Summary: Illustrates graphically why churn is a huge problem a SaaS company gets larger. It also looks at a very surprising factor that can massively accelerate SaaS growth: negative churn. (This article is applicable to any recurring revenue business, not just SaaS.) Introduction As a SaaS company becomes larger, the size of the subscription base becomes large enough that any kind of churn against that base becomes a large number.

Discussion

trevorhatfield

NEW 4 years ago

@samanthajc15 Churn becomes much more important as the company grows. In the beginning there are a lot of things to concentrate on getting right, so sometimes it’s importance gets pushed back. This is fine, but it does become the make it or break it metric down the line.

SamanthaJC15

NEW 5 years ago

A lot of SaaS CEO's aren't concerned with their churn rate as long as they see some growth in their business along the way. Rather, they should focus on their churn rate at all times to reduce it, create negative churn and keep customers happy. Thanks for sharing Christina!

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