What Is Churn & How To Reduce It In Your Startup

in this video i'm going to define churn in this video i'm going to define churn and talk about how to reduce it in your and talk about how to reduce it in your and talk about how to reduce it in your startup i'm going to cover the why the startup i'm going to cover the why the startup i'm going to cover the why the what the when and how so you can not what the when and how so you can not what the when and how so you can not only understand it but also reduce it if only understand it but also reduce it if only understand it but also reduce it if you stick around to the end of the you stick around to the end of the you stick around to the end of the episode i'll share a video case study of episode i'll share a video case study of episode i'll share a video case study of how i reduced churn in my own startup by how i reduced churn in my own startup by how i reduced churn in my own startup by finding product market fit i'm rob finding product market fit i'm rob finding product market fit i'm rob walling a startup founder with multiple walling a startup founder with multiple walling a startup founder with multiple exits author of three books about exits author of three books about exits author of three books about building startups an investor in more building startups an investor in more building startups an investor in more than 100 companies as i mentioned at the than 100 companies as i mentioned at the than 100 companies as i mentioned at the top i'm going to cover four areas of top i'm going to cover four areas of top i'm going to cover four areas of churn and we're going to start with the churn and we're going to start with the churn and we're going to start with the why really the question is why learn why really the question is why learn why really the question is why learn about churn why is it important to know about churn why is it important to know about churn why is it important to know your churn and to do that i have to back your churn and to do that i have to back your churn and to do that i have to back up and define it right a basic up and define it right a basic up and define it right a basic definition of churn is the number or the definition of churn is the number or the definition of churn is the number or the percentage of customers that you lose percentage of customers that you lose percentage of customers that you lose each month or the percentage of revenue each month or the percentage of revenue each month or the percentage of revenue that you lose each month depending on that you lose each month depending on that you lose each month depending on how we define it this is usually how we define it this is usually how we define it this is usually calculated monthly calculated monthly calculated monthly and the reason that knowing your churn and the reason that knowing your churn and the reason that knowing your churn is important is because churn is the is important is because churn is the is important is because churn is the death of sas if your churn is too high death of sas if your churn is too high death of sas if your churn is too high it is virtually impossible to grow and it is virtually impossible to grow and it is virtually impossible to grow and you will plateau so when most sas you will plateau so when most sas you will plateau so when most sas companies anything higher than like five companies anything higher than like five companies anything higher than like five percent a month is not great it depends percent a month is not great it depends percent a month is not great it depends if you're really going after consumers if you're really going after consumers if you're really going after consumers or you have a low priced product you can or you have a low priced product you can or you have a low priced product you can be in that five to seven percent range be in that five to seven percent range be in that five to seven percent range but consider like nine percent churn but consider like nine percent churn but consider like nine percent churn that essentially means that you have to that essentially means that you have to that essentially means that you have to replace your entire customer base every replace your entire customer base every replace your entire customer base every year it's massive it's a huge amount of year it's massive it's a huge amount of year it's massive it's a huge amount of effort to replace customers after you effort to replace customers after you effort to replace customers after you spend all the time spend all the time spend all the time finding them getting them to your finding them getting them to your finding them getting them to your website convincing them to buy nurturing website convincing them to buy nurturing website convincing them to buy nurturing them and then providing the support and them and then providing the support and them and then providing the support and then if they churn you lose that revenue then if they churn you lose that revenue then if they churn you lose that revenue stream now that we've covered the why stream now that we've covered the why stream now that we've covered the why let's look at the what what is churn i'm

let's look at the what what is churn i'm let's look at the what what is churn i'm going to give you essentially two going to give you essentially two going to give you essentially two definitions of the most common types of definitions of the most common types of definitions of the most common types of churn that we look at in sas by far the churn that we look at in sas by far the churn that we look at in sas by far the most important is revenue churn revenue most important is revenue churn revenue most important is revenue churn revenue churn is the percentage of your monthly churn is the percentage of your monthly churn is the percentage of your monthly recurring revenue that you lose in a recurring revenue that you lose in a recurring revenue that you lose in a given month or if you're looking given month or if you're looking given month or if you're looking annually which most bootstrapped and annually which most bootstrapped and annually which most bootstrapped and mostly bootstrap sas companies do not mostly bootstrap sas companies do not