Dear SaaStr: How Do I Best Prevent Churn?
SaaStr
MARCH 28, 2024
Dear SaaStr: How Do I Best Prevent Churn? You don’t. Instead, you drive it down. Each quarter. You can’t eliminate churn. It’s a fact of business life in selling a product with recurring revenue and thus recurring sales. You can hide churn (e.g., by signing multiyear contracts). And you can drive it down. But you can’t eliminate it. My top suggestion is: Measure churn carefully, and consistently.
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