Jason Cohen’s Post

Here's the cold, hard truth: Your SaaS is bleeding customers, and that fancy growth strategy? It's worth jack if you can't keep your users around. I've been there, watching customers bail like it's a sinking ship. It's a gut punch, but it taught me something crucial: You've got to get inside your churned customers' heads or you're screwed. This isn't just about exit surveys and "please don't go" emails. It's about digging deep into the data, spotting patterns, and fixing what's broken before it breaks you. Stop obsessing over new sign-ups for a second. Your goldmine is sitting right there in your existing user base. Boost their lifetime value, and you'll see growth that actually means something. So, what's your playbook for keeping customers sticky? Are you just crossing your fingers and hoping for the best, or do you have a real strategy? https://lnkd.in/euxh67dc

Winning at SaaS doesn’t come from simply looking at numbers; it comes from understanding them. Churn isn't just a metric—it's a signal that something isn't right. If you're a founder running a SaaS business, you can't afford to ignore it. Take it from the leaders who’ve cracked the code: it's about recognizing the patterns, listening to the feedback, and pivoting intelligently. When we talk about churn, we’re not just looking at percentages; we’re analyzing customer behavior, satisfaction, and the overall experience. Companies that treat metrics as human stories often see the biggest breakthroughs. This isn't fluff; it's the reality for those who wish to stay ahead. Instead of being paralyzed by what churn means, leverage it. Build your strategy around retaining the right customers. If you aren't actively working to reduce churn, you're simply waiting for your ship to sink while you check the tides. What’s your approach to understanding churn? I'm eager to hear your experiences. https://lnkd.in/eAfwybUu

Imagine growing your SaaS business without adding a single new customer. Sounds impossible? It’s not. The key is Net Dollar Retention (NDR). Let me explain: NDR measures how much more (or less) your existing customers are spending over time. If some customers churn, but others expand their usage or upgrade, NDR shows you the net effect. An NDR of 100% means your current customers are spending just as much as before. But here’s where the magic happens: If your NDR is 110%, 120%, or higher.. It means your existing customers are actually spending more over time. You’re growing without signing a single new deal. And that’s powerful. Imagine your revenue goes up 20% year-over-year just because of expansions and upsells. That means less pressure on new sales, and more focus on delivering value to the customers you already have. That’s why investors love it… and why you should focus on it. How do you do it? → Reduce churn by making sure your product is sticky. → Create natural upsell paths that grow as your customers grow. Grow what you’ve already got. It’s the best growth hack in SaaS. Not sure where to start with your startup’s finances? 👉 Find out: https://lnkd.in/eesM2S5G or DM me. p.s. Like to DIY? Use these free resources: 💸 Cash Flow Forecast Template: https://lnkd.in/ekqxPSeX ✅ Month-End Close Checklist: https://lnkd.in/eGNHbMdW 📊 Open-Source Financial Model: https://lnkd.in/evyZs_Nv

SaaS companies always grapple with churn rates, and that's even higher with AI SaaS, something over 20% is normal! It's not merely a statistic; it's a vital sign indicating how satisfied customers are with your service. The article explores different types of SaaS churn—user churn, which signals dissatisfied customers, and revenue churn, reflecting the financial impact of downgrades or cancellations. These metrics are essential for understanding whether your business is thriving or in trouble... Curious about the strategies that can help reduce churn? It seems that a proactive approach, involving everything from enhancing customer support to creating personalized experiences, could make all the difference. What has your experience been with managing churn in your business? https://lnkd.in/e9yjcX4F

Is your SaaS company's growth strategy missing a crucial piece of the puzzle? Just read Jake Brereton's comprehensive guide on Net Revenue Retention (NRR) in SaaS. It dives deep into why NRR isn't just a metric, but a growth engine for sustainable success. Key insight: "A strong SaaS NRR generally falls between 100% and 130%, indicating not just retention, but significant revenue expansion from existing customers." My take: In today's competitive landscape, focusing solely on new customer acquisition is shortsighted. The real magic happens when you unlock the full potential of your existing customer base. It's time we shift our mindset from "land" to "land and expand." https://lnkd.in/e59HQk9p Subscribe to our monthly NRR newsletter to get curated articles on NRR strategies, trends, and best practices as well as our takes and opinions. https://lnkd.in/ehNkUFTA

What does your churn rate say about your business? If you think a low churn rate is the silver bullet for success, think again. The truth is, defining a "good" churn rate is more complex than you might imagine, and relying on average statistics can lead your SaaS company astray. The reality is that churn rates vary wildly across industries and individual companies. For some, a churn rate of 3% is exceptional, while others could struggle with 10% or even higher - and still thrive. The key isn't just in keeping the rate low, but in understanding the unique factors that affect your business. Companies with higher average revenue per user or those that operate on longer contracts tend to experience less churn. But here's a kicker: many venture-funded companies see churn spike because they might just mask underlying issues with cash. Isn't it time we stopped obsessing over borrowed metrics and started focusing on what matters? What's your take on churn? How do you gauge success in your subscription model? https://lnkd.in/ed4rj6KX

What if the secret to success in your SaaS business is embracing churn instead of fearing it? While losing customers seems counterintuitive, understanding the churn rate can provide invaluable insights into your growth strategy. Churn isn't just about numbers; it reflects deeper issues your business might face—like mismatched customer expectations and poor service quality. By analyzing your churn rate, you not only measure losses but can identify patterns and areas for improvement. Companies targeting small businesses often see higher churn rates, and that’s not a death knell but rather an opportunity to refine customer acquisition. Remember, a churn rate around 5% to 7% annually is more than acceptable for mature companies. It’s crucial to know your ideal customer and tailor your offerings to meet their needs. Instead of panicking when customers leave, focus on engaging effectively with them and gathering their feedback. If you’re keen to dive deeper into how churn impacts your business and what you can do about it, check out the article that reveals the essential aspects every SaaS company should know. What strategies have you employed to minimize churn in your business? Share your thoughts. https://lnkd.in/eGMp5re3

Churn rate is a critical metric for SaaS companies, often overlooked but essential for long-term growth. Did you know that the average SaaS company sees around 5-7% churn per month? This statistic highlights that retaining customers is just as important, if not more so, than acquiring new ones. Understanding why customers leave is vital for refining your product and support strategies. The article emphasizes that focusing on customer feedback can help reduce churn and improve overall satisfaction. It’s essential to create an environment where customers feel valued and heard. Reducing churn not only enhances customer loyalty but also significantly affects profitability. Fewer customer losses mean lower acquisition costs and a more sustainable growth trajectory. What strategies have you implemented to reduce churn in your business? I’d love to hear your insights! https://lnkd.in/eGMp5re3