mostly bootstrap sas companies do not but if you're looking annually then you but if you're looking annually then you but if you're looking annually then you know you could calculate it that way too know you could calculate it that way too know you could calculate it that way too and in the house section we'll look at and in the house section we'll look at and in the house section we'll look at exactly how to calculate it but realize exactly how to calculate it but realize exactly how to calculate it but realize that the percentage of mrr that you lose that the percentage of mrr that you lose that the percentage of mrr that you lose in a given month is your gross revenue in a given month is your gross revenue in a given month is your gross revenue churn churn churn and then there's something called and then there's something called and then there's something called customer churning you might hear it customer churning you might hear it customer churning you might hear it called logo churn and this is the called logo churn and this is the called logo churn and this is the percentage of customers that you lose in percentage of customers that you lose in percentage of customers that you lose in a given month you might ask which of a given month you might ask which of a given month you might ask which of these is more important and you may have these is more important and you may have these is more important and you may have already heard me say revenue churn is already heard me say revenue churn is already heard me say revenue churn is more important because if you have 10 more important because if you have 10 more important because if you have 10 customers and one is paying you a customers and one is paying you a customers and one is paying you a thousand dollars thousand dollars thousand dollars and nine are paying you ten dollars a and nine are paying you ten dollars a and nine are paying you ten dollars a month if one customer cancels that's ten month if one customer cancels that's ten month if one customer cancels that's ten percent customer churn but if it's that percent customer churn but if it's that percent customer churn but if it's that first customer paying you a thousand first customer paying you a thousand first customer paying you a thousand dollars it's almost you know it's 90 dollars it's almost you know it's 90 dollars it's almost you know it's 90 something percent of your revenue so you something percent of your revenue so you something percent of your revenue so you really want to look at revenue because really want to look at revenue because really want to look at revenue because your customer count is a lot less your customer count is a lot less your customer count is a lot less important than your actual mrr one last important than your actual mrr one last important than your actual mrr one last thing on definitions realize that the thing on definitions realize that the thing on definitions realize that the numbers that i just indicated they are numbers that i just indicated they are numbers that i just indicated they are gross churn right gross revenue term gross churn right gross revenue term gross churn right gross revenue term gross customer churn but there is a way gross customer churn but there is a way gross customer churn but there is a way to have negative churn in your business to have negative churn in your business to have negative churn in your business and that is when you have expansion and that is when you have expansion and that is when you have expansion revenue that's when someone is on a revenue that's when someone is on a revenue that's when someone is on a pricing plan and if they add more seats pricing plan and if they add more seats pricing plan and if they add more seats or they add more subscribers they get or they add more subscribers they get or they add more subscribers they get bumped up to a higher pricing plan and bumped up to a higher pricing plan and bumped up to a higher pricing plan and so that same customer is now paying you so that same customer is now paying you so that same customer is now paying you more money that's called expansion more money that's called expansion more money that's called expansion revenue because it's revenue you get revenue because it's revenue you get revenue because it's revenue you get from someone's usage of your tool from someone's usage of your tool from someone's usage of your tool expanding and expansion revenue is

expanding and expansion revenue is expanding and expansion revenue is essentially negative churn if you think essentially negative churn if you think essentially negative churn if you think about it instead of losing revenue from about it instead of losing revenue from about it instead of losing revenue from your customers you are actually gaining your customers you are actually gaining your customers you are actually gaining it from the existing customers and if it from the existing customers and if it from the existing customers and if you get enough expansion revenue you can you get enough expansion revenue you can you get enough expansion revenue you can actually have net negative churn which actually have net negative churn which actually have net negative churn which is where your expansion revenue is where your expansion revenue is where your expansion revenue outweighs your gross revenue churn it's outweighs your gross revenue churn it's outweighs your gross revenue churn it's an incredible golden ticket i call it an incredible golden ticket i call it an incredible golden ticket i call it the cheat code of sas because when you the cheat code of sas because when you the cheat code of sas because when you have net negative churn it means that have net negative churn it means that have net negative churn it means that you can add zero customers in a given you can add zero customers in a given you can add zero customers in a given month and your business still expands it month and your business still expands it month and your business still expands it still grows and a business like that is still grows and a business like that is still grows and a business like that is just an incredible flywheel of growth just an incredible flywheel of growth just an incredible flywheel of growth next