What is Customer Churn and Why is it Significant?
Customer churn - the number of customers that a business loses in a given time - is major concern for any business. It’s an important metric that helps companies to timely identify potential problems and fix the underlying issues
Handling churn is not just about taking feedback from customers who canceled the subscription. There is a lot to it. For example, ‘churn prediction’ will help you predict who is going to cancel your product and help you stay in touch with the customer to understand any pain points. These tools also help automate sending discount coupons or displaying discount coupons on-screen when a customer tries to cancel the product.
Micro SaaS Ideas Around Customer Churn
1. Customer Churn Prediction
The easiest way for any SaaS with paid subscribers to make more money is by reducing the churn. Create a Micro SaaS solution that can help predict which users can churn based on their activity and usage of the SaaS application. A product like this can control the churn percentage and can improve revenue.
Also, let the SaaS owners choose a few parameters to define ‘about to churn’. For example, one of the possible parameters to assess churn could be -“user hasn’t logged into the tool for X number of days”. While some SaaS needs the users to log in every day and check, some SaaS doesn’t need every user to log in every day.
Other parameters could be, “is a user using API credits actively” etc. While there are some general parameters to assess ‘about to churn’, you should also let SaaS owners define an ‘about to churn customer’. Pro Report has notes on implementing this.
Other add-ons for a product like this could be ‘automated discounts’ for customers who would likely churn or automated emails to keep them warn and request feedback/improvements.
2. Churn Feedback Automation Tool
Create a tool that handles ‘Churn feedback’ for the SaaS businesses. The solution should have a simple GUI tool to design a simple feedback form and apply brand settings (like Brand color, Logo, etc). The tool should output a direct link or an embeddable script SaaS founders can integrate into their SaaS in the cancellation workflow. Any time, a user tries to cancel a subscription, this automated script will show a popup and ask for more info and feedback.
Alternately, the user could be directed to a link provided by your app. Before the user submits the feedback, the tool should be able to show some pre-configured discount coupons and asks if the customer is okay to continue with an X % of discount or so. This method reduces the churn to a great extent. Make sure your product is fully configurable with brand logo, brand color, adding/deleting discount coupons, feedback questions, etc.
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