(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 — This is what you’re losing if your churn is worse than average. Let’s talk about how to fix this. 

Help your customers get successful with what they need right now — 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? 10% churn? How does that affect your earnings?

How much does SaaS churn cost?

• How much you can spend to acquire a customer depends 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 people 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’

Simpson’s Paradox

• A trap when not using cohorts
• Combining two groups — A and B — 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 — when did they sign up?
• Consider plan cohorts — what plan are they using?
• Consider action cohorts — what actions are they taking?

Your Action Items

1. 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
2. Extended Onboarding
   • Steal all of Samuel’s good ideas
3. Services — 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 — and help show them how to be more successful

Share This Recap

[mc_tweet]How To Systematically Fight SaaS Churn And Win[/mc_tweet]

Links to Speaker’s Websites

• Website / Blog: Keepify

Share This Recap

[mc_tweet]How To Systematically Fight SaaS Churn And Win[/mc_tweet]

(This article is part of the MicroConf 2015 Recap. Want to explore more talks from the event? Go back to the Recap Hub)