How to Tell Whether You’re Experiencing Preventable Churn

Preventable churn is hard to see, creeping around at the edges of day-to-day business and eating up revenue. It’s tricky to catch because:

  • Every SaaS (Software as a Service) company expects to experience some level of churn
  • Customers churning out don’t directly affect the flow of operations
  • Once customers are lost, it can be difficult to find out whether the churn could have been prevented

Most companies have figured out how to fight passive, or involuntary, churn due to failed credit card payments.

But what about the other customers who disappear, despite these efforts? You know your churn rate; every company should. Calculating how much of that churn rate is preventable, however, can be difficult.

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