Stop losing customers

You are losing customers 😫

And you don't even know

There are two types of churn

* Voluntary churn

* Involuntary churn 

What is Involuntary churn in SaaS? 🤷‍♂️

Most of the time, the customer is out of business 💼

After scaling to 1000+ customers, we had involuntary churn

The startup and SMB customers we serve…

Just couldn't continue ❌

They had to shut down 🛑

Other times, there were payment errors 💳

Usually, that's also an out-of-business reason ⚠️

What can you do with involuntary churn in SaaS? 🤷‍♂️

Stay on top of your reporting to executives 📊

And make sure that while…

Churn happens 

Caveat that as…

Involuntary Churn happens

And what can the company do to recover lost revenue…

What are the most common reasons for voluntary churn in SaaS? 🤷‍♂️

Common root cause churn reasons include:

• Product dissatisfaction 

• Budget cuts 

• Switching to competitors

We had these types of churn too

Budget cut is very common 

When your product cannot produce the ROI back

And without informing the buyer

…sooner or later, there will be a cutback

But… ❗️

Don't wait until we find out the root cause 🕵️‍♂️

Isn't it too late? ⏰

I am not talking about predicting churn 🔮

But being proactive about reducing churn 

Conduct at-risk analysis and report updates on the health of customers 

Common at-risk symptoms:

🛑 Decrease in engagement 📉

🛑 Ghosting from messages 👻

🛑 Loss of champion 🏆

🛑 Poor customer feedback 😔

🛑 Missing product experience ❌

In the age of SaaS today…

With so many options and competitors 

If a SaaS is falling behind on any of this 

It's easier now to switch 

Making sure the voice of customers is heard

By aggregating feedback 

Turning them into insights and initiatives 

That can be addressed 

Product leaders and Customer Success leaders 

Need to quantify the impact of at-risk customers 

So they can take action 

To preserve revenue

This means taking steps like:

Educating customers with webinars and coaching 🎓

Offering support hours ⏰

Setting proper expectations 🎯

Working with the Product team on improvement 🛠️

Building new champion relationships across the board 🤝

Read more... I wrote about Retention in Product Led Growth

1. How we increased retention by activating +45% of our PLG customers?

2. What is a good vs. great retention benchmark?

3. Who owns retention?

4. Five ways to improve retention in PLG

5. Want more upsells? Improve retention

I write daily*** about my learning on launching and leading PLG. Feel free to subscribe.

I am Gary Yau Chan. 3x Head of Growth. Product Growth specialist. 26x hackathon winner. I write about #PLG and #BuildInPublic. Please follow me on LinkedIn, or read about what you can hire me for on my Notion page.