Churn Rate
topic on 7 shows · 22 statements across 21 episodes
Innovators & Investors
Startups For the Rest of Us
Lenny's Podcast
the Official SaaStr Podcast
Top Founders
All-In
20VC
22 statements about Churn Rate, every show
Langley: Flock Safety raised capital and sits at 0.1% churn
“You know, we raised more money at the beginning of the year. Companies still growing. We could be growing faster. If we used to have zero churn, now we have to your .1%.”
Cohen: Any monthly churn rate over 3% is terrible
“Anything about three percent per month cancellation is, is, is terrible.”
Cohen: A SaaS company's maximum size is new additions divided by churn
“There's this maximum size you could ever be. It's when churn equals growth, right? Like that's the, So how would you compute that? It's actually quite simple because let's say you have this five percent per month, just let's take a number. So it's simply the a…”
Walling: SaaS Revenue Plateau Equals New Monthly MRR Divided by Churn
“The math for calculating your plateau, you know, which is the new MRR in a given month divided by your churn rate.”
Alan D'Souza: ReachInbox Monthly Logo Churn Is Around 7% to 7.5%
“Churn rate in our industry is also pretty high, but thankfully we are at a single digit churn rate. We are in the we are around seven to 7.5% churn rate right now.”
Beckord: Startup Founders Are Poor, Cheap, And Yield High Churn
“One of the challenges of my business is founders are pretty poor. They're cheap. They're poor. They go out of business. There's a higher churn rate.”
Roberge: Startups cannot accurately assess customer churn rate for 5 years
“Like, you don't know your churn rate really for five years or more, so you have to make some pretty heavy assumptions there.”
Delivet: Good onboarding reduces annual churn by 5 to 10 points
“And if you do a good customer onboarding process, you can, it can help you reduce your annual churn rate by five to 10 points.”
Rike: CLTV:CAC is meaningless without at least one to two renewal cycles
“If you haven't had at least one, but more and more appropriately, two renewal cycles, this is a meaningless metric. Why? Because you really don't know what your churn rate is.”
Campbell: SaaS retention is highest for daily tools and background automation
“When we look at churn rates across different types of products, those products that are workflow products you use every single day or mostly every single day, or those products you don't have to log into, but you still get the value. That's where the lowest ch…”
Folderly's Monthly Churn Averages 10-15%, Spiking to 25% in Summer
“Our churn it was 10, the July and August, it went under 25 because of the summer and, like, cutting costs of the budgets until the September and other business months. But our average churn rate is 10, maximum 15.”
Universal product churn is healthy if non-target users are the ones leaving
“When you're a company like us, the product is email. Everyone can use email. So there's a lot of people trying the product. And some of those will churn, and that's a good thing, right? Because we cannot be a solution for everyone. So if I only look at churn, …”
Kellogg: ARR is a fact while churn rates are an opinion
“There's a semi-famous quote that but cash is a fact, profit is an opinion. I feel the same way about ARR and churn, that ARR is a fact churn, And churn rates are an opinion.”
Lemkin: SaaS sales cycles and churn rates are highly correlated
“Sales cycles and churn rates are highly correlated.”
Rossi: Buzzsprout maintains a monthly logo churn rate between 1% and 2%
“Less than two percent. Yeah. Yeah. Our churn per month is somewhere between one and two percent.”
Unilog maintains an incredibly low annual churn rate of under 0.5%.
“I mean, we, our churn is less than half a percent.”
Princen: 10% monthly churn in low-touch SaaS means zero product-market fit
“Two percent is a very good monthly churn for a low touch type business. Five percent is okay. 10% is a problem. 10% basically means you don't have any product market fill market fit and your business is, you know, is not sustainable.”
Chopra: Monthly logo churn above 3% is bad for SaaS
“So, I mean, you can talk about anything, say, above three percent as a bad churn. At least that's how I look at things.”
Roberge: HubSpot Suffered an 8% Monthly Churn Rate at $2.5M ARR
“Eight months later, it was looking good. We probably were doing two and a half million at that point. We had, you know 10, 12 reps. But churn was eight percent a month.”
Wille: Paid advertising accelerates growth but lowers conversion and raises churn
“As soon as you start pushing on the gas and you start advertising, you get a slightly different mix. Now it's still important and it's important from a growth point of view, but you have to acknowledge that one of the outcomes, one of the negative side effects…”