In this episode of Business Systems Explored, we talk to Matt Goldman: Churn Buster CEO and co-host of Rocketship.fm.
We’ve looked at how churn can kill your SaaS company before on the Process Street blog…
But today we’ve had the pleasure of talking to someone who works entirely with churn and reducing its effects for tons of major SaaS companies.
Churn is the rate that customers cancel their subscriptions to your software. It can happen either because your product isn’t giving them enough value, or it can happen because of a failed payment method.
In fact, over half of total churn is because of an expired credit card or another technical payment issue…
Matt built Churn Buster to fight this particular type of revenue loss, and today he’s here to tell us all the secrets he’s learned along the way.
Links to listen
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Quote to tweet:
“It’s cheaper to retain a customer than it is to acquire one.” (tweet this)
- What is churn, and why is it important?
- The damage that failed credit cards can do to your business
- The voluntary and involuntary side of churn
- Monitoring key metrics to identify at-risk customers
- Why churn is the SaaS killer
- Cutting churn to exponentially increase lifetime value
- The broader impact of churn
- The complex stories behind every churned customer
- Finding the best contacts at companies to fix churn
- Using Help Scout to integrate MRR and LTV data into your support tickets
- How to build a system that kills churn
- Making sure customers 100% understand what will happen if they cancel
- Red flags in customer analytics
- A quick design tip for reducing cancellations
- The positive effects of turning off self-serve for your SaaS company
- Matt’s process for giving demos and managing leads
- How Churn Buster works differently from Stripe’s automated emails
- How to know which customers to call, and when
- Exactly when you should start experimenting with reducing churn at your company
- DIY churn busting tips for small companies
- Churn on freemium products, and how to beat it
- Can you reduce churn by adding friction to the cancellation process?
- The #1 most effective technique for reducing voluntary churn
- The power of a single required text field on the cancellation page
- How and when to email churned customers
- Resources Matt recommends to learn more about churn
- Managing negative customer reactions
- How customer expectations impact churn and doom your product
Tools & mentions:
- Churn Buster: https://churnbuster.io/
- Hookfeed: https://hookfeed.com/
- Stripe: https://stripe.com/
- Process Street: https://www.process.st/
- Mixpanel: https://mixpanel.com/
- Intercom: https://www.intercom.com/
- ChartMogul: https://chartmogul.com/
- Help Scout: https://www.helpscout.net/
- Close.io: https://close.io/
- Zapier: https://zapier.com/
- LessChurn: https://lesschurn.io/
- SaaStr: https://www.saastr.com/
- Sixteen Ventures: http://sixteenventures.com/
- Gainsight: http://www.gainsight.com/
- Tomasz Tungus: http://tomtunguz.com/
CEO and Co-Founder of Process Street. Sign-up for his free systems masterclass or find him on Twitter and LinkedIn.