Churn

“It's a dangerous way to think about it, because if you think about it as like, they use more tokens every month that's successful. What if they're using the tokens in a way where the ROI is less clear to them? Meaning they don't realize that they're using toke…”

“The lower your prices, the higher your churn, the higher your support burden”

“The churn is like around 50% on month one”

“Monthly, you're going to have crazy high churn because people, what do you have, a job search every few years, and you search for a few months, and then you're done.”

“Mostly because I knew it will decrease my churn. Because when people need to post manually, if they get discouraged, if they don't post, they'll cancel the subscription. But when people are posting with automation, that's a whole different story.”

“And now we were on annual subscriptions, so now I basically have like six to nine months, if you're not getting value out of my software, to go ahead and fix your problem, make sure that you get value out of it, otherwise you're not gonna renew and you're gonn…”

“The challenge of having high churn with these kind of one, they're like more one-timer project based Users. Raising funding and exiting are both going to be severely impacted by that, because the metrics look bad.”

“He put the data in Snowflake, and he's like, okay, let me compare that to churn. And he found out the very best sales reps in the SMB motion had the highest churn, because they were shoving deals down the pipe. And so actually, none of the best reps were his b…”

“Like in marketing, marketing software companies tend to have terrible churn.”

“You cannot outsell high churn, right?”

“If you don't have customers that aren't coming back to you, then you haven't cast a wide enough net of who could be using your product.”

“And the harder it is to leave, man, the more stressful it is to buy.”

“If revenue is growing fast, we're bringing on new customers. They seem to like the idea. There's a very obvious problem it's solving, but then after a year, all the customers are churning at the other end. It probably suggests that we found the right problem, …”

“If you're going very quickly and you have a lot of revenue coming in, it's easy to ignore your churn, and that's a problem that will catch up with you in a year or two, and at that point, you've spent a whole bunch of money on growth and marketing chasing afte…”

“If you're a startup, maybe the fact that you don't have that many existing users means it doesn't matter that much if they churn because you're putting a lot more eggs into acquiring the next set of users.”

“And what we found was the churn and resurrection lines were actually much larger than the new user line, which implied to us that retention and driving those two lines was actually our biggest lever to drive net growth.”

“And we're going to actually tie comp to retention as a number. And like, just dramatically changed the behavior and the impact and results this year. Like our baseline of churn and from the account management org is like just a number that we just massively be…”

“If the churn is anything more than three or four percent a month, it's not even software anymore.”

“We realized that there was almost no impact on conversion and churn by raising our prices by 20%, which just automatically raised revenue by 20%.”

“I've seen founders who are doing, again, they're early, five K a month, one K a month, 20 K a month, and they're churning too high, and so they start implementing these anti-churn tactics, forcing everyone to go annual, or making that the default, or making en…”

“And let's say you in hyper growth and sign a lot of revenue into two or three year contract, you know, you might find out in three years that you have a huge churn wave coming up that you didn't predict.”

“When you have multiple products, The same client, using your multiple products, you're, you start locking up your clients. So, usually one product consumes data from another product, and this creates a lockup and it's great for, mitigate your churn”

“Churn tends to be about 20 to 25% lower because people will downgrade, but they're using, you don't get this, like I'm paying for so much and end up not doing, you know, not using a lot of it. It's like, oh, I'm using eight seats this month. I'm going to downg…”

“And if you're past product market fit, This area, this tactical retention, it's typically about 25 to 40% of your churn problem, which is a significant amount, but you don't really look at it because again, you're like, I gotta go focus on features.”

“The customers that were most likely to churn were those customers that were still using other competitor products, right? So they were using other credit cards. They were using other bank accounts. And we realized that when we would speak to these customers, t…”

“If you ever go to raise funding or to sell the company, your churn number, if your churn is 10, 15% a month, You're gonna have a real headwind towards convincing any outside investor or acquirer that your business is not on fire.”

“I see that enterprise sales cycles are lengthening and I see that the churn is increasing increasing in the smaller accounts.”

“See, I don't like B to C stuff. You need buckets of money. The churn is high, blah, blah, blah.”

