3 Actionable Tactics to Decrease Your Churn Rate

Although it has been agreed that churn is a part of any SaaS, keeping customers on board is vital to your organization’s success. Your customers are your bread and butter and whether they are large contributors to your revenue or part of the smaller monthly subscription clients, you need to make sure that they stick with your brand.

So, just how do you keep them on or at least decrease your churn? There will come a time when you face losing a customer based either on something you have done (or not done) or for their own reasons. So, just what do you do to keep them on board?

The answer is simple. Take action immediately!

What you need to keep in mind is that this customer, no matter how small they are, could eventually become a larger client. So, right now, even if you are losing one of the lower tier customers, your actions now could convince them to stay on, become more loyal, and, if you play your cards right, become a higher paying customer.


  1. Reach Out Now!

Do not even hesitate when it comes to communicating with a customer who looks like they are about to drop out. Keeping a close eye on your customer behavior is one of the most vital things in your business. This way you can monitor your data and when something seems fishy with a particular client, your first step would be to communicate with them.

It is important to keep in mind that customers will always be drawn to personal interaction. Customers prefer feeling like an individual and having a personal touch. If you are a larger corporation with hundreds of clients, this does become tricky.

What adds to the complexity of the situation is that most organizations are analyzing data to track and interpret customer trends and behavior. Although a lot of this data is accurate and you can determine, based on these trends, that a customer could be dropping out, sometimes it can be incorrect.

So, how is this rectified?


The Initial, Automated Message

In many instances, SaaS business sends out an automated message to remind the customer of the product and entice them to stay on.

A message along the lines of; “Hey, we have noticed that you haven’t logged in for a while, can we help you with anything?” or “What can we do to further improve your experience?”.

In many cases, the customer might just have become distracted, busy or even forgot hat they were using your product or service. These things happen, life is busy.

But what happens if they don’t respond to that and take the next step?


Personal, One-On-One Message

This may not work, and the customer could still want to cancel the services and could take the next step in dropping out. 66% of people have swapped services due to bad and impersonal service!

This is where you make the communication a lot more personal. If a customer doesn’t feel like they are simply a number, and that they are actually valued as a person, they will be a lot more open to listening and responding to you.

A great example here is when customers call into call centers like banks or insurance. They are essentially calling in with a problem that they need fixed. If all they get on the other end is an automated robot who simply guides them a solution, they feel like they could have simply found that answer online.  A study showed that 83% of people prefer dealing with humans rather than automated responses.

What you need to be driving here is value and personalization. Forming trust with your customer is vital in keeping them loyal to your brand.

There are various ways of making the communication with churning clients personalized:

  • Calling your customer. This is one of the quickest ways to get to the customer directly and ascertain what the problem is. This is also a good way of connecting personally with the client and showing that they actually matter to you;
  • Pop-up chat boxes on your site are extremely useful in having instant, one-on-one contact with a client. This works if the client is not based in the same country as you, if they are difficult to get hold of, or if you simply do not have the contact details to do so;
  • Personalized Email and Survey. Although this should be your last resort in contacting your customer, this could assist in ascertaining just where everything went wrong.

What you have to keep in mind here is that this communication will serve to benefit you in the long run. The response from the customer will guide you in what you can possibly improve about your product, service or business.

Everything that you take from this will be some kind of learning and you will be able to put that toward improving your service and product.


  1. Make An Offer They Can’t Refuse

We all make mistakes, even you as a company can make mistakes. If the level of service has not been up to the customers’ expectation, you can certainly expect them to churn.

Maybe it wasn’t even your fault that your customer is dropping out. Perhaps it was due to their own personal reasons. Either they can no longer afford it or do not understand how they can benefit from your service further.

Offer the customer an extra something before making the decision to simply cancel. This is where you are going to thank yourself for contacting them first. Their response will determine just what you can offer your client before they disappear completely.

They could let you know that they are churning due to the service being too expensive, a lack of customer support or that they simply needed a bit longer to test the service.

If they cannot afford the monthly subscription, either offer a lower package, a discount or an extended free trial for a limited time. This will create a level of trust and when their business starts picking up, they will consider jumping back to the upper plan that offers them so much more.

If they are dropping out due to the product or service not meeting their expectation, take the time to soak in as much as you can about what they are not happy with. Sometimes in these cases, it could be a great idea to let the customer go for a while, make amendments to the services (should they be worthwhile) and go back to the customer.

At the end of the day, it is all about surprising and delighting customers that keep them coming back for more, right? Imagine going back to a churned customer a few weeks later and letting them know that you have made the changes that they suggested and thanking them for helping you to make your service better.

Want to hook them in a little bit more? Offer them a free trial to test out the full service and allow them a chance to give you feedback!


  1. Make The Change

This simply ties in with what has been previously mentioned. Surveys to your customers, open communication, and constant research and development are the best ways to keep customers on board and happy.

Constant innovation is vital to your company success. If you are not keeping up with the times and watching what the industry and your competitors are doing, you will be left behind. Customers want to constantly be wowed with new changes, the latest technology and swift, simple and efficient processes.

If you have a direct line to your customer, you will know exactly what they are wanting at all times.

Don’t be scared to try things and make changes. Add in extra features that may or may not work. Test out applications that could make your product more streamlined. Your best friend here is data. The minute you see a great ROI on an improvement or a definite A/B test result, make the full change.

Keeping up to date with industry news and changes will help you here. If you offer your users new and improved features without them even asking, you will certainly be creating a portfolio of happy and satisfied customers.

Sign up for our newsletters and get more pieces of advice on how to decrease your churn rate straight to your inbox!

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to Top