Show Notes
Most SaaS founders pay attention to churn, but beneath the surface of a good or bad churn number, many important details are missed.
In this episode of In Demand, Asia and Kim break down the real story behind churn. What the numbers do and don't tell you and how to dig deeper to uncover the patterns driving customer retention (or loss).
From understanding net revenue retention to running effective churn interviews, this is the ultimate primer on diagnosing and solving churn for your SaaS.
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Links:
Chapters
- (00:01:30) - Why a 5% churn rate may not be as healthy as you think.
- (00:03:55) - How do you measure churn? And getting detailed with qualified vs. unqualified churn and why you need to measure both.
- (00:06:05) - How to set up onboarding to keep track of qualified vs. unqualified churn.
- (00:07:30) - Understanding cohort-based churn and net revenue retention (NRR).
- (00:09:19) - How to interpret NRR and what benchmarks really mean.
- (00:13:35) - Why getting into segmented NRR is valuable.
- (00:16:30) - Churn is nuanced. If you are looking at a monthly churn number, you could be missing the bigger picture.
- (00:17:00) - If you collect cancellation reasons, you may miss the real reasons your customers are churning.
- (00:21:15) - How to conduct effective churn interviews (with participants who will actually attend) and the churn matrix: qualified/unqualified vs. activated/inactivated.
- (00:26:45) - What churn interviews can reveal: product confusion, missing features, poor product marketing.
- (00:27:30) - Product management issues that can come up in churn interviews.
- (00:31:15) - How to pre-select who to interview to give yourself the best chance of finding meaningful insights.
- (00:35:00) - Why churned customers are more talkative than trial users.
- (00:37:05) - What good churn research uncovers: acquisition, pricing, activation, product gaps.