let's talk about when when should next let's talk about when when should next let's talk about when when should you look at churn always kind of i mean you look at churn always kind of i mean you look at churn always kind of i mean honestly you should be looking at churn honestly you should be looking at churn honestly you should be looking at churn from the day that you start your sas from the day that you start your sas from the day that you start your sas company the hard part is in the early company the hard part is in the early company the hard part is in the early days when you have three customers and days when you have three customers and days when you have three customers and one churns you have 33 churn the numbers one churns you have 33 churn the numbers one churns you have 33 churn the numbers don't actually mean that much so it don't actually mean that much so it don't actually mean that much so it doesn't start making sense until you doesn't start making sense until you doesn't start making sense until you have 50 customers or 100 customers to have 50 customers or 100 customers to have 50 customers or 100 customers to really start looking at churn but the really start looking at churn but the really start looking at churn but the idea is that before you have product idea is that before you have product idea is that before you have product market fit you can have really high market fit you can have really high market fit you can have really high churn and the normal tactics that we churn and the normal tactics that we churn and the normal tactics that we might use to counter churn that we're might use to counter churn that we're might use to counter churn that we're going to look at later in the house going to look at later in the house going to look at later in the house section those don't work because the section those don't work because the section those don't work because the problem is you haven't built something problem is you haven't built something problem is you haven't built something people want so before product market fit people want so before product market fit people want so before product market fit your churn can be all over the place and your churn can be all over the place and your churn can be all over the place and can be extremely high and really usually can be extremely high and really usually can be extremely high and really usually the core cause is you just haven't built the core cause is you just haven't built the core cause is you just haven't built something people want and in terms of something people want and in terms of something people want and in terms of when to look at churn when i've run my when to look at churn when i've run my when to look at churn when i've run my sas companies i've looked at churn on sas companies i've looked at churn on sas companies i've looked at churn on usually about a weekly basis sometimes a usually about a weekly basis sometimes a usually about a weekly basis sometimes a daily basis i know some founders only daily basis i know some founders only daily basis i know some founders only look at it every month and i think if look at it every month and i think if look at it every month and i think if your business is more mature and more your business is more mature and more your business is more mature and more stable that's okay but especially in the stable that's okay but especially in the stable that's okay but especially in the early days you really do need to be on early days you really do need to be on early days you really do need to be on top of this because you need to see if top of this because you need to see if top of this because you need to see if particular cohorts are churning and

particular cohorts are churning and particular cohorts are churning and we'll look at that a little later about we'll look at that a little later about we'll look at that a little later about segmenting churn but i think churn segmenting churn but i think churn segmenting churn but i think churn should be calculated on an ongoing basis should be calculated on an ongoing basis should be calculated on an ongoing basis in real time that should always be done in real time that should always be done in real time that should always be done whether you're using a third-party whether you're using a third-party whether you're using a third-party provider that is on your your payment provider that is on your your payment provider that is on your your payment provider account calculating that churn provider account calculating that churn provider account calculating that churn or you have a custom dashboard you or you have a custom dashboard you or you have a custom dashboard you should be able to look up your trend at should be able to look up your trend at should be able to look up your trend at any time without having to calculate it any time without having to calculate it any time without having to calculate it and now let's dig into the meat of it and now let's dig into the meat of it and now let's dig into the meat of it the how how to actually calculate churn the how how to actually calculate churn the how how to actually calculate churn and then how to improve it if you're and then how to improve it if you're and then how to improve it if you're having trouble with it so the way to having trouble with it so the way to having trouble with it so the way to calculate revenue churn is to take the calculate revenue churn is to take the calculate revenue churn is to take the total mrr that canceled this month so if total mrr that canceled this month so if total mrr that canceled this month so if you lost 500 you lost 500 you lost 500 in total mrr this month to churn and you in total mrr this month to churn and you in total mrr this month to churn and you divide that by the starting mrr amount divide that by the starting mrr amount divide that by the starting mrr amount so if you had ten thousand dollars in so if you had ten thousand dollars in so if you had ten thousand dollars in mrr at the beginning of the month and mrr at the beginning of the month and mrr at the beginning of the month and you had five hundred dollars and you had five hundred dollars and you had five hundred dollars and canceled mrr during the month you have canceled