Article · 8 min read

11 Basic Tips to Lower Your Churn Rate

Jason Lemkin · SaaStr Free Beginner

Unfashionable and effective: name an owner per customer, segment CS by customer size, do not close deals you cannot support, make it easy to leave well. Also the clearest statement of when churn starts capping growth.

  • You barely notice high churn up to 2 to 3 million ARR; at 10 million it stops growth; at 20 million it can end the company.
  • Concrete habits: answer all tickets in under 5 minutes, do 6 customer calls a week, run a weekly webinar.
  • Selling deals you cannot service is worse than not closing them at all.
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It answers 2 questions

  1. How much churn is normal, and is mine bad?
  2. Our churn got noticeably worse this year. How do I run the fix as a leader?

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