SaaS customer churn analysis is a process of identifying why customers are cancelling their subscription to your service.

There are many reasons why customers may choose to cancel their subscription, such as price, lack of features, weak value proposition, or poor customer service.

To prevent customers from cancelling their subscriptions, it is important to identify the root cause of the problem.

In some cases, there are many underlying reasons for customer churn.

With access to an abundance of data, you can begin to pinpoint the main reasons why customers are cancelling their subscriptions.

What is SaaS customer churn analysis?

SaaS customer churn analysis is all about breaking down why users are choosing to cancel their subscriptions and leave your service.

Understanding why SaaS users churn is the key to developing an effective retention strategy.

To prevent customers from leaving, you must know what would cause them to stay on.

Customer churn analysis is an essential point of reflection for SaaS teams to determine how they can improve their service and keep users engaged.

If you cannot keep customer churn under control, this will eat away at your subscription base and stifle growth.

Nobody wants to acquire a SaaS business with high churn.

It throws the sustainability of the business into question and represents a poor store of value for potential acquirers.

SaaS Customer Churn Analysis
SaaS Customer Churn Analysis

Why is customer health scoring important?

Customer health scoring enables you to identify users at risk of churning in advance.

You can think of customer health scoring as a safety net for your SaaS business.

The score allows you to take action before it’s too late and save at-risk users from cancelling their subscriptions.

By predicting which users are likely to churn, you can take steps to prevent them from doing so, such as extending offers to the users or introducing them to underutilized features that could enhance the value they get from your service.

When you conduct SaaS churn analysis, customer health scoring is a vital component of the process.

Determining how to structure the scoring system is often subjective.

Ultimately, it all depends on how you define a user as someone that is at risk of churning.

For instance, you may have noticed low user engagement or a lack of features being utilized.

These could be early warning signs that a user is considering cancelling their subscription.

In this case, you could deem this user as being at risk of churning and get the ball rolling on preventative measures.

What can you learn from customer churn analysis?

When it comes to conducting customer churn analysis, here are just a few things you can learn:

  1. Which features are churning customers using the least?
  2. How long are users sticking around before they churn?
  3. Which user segments are more likely to churn?
  4. Which channels are bringing in the most churning customers?
  5. At what point do churning customers stop unlocking value?

Armed with this information, you can make changes to your product or service that could prevent customers from churning in the future.

How can you collect SaaS user churn data?

Using Raaft, you can seamlessly collect user churn analytics and amass a treasure trove of data to inform your retention strategy going forward.

Raaft is a churn prevention platform designed to support SaaS businesses in their efforts to collect user feedback and save customers with retention flows.

If your SaaS subscription base resembles a leaking bucket, you need Raaft in your corner.

Try Raaft for free today.

Adam Crookes
Written byAdam Crookes
Reviewed byMiguel Marques

📢 Why Listen to Me?I work with both bootstrapped and VC-backed SaaS companies to develop scalable inbound marketing strategies.

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