Nilesh Surana in SaaS, Customer Success Manager, Customer Experience Head of Marketing • CustomerSuccessBox Nov 22, 2017 · 1 min read · +500

What are the customer success parameters to reduce churn?

What are the customer success parameters to reduce churn?

We live in a subscription economy. Everything is available at $ per month. For SaaS businesses, 80%-95% of the LTV is locked in the recurring revenue. So, it is important to understand the type of churn which your business is facing. There are three types of customer churn:

  • Account Churn: Certain accounts are rejecting the product.  If you are seeing Account churn, but User and Revenue growth, it is likely that a certain type of customers are rejecting the product.

  • User Churn: The product usage is on the decline.  User churn can be a direct consequence of Account churn. However, if this is happening despite Account growth, it requires in-depth analysis.

  • Revenue Churn: Loss of recurring revenue due to account / user churn.  There might be one exception where you’ll notice revenue churn despite Account and User growth, e.g., when the price per user gets reduced.


Now that we have classified the types of churn, following are the strategies to reduce churn.

  • Analyze Data: Collect data to analyze churn

  • Customer Interviews: Conduct phone or email interviews to understand ‘why’

  • Segmenting Customer Churn: categorize each churn based on the reasons for churning - bad fit, missing functionality, pricing, etc. This will give you actionable trends.

  • Measure engagement: Measure and act on customer engagement to influence customers to stay

  • Value Reminder: Remind customers of the reason why they chose your product in the first place and the value you provide.

You can also download the e-book: How to reduce churn in 90 days.


Nilesh Surana Nov 27, 2017 · #3

#2 Yes Rebecca. For example if you had account churn but you kept focusing on individual usage numbers. You would keep losing customers without realizing that the usage was never the problem.

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Nilesh Surana Nov 22, 2017 · #1

Thank you for the share, @Don Philpott☘️

+2 +2