So here's how SaaS companies look at churn/retention...
Amitt Sharma
Chief "Affordability Obsession" Officer at Snapmint | x Sprinklr, Akamai, MoEngage, Observe.AI
“It’s good to see 80% of SaaS businesses measuring churn, as this is crucial to long growth, as this post on ideas to reduce SaaS churn shows. Really that figure should be closer to 100%. If you’re not measuring churn then [you’re] setting yourself up to fail.”
SaaS, short for “software as a service,” is a business model that depends on selling subscriptions to a proprietary software, usually to businesses. Retaining clients is just as important to the bottom line as adding them in the first place. That’s why the results of a new study are so surprising: Turns out not all SaaS professionals are tracking the right data.
Robert Allen, who covered the data in a blog post at Smart Insights, unpacked this:
"Of the over 300 SaaS businesses polled, certain percentages tracked different metrics. One interesting number: 80 percent of the businesses tracked their churn, a valuable stat to keep track of, as it can explain why companies are choosing to stop using the service after initially signing up for it.'