Customer churn analysis is critical to understanding why you lose customers. If you're committed to building a sustainable SaaS business, you must pay close attention to customer churn. When you're suffering from troubling levels of customer retention, this can throw the sustainability of your SaaS business into question.

To stop customer churn in its tracks, you should leverage behavioral analytics to understand which customer actions or attributes are associated with high churn. Once you understand the cause, you can then implement targeted retention efforts that will reduce the likelihood of churn across your user base.


What is customer churn analysis?

Customer churn analysis is the process of understanding which customers are at risk of churning. You can also use this approach to understand why some customers continue using your SaaS solution while others leave. Once you have an understanding of what leads users to churn, you can focus on retention efforts that will address these underlying problems effectively.

Customer churn analysis typically involves a mix of qualitative and quantitative data. With the right churn data at your disposal, you can make informed decisions about why your users are leaving and what you can do to improve user retention. The more data you have, the easier it is for you to make informed decisions on how to address churn.

How can you conduct customer churn analysis?

With a solution like Raaft at your fingertips, it's never been easier to conduct customer churn analysis. If you want to collect SaaS user feedback and save customers with targeted retention flows, you need Raaft in your corner. Our tool is a game-changer for SaaS businesses suffering from high user churn.

Raaft provides a simple, straightforward method for your users to tell you exactly why they are canceling. They can select from pre-prepared motivators or leave written feedback that appears in a dedicated dashboard. The mix of qualitative and quantitative data can give you a well-rounded picture of where your SaaS solution falls short.

When you are analyzing customer churn data, ask yourself the following questions:

  • What is our current customer churn rate?
  • What are the main causes of customer churn?
  • Which specific customers are at risk for churning?
  • How should we segment our customers?
  • Which marketing campaign is more effective at reducing churn?

If you're a customer success leader, you should be able to answer all of the above questions with accurate information. If you can't, you need to work on improving your data collection and customer churn analysis process so that you can take actionable steps toward reducing customer churn.

Why does customer churn analysis matter?

Without customer churn analysis, you may never identify or address the underlying issues that lead to high churn. If you continue to lose a significant percentage of your user base to churn, your SaaS business may eventually run out of road.

The cost of acquiring a SaaS customer is much higher than retaining one. With this in mind, investing in solutions to improve your oversight and understanding of user churn will pay significant dividends.

Customer churn analysis can help you improve your understanding of the SaaS customer lifecycle. This means that you can look beyond basic metrics like customer lifetime value (CLTV) to understand what keeps users engaged with your solution over the long term.

Raaft is a simple, effective tool for conducting customer churn analysis. When you deploy Raaft and ask your users why they are canceling, you will receive data-rich answers that will help you identify the underlying causes of churn.

With this data in hand, you can address user pain points more effectively and develop a customer retention strategy to reduce high churn. Customer churn analysis is not a one-off task; it's an ongoing process that will consistently require your attention.

How can you leverage churn data?

When you receive SaaS customer feedback that includes quantitative and qualitative data on why users are churning, you can then take steps to address the root causes. The more you know about your users, the better equipped you will be to reduce churn and retain customers.

In order to reduce churn, you must address the pain points that drive users away from your solution. It is far better to nip these problems in the bud than to wait for more users to churn before taking action.

Customer churn analysis is only useful if you translate it into actionable steps that can help your SaaS business retain customers. You need to take the time to learn more about your users, pinpoint the root causes of churn, and develop a retention strategy that takes both qualitative and quantitative factors into account.

The first step in this process is always collecting and analyzing customer churn data. Deploying a SaaS feedback tool like Raaft is an effective way to improve your understanding of how and why users are canceling.

What are the benefits of customer churn modeling?

Customer churn modeling will give you a mathematical representation of how churn is eating away at your SaaS user base. When you have access to churn data, you can begin to run models to determine how many users are likely to churn over a given period of time.

This information will allow you to more accurately project the impact of customer churn on your SaaS business, especially if you can continue collecting and analyzing data after implementing a customer retention strategy.

How can you get started with customer attrition analysis?

If you want to unlock a treasure trove of critical insights into user churn, you should survey your users and understand why they are canceling. When you use Raaft to conduct SaaS customer attrition analysis, the root causes of churn take center stage.

Raaft is a simple and effective tool for collecting and analyzing customer feedback. When you deploy Raaft, users are automatically prompted to answer a few questions about why they are canceling. The quantitative and qualitative data they provide in their answers will help you identify the root causes of churn and equp you with the necessary insights to improve product-market fit.

If you’re ready to get started and take steps to reduce your SaaS churn, you can try Raaft for free today.

Adam Crookes
Written byAdam Crookes

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