“Very, very difficult for a customer to leave you if you're embedded into their workflows. They're not going to turn you off. If you're not, and they're using your platform on a web browser, for example, it's very, very easy for them to switch it off, move to a…”

“So the tip here is don't look at churn. Look at what we call revenue leakage. Revenue leakage is everything that make us lose money.”

“And the reason I'm calling out tenure and churn differently Is because some apps are so cyclical and seasonal.”

“The one that scares me and also excites me is churn. ... I don't say growth, it's churn, for sure.”

“Churn. For sure. That's our North Star. We care so deeply about churn. And like, honestly, like, I know taking it back to you and micro acquired, like a lot of these companies are very small. And if you just, if you have a sticky product, the likelihood of bui…”

“Churn is only 2.8% since COVID and that includes businesses... Monthly... And that includes businesses that we lost to COVID. So if you take those businesses out, you know you know, those businesses who didn't survive COVID, You know, it's sub one percent.”

“If you're selling to consumers, and you're charging nine dollars a month, and your churn is really high, you're gonna plateau pretty quick, even in a big market.”

“So we have a high churn. It was like nine to 10%. Now we've got lower it's getting closer to eight percent because we launched a freemium plan. That was three months ago. So with freemium, because people have more time to actually experience the product, the c…”

“Around six percent. 5.5 to 6.5.”

“It's on the lower end of the benchmark for which, you know, is between three and seven percent for reference. So we are on the lower end of that.”

“Even if the customer is just renewing for one extra month, as long as they're renewing at the full ARR value, there shouldn't be any churn.”

“How, how we typically look at it is if there's a temporary reduction for a short period of time, let's say within, within the six month period, as long as at the end of that period, the customer is, is effectively renewing the full amount and kind of go get, g…”

“In our case, we have different timing across different business units. One of our business units uses three months. One of our business units uses 30 days. And the other one is more of a real time whether we take, take churn on it or not, and then classify it …”

“And unfortunately there isn't right now, you know, Gemini accept the counted principles for how to define churn. So I think it's going to be one of those things that as more and more businesses become cloud orientated, SAS orientated, ultimately customer succe…”

“Net dollar retention, which I think is actually a more effective way to get at what churn is trying to measure.”

“In the VC side, frankly, I don't see as much recalculation, but when you meet PE people, they will literally take all your financials and just recalculate everything. You know, you're going to say your churn is, you know, only 10%. They're like, well, we'll fi…”

“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.”

“If you're churning out 10, 12, 15% a month, that's the number one problem. That's what you have to fix before you do anything else.”

“When we took the company back, churn was at about seven percent, and I think now we're sitting at about 3.2%.”

“The greatest churn happens in those first few months after you've sold something, because you haven't delivered on that promise.”

“So we measure adoption, and we measure adoption three months from sale, six months from sale, nine months from sale. If you're not 85% or so consumed of the services that you purchased, Then we got alarm bells going off and trying to figure out how to rectify …”

“By being responsible for churn, they're gonna do what they can to sell into the right ICP that's not gonna churn, and keep that customer whole so that they have to sell less new bookings.”

“It's still just below one percent on monthly.”

“Yeah, around the five percent mark.”

“Yeah, churn's still the same.”

“We have it. It's significantly less. I mean, it's about one percent maybe, maybe a little bit higher, but.”

“NPS is really great because it helps you predict where churn is. It's, it, you know, if you have, ah, detractors, it's really, it helps you identify who's gonna churn. Advocacy really helps drive, you know, this is, would you recommend this product or service.…”

“I don't like the churn metric for looking at this. A lot of people use that because it's easier to calculate. But basically churn is not cohort based. Renewal is cohort based.”

“Churn is .8%.”

“I think personally that support in this business is basically the way to be churned.”

“So right now we, our churn is about 1.5%, a little under 1.5% on a monthly basis.”

“And then I do every two weeks I do a webinar as well for our members, which is just open Q and a, as well as exploring and showing them the new features that released that last month. And it's also helps reduce churn is to get people to understand that, Hey, b…”