> As developers, it is our challenge to discover and address the causes of the churn as best as we can, but understand that it's natural and unavoidable.
I disagree. I believe if whats state above is the nature of your market/customers then you are in the wrong market.
SaaS products require a healthy customer retention rate to be successful.
The analogy in our case is often the gym. At a gym:
a) 70% try it out for a month or two then cancel,
b) 25% keep paying but rarely show up,
c) 5% of customers pay and visit frequently (regulars)
A business in that situation has to either make a ton of money form each customer OR have enough new (paying) customers signing up frequently to fill both B and A - to survive.
Attempting to minimize the effects of a market with an inherently high churn rate is costly and usually not worth the effort.
I disagree. I believe if whats state above is the nature of your market/customers then you are in the wrong market.
SaaS products require a healthy customer retention rate to be successful.
The analogy in our case is often the gym. At a gym:
a) 70% try it out for a month or two then cancel,
b) 25% keep paying but rarely show up,
c) 5% of customers pay and visit frequently (regulars)
A business in that situation has to either make a ton of money form each customer OR have enough new (paying) customers signing up frequently to fill both B and A - to survive.
Attempting to minimize the effects of a market with an inherently high churn rate is costly and usually not worth the effort.