It can be a bit confusing at first, because only those customers who are replaced in the database are part of the churn rate. One of the first things people tend to do when looking at a company's analysis is to look at the net growth rate and churn rate. But as with everything else, these metrics alone don't offer much insight . In fact, there are two metrics that can be very useful when evaluating them alongside the churn rate of a SaaS company. These are ARPU and ARCPS: ARPU: Although it is a metric that is both loved and hated, the truth is that it can be very useful for benchmarking. ARCPS: This is the average revenue per subscription. So it is revenue turnover divided by subscription turnover. When analyzing all the metrics together, the context must be taken into account.
From this, conclusions will be drawn based petroleum manufacturers mailing leads on the digital marketing strategy being implemented. For example, sometimes a higher customer churn rate isn't necessarily a bad thing. Especially if you're focusing on attracting higher-paying customers and you notice that your ARPU is also higher. Tips to reduce customer churn Customer retention The goal of the following tips to reduce customer churn in SaaS companies is, fundamentally, to retain users. The goal is to attract new customers, but without causing the older ones to leave. 1.- Have a good customer loyalty strategy One of the top tricks to reducing customer churn is to build loyalty around your company . That’s why having a deep understanding of your customers and their needs is so important. The ideal is to gather a lot of information about them and establish good two-way communication. Ask your customers about their needs and keep in close contact with them .