Why is it so important to reduce the Churn Rate?
In online software sales businesses, the largest investment is in developing the application and generating customers. Companies put most of their efforts into this aspect and must try to keep their customers, for whom bahrain phone number library have previously invested in acquiring them. The Churn Rate is one of the most important metrics for SaaS companies . The data it provides is the percentage of people who are leaving our company. The Churn Rate of income can also be calculated , providing data on the percentage of income left behind by those customers who have abandoned our company.
Reasons for a high Churn Rate
This metric is one of the easiest to calculate, as it only depends on one factor: customer churn. So, we need to understand the reasons why customers leave our software.
The product does not meet the promise: Generating expectations that are higher than reality can lead to losing customers. Sell what you have, it is better to surprise than to disappoint.
Lack of customer service : If you are unable to solve your problem when your customers ask for help, you will make them unhappy and they will look for better options. Get exceptional customer service and support.
Lack of adaptation to the client: The client's needs are not always the same, they change over time. Both external factors and the internal values of our application modify these needs.
There is a chance that we are also losing customers because our product has already met all their needs . Still, this is still a problem as we can increase our product features to increase our customers’ LTV .
What is considered a high Churn Rate?
There is no valid or completely correct answer to this question. Each SaaS application is unique and we must put ourselves in the situation of the service we offer. If we look at it from the point of view of SaaS applications, we must always compare ourselves with ourselves and try to improve what we have in the company. If we want to get some data that can serve as a reference, we would say that an optimal Churn Rate would be between 5-7%.
