A couple of years ago, a SaaS client of ours was gaining traction fast. New users were signing up steadily, the sales team was energized, and the buzz around the product was growing.

But behind the scenes, revenue was stalling.

The culprit? Churn.

Too many customers were quietly slipping away. As the CEO put it:
“We’re filling a leaky bucket.”

That’s when they started tracking churn rate, the percentage of customers lost over a given period, and found it was sitting at 18%, nearly triple the industry average of 5 to 7%.

It was a wake-up call. And it sparked a six-month turnaround.

What the numbers revealed and what they did about it

Month 1
Churn at 18%. Customer feedback revealed frustration with the steep learning curve and lack of onboarding.

Month 2
They introduced guided tutorials. Churn dropped to 12%.

Month 4
They rolled out personalized outreach to at-risk users. Churn dropped again to 8%.

Month 6
They launched key integrations (Slack, Google Workspace). Churn hit 5%.

Every step was grounded in data. Every decision targeted a real point of friction.
By month six, they weren’t just keeping customers—they were building loyalty.

What changed when churn dropped

Revenue became more predictable. With fewer cancellations, monthly recurring revenue stabilized.
Customer acquisition got easier. The team no longer had to constantly replace lost users.
Reputation improved. Happy customers referred others, fueling organic growth.

Within a year, the business became leaner, healthier, and ready to scale.

How to calculate churn rate

Churn rate = (Customers lost ÷ Customers at start) × 100

Example:
Customers at start: 1,000
Customers lost: 50
Churn rate = (50 ÷ 1,000) × 100 = 5%

Why churn rate matters no matter your industry

Churn rate isn’t just for SaaS. It shows you whether your product or service is delivering enough value to keep customers coming back.

If customers are leaving, it’s not a failure. It’s feedback.
And if you track it, learn from it, and act on it, you’ll uncover the exact improvements that drive long-term growth.

Small improvements in retention often lead to big gains in revenue, margin, and peace of mind.

Not sure where to start?

If you’re seeing some customer turnover but aren’t sure what’s normal or how to fix it, our team can help you make sense of your numbers and identify next steps.

Schedule a consultation to talk through what’s happening and where you might focus your attention next. No pressure, just clarity.