Feb 13, 2020 Admin

Tech Buzz

Saas Churn Rate: Expert's Know It All Guide

One Disaster for Your Business Would Face-Customer Churn!

Well, in SaaS, churn rate can be interpreted as the rate in which SaaS customers cancel their recurring revenue subscriptions. This is actually the ultimate failure for any SaaS solution. Hopefully, you are not one of the founders who simply calculate the churn in a way that makes their firm look the best.  

Well, according to the SaaS development experts it is important for any organization to find out the exact reasons for the churn and work on them. 

So, let’s discuss the major reasons to understand why customers churn. 

Why Customers Churn?

According to the developers at A3logics, there are a lot of reasons why customers churn and there is no assurance that a customer would stick to your services all the while. Getting rid of the churn can never be the reality, but reducing it is always the option. 

Below the professionals, share a few reasons why actually customers churn. Continue reading and find out if any of these could be an issue with your customers. 


You are in the business for long enough to understand the two pillars that hold any business are “Quality” and “Affordability.” It is important that your customers feel your service is worth their investment. If they find your services fit in their budget, there are high chances that you have hit the bull’s eye.


If your services go out of trends, you go out of the competition. It is very important for your business to sustain and avoid any churns, the services are upgraded to match the latest technology. If you serve better than others, surely you are winning the game. 

Exactly What They Want

It is important that the product you are selling proves itself on the “Quality Standards” too. You need to be sure if there are a lot of negative reviews on the product, you need to do something. This is one major reason for the churn. 

No Customer Support


Your customer tried reaching you and no one was available. This is the worst nightmare and the most popular reason for the churns. Have a reliable 24*7 customer support team that would help you retain your customers. 

Competitor’s Lay the Bait 

There could be a possibility that your customers switch to the competition’s website because they have studied you better and know your follies. Make sure you find the loopholes and fill them asap. You cannot afford to lose your customers just due to ignorance.  

Business Maybe Acquired

When the businesses are acquired by a new team, things get tougher. A lot of loyal customers start fleeing the market as they find it difficult to adjust to the new possibilities or updates. It is important for the new businessmen to hold the customers, understand their needs before making any big leap. 

Also Read: What Does the Future of the SaaS Industry Look Like in 2019?

Seriously! A few very obvious reasons why someone would leave the services they have adored for so long. To help your business fight the churn that earns a bad impact, here the professionals share some strategies that can help you move forward. 

1. It’s Official

Let your team know the stats. Nothing can work more wonderful than a team that is dedicated to retaining the customers. With the improvement in the stats, the team would be motivated to bring better results that would take your business to new heights. And definitely bring down the churn rates. 

Thus, you meet the objectives and get your business some extra revenue with a little sharing!

2. Track the Engagement

With a lot of CRM solutions mushrooming in recent times, the role of customer reviews and customer relationships have become more significant. It is important to track customer engagement to check what aspects work for you and what strategies fail. With a clear record of what’s working and what isn’t working, it would be easier for you to track the churn rate. 

Always! We Repeat ALWAYS track engagements be ready to respond to your customers to ensure they feel heard. 

3. Prospect to Impress

Free trials are fun!

But your customer wants to know what’s after that. Before your client’s sign-up for the free trials, they need affirmations and want to look at what the paid version has to offer. No business can avoid the churns here, because not all the customers are willing to buy the paid version. They are happier experimenting with the free trial and then moving to the other platform. If you want to hold your customers, show them something promising. 

4. Turn to an Adoption Agency

Do not let the newbies handle your customers. According to a survey, a lot of organizations do not lose clientele because of poor services, but because of poor client handling. So, do not risk your client handling process with the untrained team. Train your team to ensure the churn goes down and gets you the best results.   

5. Categorize Them for Easy Analysis

It is important to lower your churn rate to understand your customers well. And to understand your customers, you would need to analyze their feedback. To analyze their feedback it’s better you categorize them on the basis of demography or interest. This would help you come up with great results that too without being messed up. Thus, save churn rates by understanding what is troubling your customers the most.  

6. Act on Customer Engagement

Your business - no matter retail & ecommerce, banking & finance or any other one would keep growing until you keep going.

So, once you are done with the analysis and have reports in your hands, do not delay the mitigation steps. Look for some interesting solutions that can add some interesting perks for the customers. You can provide them with loyalty points or extra benefits to ensure they do not jump to other websites.  

Winding It Up!

So, a lot of you may have read that 5% churn rate is acceptable. Why to accept any churns when you can avoid it with simple steps. If you want help with software consultations, you can always reach us and we’ll come up with the best solutions on the internet. 

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