SaaS Churn Rate: Why It Matters (and What to Do about It)

Ever feel like you can’t keep up?

Practically everyone has felt like this one time or another. SaaS business owners have it especially tough.

Sometimes it feels like you’re on an endless treadmill. You’re running as hard as you can just to replace customers who slip through the cracks. And you can’t dare let up no matter how exhausted you are. Otherwise your business starts shrinking instead of growing like you need it to.

Getting ahead seems out of the question when you’re working as hard as you can just to stay even with all the people who are leaving.

Your SaaS churn rate, the percentage of customers (or recurring revenue) that leave your business over a specified duration, is a vital sign of your business. It’s one of the best metrics you can use to value your company and assess your performance.

Here’s why it matters—and how to keep your business healthy and profitable.

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