Today, Lauren Bahorich, Venture Partner with GST shares with us how she and the GST team advise Growing B2B SaaS Companies on the manifold ways to increase revenue.
Increasing Revenue: Identifying Churn
Churn is a revenue killer. You already spent the S&M cost to acquire that customer and then they churn cutting off a source of cheap, recurring revenue. A high churn rate is also a red flag to potential buyers; it alerts a buyer that at least some aspects of your product fall short of expectations and work needs to be done back at the drawing board to get the product/market fit and value proposition aligned.
To some extent, however, churn will occur. GST recommends putting in place a churn identification plan to be used as a predictive tool. By having a system to predict customers who are at risk of churning, you can proactively engage them rather than waiting to be reactive. With proactive engagement, GST believes you can reduce churn.
Creating a Churn Identification Plan is an involved process. It takes brainstorming, creating hypotheses, and then testing those hypotheses to identify churn risk factors. Then you must create a process to mitigate those identified risk factors. GST is able to leverage our SaaS experience to direct you through this process and deliver an executable churn identification plan. Please reach out today.
As always, we love hearing from you as to what you're experiencing as you drive growth for your company; please reach out below.
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