The Three Churn Mitigation Strategies of SaaS Startups

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tomtunguz.comThe Three Churn Mitigation Strategies of SaaS Startups

Every SaaS business suffers from churn. If churn isn’t managed properly, the lost revenue from churned customers offsets new revenue and the business flat-lines or suffers negative revenue growth. I’ve seen startups employ three patterns for offsetting churn: acquiring new customers faster, upselling existing customers to buy more software, or structuring pricing to grow with customers.

Each strategy requires different levels of investment but achieves similar results. These strategies are often deployed in addition to a customer success team, which require their own investment.

 

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photo CC by Stefan Erschwendner

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