The Top Reasons For Monthly Churn You Experience

Losing customers can be absolutely disheartening to you and your organisation. We find out the top reasons why customers unsubscribe from services and products and monthly churn.

Customers are your life and blood in an organisation. But the fact of the matter is, no customers stick around forever. This is what monthly churn is – a customer unsubscribing or cancelling your product or service. Although it is unfortunate, it is something that every organisation has to get used to. Whether it is SaaS or not.

You need to have a good idea, at all times, how many customers are dropping off and how it is affecting your revenue. More importantly, however, you need to know WHY the customers are dropping off.

There are two simple reasons why customers churn: It is YOU or it is THEM

We have found some of the most common reasons why customers monthly churn.



We will start with what YOU could be doing wrong that is sending customers running for the hills.

  • They Had A Bad Customer Experience

There is no quicker way of losing a customer than giving them a bad customer experience.

The minute the customer feels like they are not your priority is the minute you have lost them. You need to be looking at your customer the same way you look at a serious relationship.

As soon as you stop putting effort in, and managing the relationship, you can expect your customer to promptly walk out and monthly churn.

Bad experiences can come in various forms:

  • Lack of communication

If you customer battles to contact you, has no support or feels like they are trying to make their way around your site and product alone, you can expect them to churn.

The frustration of trying to reach a company on various platforms will be enough to drive a customer to cancellation.

  • Customer service staff are unhelpful and untrained

Putting some money into training your customer support could be the difference between your organisational success or downfall.

Calling a helpline is every customer’s last choice of contacting you, and it is made worse if your staff are untrained, unhelpful and downright rude.

  • You Have A Poor Onboarding Experience

Picture the scene, you have eventually found a possible solution or tool to something that will make your life a lot easier. The problem is that you are now on page six of filling out your information and there is no end in sight.

If your sign up process is too long, too complicated and full of odd questions, the customer is most likely to drop off that leads to monthly churn, no matter how much they want the product.

You need to make sure that the experience is as streamlined as possible:

  • Keep the goal as focused and as close as possible;
  • Create a flawless customer journey;
  • Make it interactive;
  • Don’t ask for useless information;
  • Setup an online support.
  • The Product Actually Holds No Value

If the product is not giving the customer their required outcome, the customer will more than likely monthly churn.

Customers need to start seeing a ROI on the product that they have bought within a given time period, and should this not happen, you will see the customer drop off.

Keep in mind though, this could be either the customer’s fault or the organisation’s. In many cases, there is a simple lack of communication between both parties and there is a lack of understanding about what the product actually does.

You can overcome this in the following ways:

  • Re-look at your messaging and selling points- are they all clear?
  • Take time to understand what your customer ACTUALLY wants and create something along those lines;
  • Reexamine who you are targeting with your product, your audience could need to be shifted;
  • Conduct surveys and collect as much data as you can about your audience.
  • Number of Features

There are two stumbling blocks with features. There is either too many, or there are not enough! Getting that fine balance is tricky, but with enough research into your customer and their needs, you can find that fine line!

  • Too Many Features

As much as you want to offer the best and the most to your customer, you need to refrain from bogging the customer down with too many options.

If your site is starting to look like a Jackson Pollock painting, maybe consider dropping some of the more unnecessary features to reduce the churn rate.

Do an analysis of your site (GA and HotJar can assist in with this) and see what are the pages and features that most people click on. Then start the culling process, no matter how tough it is and get on with the features that people actually want.

  • Too Little Features

In the same breath, if you are not offering your client some spectacular new services, you could just be losing out.

The “one-stop-shop” idea for a certain problem is usually the best avenue for customers. It is convenient, it is simple and many times, they come across something that they didn’t even know they needed.

Be innovative with your features. Add tools that they will need to streamline their journey and business.

  • Your Pricing Is All Wrong

Money is always a tricky subject: customers want to pay as little as possible, but at the end of the day, this is your bread and butter. Making sure that the customer is getting the best value for what they are paying for is vital.

Many people do expect a free trial to test out the product for a period before deciding whether they want it or not. The question is, what happens after the trial ends?

The customer will now need to choose to enter credit card details and start paying for this service that they really need.

But are you meeting their needs? Many customers will want to drop off if you are not meeting their pricing requirements:

  • You don’t offer monthly or annual subscriptions.

Most people expect to start a service on a monthly subscription basis, to “test the water”.

If you only offer annual, they could feel like they will be bound into something for too long. If you are offering a monthly and annual subscription, you could tempt the customer into an annual by offering a discount for the longer period.

  • Various Package Options.

One size does not always fit all, and most people will not require every feature that you offer. Creating packages to choose from at varying price scales can lead to you landing more customers and keeping them loyal for longer.

  • Too Expensive.

At the end of the day, your product could just simply be too expensive. Make sure you do an analysis of your competition to see what they are charging to make sure you are not over or undercharging.

  • Your Competitor Is Offering Something Better

Leading on from the previous point, knowing what your competitors are doing is vital. Innovation is the key to staying competitive in this day and age.

Customer’s loyalty will change the minute they see that they can get more value out of another company.

Make sure you are continually trying to evolve and offer the customer the latest features that you can offer.

Try and permanently wow them with brand new, useful features will coax them to stick it out with you to see what else you can do for them.



  • Their Credit Card Has Expired

As simple as this may seem, this is a regular occurrence in organisations. In many cases, companies have noticed that a customer has just not paid for the month, and has presumed that they have dropped off.

The answer here is communication!

Reaching out to the customer as a quick check-in could find out that the simple answer is that they just need to update their information on the system.

  • They Need To Downgrade

Although this is not entirely customer churn, it could impact your revenue churn calculation.

Customers could realize that they do not need all of the features that they previously did and will choose one of the cheaper packages.

Keep in mind, sometimes it is better for a customer to downgrade, rather than drop off entirely. There are always ways and means of coaxing them back to taking the full service again.

  • Their Needs Are Changing

As your business evolves, you have to understand that theirs is too. There could be a new shift in direction for the company, or it can be expanding into something different entirely.

Address this by contacting them and ascertaining just what they are looking for. If you can tailor a package to meet their unique needs, you may just win back a very loyal and happy customer.

There could also be a new hand taking over, and new management who is taking over the account.

The loss of the frequent contact can mean that a lot more work is in store for you. You will essentially need to build up the whole relationship with the account manager and win their trust.

Once again, communication is key! Set up a meeting and introduce you and your company to the new manager. You might even find that they could use more of your services!

  • Closing of Business

This is something that is something that is unfortunately unavoidable from both sides. Should your customer become cash-strapped, they will need to start cutting down on various services.

Going out of business entirely is something that you simply cannot do anything about and you will simply have to work on finding a new customer to replace that lost revenue.


Leave a Reply

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

Back to Top