Churn is often referred to as the SaaS growth killer. Failing to retain customers, particularly high-value customers, has a significant negative impact on revenue that, if not addressed, can stifle growth and ultimately play a large role in forcing a company to close its doors.
Establishing ways to reduce and prevent churn has become a critical strategy for SaaS and other subscription-based companies because research is showing that retaining customers is actually more important to business success than acquiring new ones.
After all, increasing customer retention rates by 5% increases profits by 25% to 95%, and the cost of acquiring a new customer is anywhere from 5-25% more expensive than retaining an existing one.
This checklist is designed to help you retain a high-value customer that has expressed a desire to cancel their subscription, or is clearly at risk of cancelling soon according to their product engagement metrics. In other words, it is a last-ditch effort to retain a valuable customer.
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