- Start with 500 users paying $59/month growing 12% per month
- 5% churn?Β 10% churn? How does that affect your earnings?
How much does SaaS churn cost?
- How much youΒ can spend to acquire a customer dependsΒ on churn.
Customer Engagement
- Churn represents someone’s loss of faith in your business
- Coming to them at that point isn’t very productive
- What we want to do is make these people successful at the start of their engagement with your business
Customer Engagement
- Analyzing Subscription Revenue. Three things to consider:
- Recency
- Frequency
- Monetary
- Establish a habit of a financial relationship with people
Activation Maps
- You want events to make sure that people are getting onboarded
- You want to track things that help get peopleΒ more engaged with your application
- You also want to track happiness
- …but as a proxy
- …so ‘how recently have they’ or ‘how frequently do they’
- …but as a proxy
Simpson’s Paradox
- A trap when not using cohorts
- Combining two groups β A and B β can give false information
- You need to look at this information broken out into groups to give yourself a better perspective on what works well.
Cohorts!
- Consider calender cohorts β when did they sign up?
- Consider plan cohorts β what plan are they using?
- Consider action cohorts β what actions are they taking?
Your Action Items
- Automate behavioral communication by focusing on high-value people
- Send them ideas, send them feedback, send them reactivation emails
- Help tell the customer what pitfalls to avoid
- Extended Onboarding
- Steal all of Samuel’s good ideas
- Services β Outreach, Products, and Training
- Provide value in different forms so that your audience can pick what works for them
Negative Churn
- When Upgrade Revenue > (Downgrade Revenue + Revenue Churn), you’re losing money
Customer Engagement
- When you see customers successful, it makes you want to make your customers more successful
- Help your customers get successful with what they need right now β and help show them how to be more successful
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Links to Speaker’s Websites
- Website / Blog:Β Keepify
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(This article is part of the MicroConf 2015 Recap. Want to explore more talks from the event? Go back to the Recap Hub)