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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