Decreasing churn rate is the way to increase revenue in SaaS business. When some of the customers churn, a product or customer success manager starts an investigation, connecting them by email and asking for feedback. Such dunning management can take tons of time, whereas the reason can be just a failed charge. At the early stage of building Statsbot, we came up with a solution to the question of how to automate failed charges in 2 hours. As a result, we reduced churn due to failed charges by nearly 27%. In this post we share our experience and results in churn management.
Decreasing churn rate is the way to increase revenue in SaaS business. When some of the customers churn, a product or customer success manager starts an investigation, connecting them by email and asking for feedback. Such dunning management can take tons of time, whereas the reason can be just a failed charge. At the early stage of building Statsbot, we came up with a solution to the question of how to automate failed charges in 2 hours. As a result, we reduced churn due to failed charges by nearly 27%. In this post we share our experience and results in churn management.
<p>Churn refers to the loss of customers who are subscribed to or use a service. Churn rate is an important component of growth because it is tied to the retention of users of a service. When more users churn, retention rates are lower. When churn rate is high, it is harder to grow a product or service because more new users are required to offset the users who churned from the service. Churn is particularly important in SaaS businesses and other businesses where users pay a recurring subscription fee. These businesses creaet profit from long customer retention spans and a high customer lifetime value. When churn is high, businesses can't capture the full expected lifetime value. These are the best articles on how to reduce churn and improve customer lifetime value. From how to reduce churn, how to generate negative churn, how to use customer success to lower churn rates and hacks to reduce churn, you'll find tactics to improve retention and growth for your business.</p>
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