High churn rates in SaaS businesses are

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Customer churn rate is a key metric because it directly impacts a company's recurring revenue and growth potential.



Key metrics for measuring churn include customer churn rate , revenue churn rate , and lifetime value (LTV) . Customer churn rate is calculated by dividing the number of customers that churn australia business fax list a period by the total number of customers at the beginning of that period. Revenue churn rate takes into account the monthly recurring revenue (MRR) lost from these customers.

High churn rates in SaaS businesses are often caused by several common reasons:

Poor customer fit, leading to product dissatisfaction.
Inadequate customer onboarding, leading to a lack of understanding of the product’s full capabilities.
Lack of perceived value, users don’t believe the software meets their needs or justifies its cost.
The Role of Customer Onboarding in Reducing Churn
Customer onboarding is the first line of defense against churn. It is the process of bringing in new users and acclimating them to your SaaS platform. A solid onboarding process can significantly impact customer retention. When customers understand the value of the product and how to use it effectively, they are less likely to churn. Through a series of strategic training and support steps, users can become proficient in using the software, increasing t