6 Ways to Increase Profits and Reduce Churn

When you are just starting in the SaaS business, churn was not something that you had to concern yourself with. Instead, your worries lay in gaining customers and improving your software. Now that you have grown, churn is something to start paying attention to.

As your SaaS app grows, churn is an issue that you have to face head-on. If you are not sure what churn is, this article explains it well. If you do know what churn is, you can skip reading yet another blog post on the subject and get right to the task at hand.

Let’s get down to it – taking steps to reduce your churn. Once you understand how you do this, your business will begin to realize a real profit.

Know the Source

It should be obvious, but it isn’t readily apparent to some owners. To begin reducing churn, you have got to know where it is coming from. Why are customers leaving? You will not know unless you ask. Skip the surveys and get personal.

Human-to-human contact is going to be the best way for you to discover why your customers have moved on. You undoubtedly required an email from subscribers…use it. When you see that a customer hasn’t re-upped, contact them, and ask why. Ask specific questions, and have a real conversation.

Offer Something More

Your customers use your product because it has value to them. When that value levels off or, worse, starts to decrease, you lose customers. When customers continue to find use in your software, they continue to subscribe.

Find a way to give your customers value every day. Come up with an offering that will help your customers in their day-to-day business tasks. Calendars, reports, and other offerings tend to be helpful.

Wind Beneath Their Wings

We are not going to break into song, but we are going to tell you that when your customers rely on you to help keep their business afloat, they aren’t going to churn. You need to find a way to make your customers need you. Anyone can live without your product, but do they want to? That is the question you have to answer.

Get Into the Flow

The product you offer needs to be part of someone’s workflow. Whether your SaaS offering is geared towards the home business owner or major CEOs, you need to give them something that is easily incorporated into the daily flow of their work. Better yet, try to come up with a product that is essential to the operation of the whole company.

Start Right

It’s too late to get off and running; you are already running. What you can do, from this point on, is to attract the right audience to your product. Why? To reduce churn, of course.

Consider the type of customers that you are attracting if your major “selling” point is a free trial offer or a discount service. When you were new, offering a free trial or steeply discounted product may have brought people to the door. Now that you are expanding, it’s time to rethink the freebies.

There’s nothing wrong with offering discounts or even free trials, but don’t do it in such a way that you are shooting yourself in the foot. If you’re only selling point is that you are giving something away for nothing, you simply must rethink your marketing strategy.

Tell Them Why They Want It

You aren’t home-free once you hook them. You’ve got to keep telling your customers why your product is valuable. Never miss an opportunity to tell your customers what problem you are helping them solve and how you are making their lives easier.

A great way to do this is with a monthly email or newsletter. The key to doing this is not to repeat yourself in each newsletter. Instead, think of a new point to highlight with each one; remind your customers why they are subscribing to your product.


So, now that you’ve read this far, what ideas do you have to reduce churn? What are you already doing and what do you plan on adding to your plan? Keeping a close eye on your SaaS dashboard is an excellent thing to do, but keeping an eye on it isn’t enough. Use the information that you are given to reduce churn and grow your business.