User Churn: Calculating and OptimizingPrice Intelligently’s SaaS Metric Mondays

Price Intelligently

SaaS User Churn

Let’s talk about User ChurnYour SaaS company’s silent killer.

Price Intelligently

SaaS User Churn

User = Someone who uses/subscribes to

your product

Churn = A measure of attrition or loss

SaaS MRR ChurnPrice Intelligently

User Churn =The occurrence of a customer losing

access to your service and or the subscription running out.

Want To See What Your User Churn Is Right Now?

Get your free ProfitWell account – 1-click SaaS Metrics >>

Price Intelligently

SaaS User Churn

SaaS User Churn

Here’s How You Breakdown User Churn Visually(image taken from ProfitWell – free SaaS Metrics dashboard)

Price Intelligently

All that stuff is great but…why should you even care?

Price Intelligently

SaaS User Churn

“Not tracking User Churn is like – trying to eat a bowl of

cheerios with a pitchfork; you won’t retain much”

Price Intelligently

SaaS User Churn

More specifically…

Understanding your User Churn can help

Identify which aspect of your product is causing

churn

ProductImprove projections and

financial planning models to account for lost users

FinanceMarketingIdentify channels

bringing in crappy/happy

customers

See the breakdown of your User Churn with ProfitWell >>

Price Intelligently

SaaS User Churn

Let’s go even deeper and calculate User Churn like a #boss

Price Intelligently

SaaS User Churn

User Churn is all about the folks leaving your business

User Churn Criteria Breakdown

Items to Include Items to Exclude

Churned Users that cancelled

Cancelled users who have not churned

Expired subscriptions Delinquent Accounts

Price Intelligently

SaaS User Churn

Price Intelligently

SaaS User Churn

Total Churned users (via cancellations)

for the month

Total Expired Subscriptions for

the month

The calculation breakdownEQUATION

Calculating User Churn is very simple and straightforward. Simply take the SUM of the total churned users (who cancelled) + the total expired subscriptions in a given

month

Once you know how to calculate like a #boss you can optimize like an even bigger #SaaS superstar

Price Intelligently

SaaS User Churn

Here’s how to eliminate as much User Churn as possible:

1. Fix your pricing

2. Churn loss surveys & conversations

3. Increase your active users

Price Intelligently

SaaS User Churn

Improper pricing can heavily influence your User churn, especially if you don’t have a proper value metric or your

customers just don’t match your product’s value with your price.

Key Optimization #1Fix Your Pricing Strategy

Price Intelligently

SaaS User Churn

You’re likely missing the true reasons folks are leaving your product. Running proper customer loss surveys that force respondents to

choose the biggest reason(s) their leaving will help you identify these reasons real quick.

Key Optimization #2Run Churn Loss Surveys

Price Intelligently

SaaS User Churn

This is much easier said than done, but a lot of active cancellations come from individuals who don’t get hooked

into habitually using your product. Obsess over active users.

Key Optimization #3Increase your active users

Price Intelligently

SaaS User Churn

Boom. You’re now a User Churn rock star*.

*…or just a normal SaaS aficionado that’s more informed and hopefully learned something useful.

Price Intelligently

SaaS User Churn

Want real time SaaS Metrics (including User Churn)?

Know and understand your SaaS Metrics with ProfitWell for free - the

most accurate metrics on the market.

Click here to get your free ProfitWell account >>

Price Intelligently

SaaS User Churn