User Churn threatens your ability to generate Monthly Recurring Revenue, as well as putting a halt on your ability to grow the business. Tracking User Churn will allow your team to create a better overall experience that aligns with a value driven product. This in turn increases users, which fuels the growth engines of your SaaS business. Here we walk through exactly how to calculate User Churn, including what to and not to include in the calculation, as well as how to optimize this crucial SaaS metric.

1. User Churn:
Calculating and Optimizing
Price Intelligently’s SaaS Metric Mondays
Price Intelligently SaaS User Churn

2. Let’s talk about User Churn
Your SaaS company’s silent killer.
Price Intelligently SaaS User Churn

3. User =
Someone who uses/subscribes to your
product
Churn =
A measure of attrition or loss
SaaS MRR ChurnPrice Intelligently

4. User Churn =
The occurrence of a customer losing access
to your service and or the subscription
running out.
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Price Intelligently SaaS User Churn

5. SaaS User Churn
Here’s How You Breakdown User Churn Visually
(image taken from ProfitWell – free SaaS Metrics dashboard)
Price Intelligently

6. All that stuff is great but…why
should you even care?
Price Intelligently SaaS User Churn

7. “Not tracking User Churn is like –
trying to eat a bowl of cheerios with
a pitchfork; you won’t retain much”
Price Intelligently SaaS User Churn

8. More specifically…
Understanding your User Churn can help
Identify which aspect of
your product is causing
churn
Product
Improve projections and financial
planning models to account for
lost users
FinanceMarketing
Identify channels bringing
in crappy/happy
customers
See the breakdown of your User Churn with ProfitWell >>
Price Intelligently SaaS User Churn

9. Let’s go even deeper and
calculate User Churn like a
#boss
Price Intelligently SaaS User Churn

10. User Churn is all about the folks
leaving your business
User Churn Criteria Breakdown
Items to Include Items to Exclude
Churned Users that cancelled
Cancelled users who have not
churned
Expired subscriptions Delinquent Accounts
Price Intelligently SaaS User Churn

11. Price Intelligently SaaS User Churn
Total Churned users (via
cancellations) for the
month
Total Expired
Subscriptions for the
month
The calculation breakdown
EQUATION
Calculating User Churn is very simple and straightforward. Simply take
the SUM of the total churned users (who cancelled) + the total expired
subscriptions in a given month

12. Once you know how to
calculate like a #boss you can
optimize like an even bigger
#SaaS superstar
Price Intelligently SaaS User Churn

13. Here’s how to eliminate as much
User Churn as possible:
1. Fix your pricing
2. Churn loss surveys & conversations
3. Increase your active users
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Price Intelligently SaaS User Churn

14. Improper pricing can heavily influence your User churn, especially
if you don’t have a proper value metric or your customers just
don’t match your product’s value with your price.
Key Optimization #1
Fix Your Pricing Strategy
Price Intelligently SaaS User Churn

15. You’re likely missing the true reasons folks are leaving your product. Running
proper customer loss surveys that force respondents to choose the biggest
reason(s) their leaving will help you identify these reasons real quick.
Key Optimization #2
Run Churn Loss Surveys
Price Intelligently SaaS User Churn

16. This is much easier said than done, but a lot of active
cancellations come from individuals who don’t get hooked into
habitually using your product. Obsess over active users.
Key Optimization #3
Increase your active users
Price Intelligently SaaS User Churn

17. Boom. You’re now a User Churn
rock star*.
*…or just a normal SaaS aficionado that’s more informed and hopefully learned something useful.
Price Intelligently SaaS User Churn

18. Want real time SaaS Metrics (including User Churn)?
Know and understand your SaaS Metrics
with ProfitWell for free - the most accurate
metrics on the market.
Click here to get your free ProfitWell account >>
Price Intelligently SaaS User Churn