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The cost of doing nothing
Churn is not a percentage on a slide. It is money leaving your account every month. Put in your numbers and see the real figure.
Your numbers
Target for SaaS: under 5% consumer, under 2% B2B.
Monthly loss statement
Money lost this month $2,500
Projected annual loss $34,246
That is money that should already be sitting in your bank account.
Book a teardownWhat this actually means
1. The leaky bucket
With a 5% churn rate, you have to replace 5% of your customers every month just to stay flat. You're running on a treadmill.
2. Valuation killer
Investors look at retention first. Losing this much annually slashes your valuation by 5 to 10 times that amount.
3. The fix
Most churn happens in the first three days. Fixing onboarding is the highest-ROI thing you can do this week.
Read: fix my churn
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