06/19/2023, 10:28 AM
Do these calculations make sense? Let’s do some math and see the financial sense of reducing churn. Currently, the average churn rate in the SaaS industry is around 6-8%. Let's assume you are at an 8% churn. For a software solution costing $100 per user per month and a user base of 1,000, that's $96,000 of lost revenue every year. Add in the cost of customer acquisition to replace these churned users, and the numbers start to add up even more. But let's picture this. If, through our data-driven A/B testing approach, you could reduce your churn rate by just 2%, bringing it down to 6%, that's a 25% reduction in lost customers. This translates to saving $24,000 each year on lost revenue alone.


06/22/2023, 4:26 AM
Yes, that seems right
2% of 100,000/month is 2,000/month or 24k/year