mrr during the month you have canceled mrr during the month you have five percent gross revenue churn and five percent gross revenue churn and five percent gross revenue churn and similarly you can calculate customer similarly you can calculate customer similarly you can calculate customer churn by taking the number of customers churn by taking the number of customers churn by taking the number of customers who cancel in a given month and divide who cancel in a given month and divide who cancel in a given month and divide that by the number of customers you had that by the number of customers you had that by the number of customers you had at the beginning of the month again that at the beginning of the month again that at the beginning of the month again that is a much less important number to me is a much less important number to me is a much less important number to me personally but it is something that a personally but it is something that a personally but it is something that a lot of tools calculate and you can keep lot of tools calculate and you can keep lot of tools calculate and you can keep an eye on it and if you want to have an eye on it and if you want to have an eye on it and if you want to have some nerd alert fun some nerd alert fun some nerd alert fun segment your churn by a few different segment your churn by a few different segment your churn by a few different areas segment by pricing tier segment by areas segment by pricing tier segment by areas segment by pricing tier segment by customer type and segment by cohort or customer type and segment by cohort or customer type and segment by cohort or by age of customer and look at those by age of customer and look at those by age of customer and look at those look at how different they are almost look at how different they are almost look at how different they are almost always segmenting by pricing tier you'll always segmenting by pricing tier you'll always segmenting by pricing tier you'll see the people who pay the least amount see the people who pay the least amount see the people who pay the least amount of money churn the most and the fun part of money churn the most and the fun part of money churn the most and the fun part of doing customer type and the age you of doing customer type and the age you of doing customer type and the age you know the cohort of the customer is you

know the cohort of the customer is you know the cohort of the customer is you can really get an idea of how long can really get an idea of how long can really get an idea of how long people typically stick around and if you people typically stick around and if you people typically stick around and if you had a certain batch that came from let's had a certain batch that came from let's had a certain batch that came from let's say a bunch of ads you ran you can see say a bunch of ads you ran you can see say a bunch of ads you ran you can see if the churn is higher or lower or you if the churn is higher or lower or you if the churn is higher or lower or you can see if certain industries really get can see if certain industries really get can see if certain industries really get more value out of your tool than others more value out of your tool than others more value out of your tool than others now we're going to dive into how to now we're going to dive into how to now we're going to dive into how to reduce churn of course there are a lot reduce churn of course there are a lot reduce churn of course there are a lot of ways to do it and we do have to of ways to do it and we do have to of ways to do it and we do have to separate it to before product market fit separate it to before product market fit separate it to before product market fit and after and product market fit is not and after and product market fit is not and after and product market fit is not a binary but it is a spectrum and once a binary but it is a spectrum and once a binary but it is a spectrum and once you have a decent amount of product you have a decent amount of product you have a decent amount of product market fit there are some tactics that market fit there are some tactics that market fit there are some tactics that you can implement that can help you you can implement that can help you you can implement that can help you reduce it but before product market fit reduce it but before product market fit reduce it but before product market fit i'm gonna be honest this is one of the i'm gonna be honest this is one of the i'm gonna be honest this is one of the hardest problems in entrepreneurship if hardest problems in entrepreneurship if hardest problems in entrepreneurship if churn is high and you're early it's very churn is high and you're early it's very churn is high and you're early it's very likely because you haven't built likely because you haven't built likely because you haven't built something people want so you need to go something people want so you need to go something people want so you need to go do that the hard part is figuring out do that the hard part is figuring out do that the hard part is figuring out how to do that there is no blueprint how to do that there is no blueprint how to do that there is no blueprint right there is no book there are some right there is no book there are some right there is no book there are some loose frameworks like customer loose frameworks like customer loose frameworks like customer development which say talk to your development which say talk to your development which say talk to your customers and build what they need but customers and build what they need but customers and build what they need but that isn't as easy as it sounds and that isn't as easy as it sounds and that isn't as easy as it sounds and frankly it's not often i see the same frankly it's not often i see the same frankly it's not often i see the same path to product market fit done the same path to product market fit done the same path to product market fit done the same way twice even by the same founder it's way twice even by the same founder it's way twice even by the same founder it's always this journey that you have to always this journey that you have to always this journey that you have to wander and certainly talking to your wander and certainly talking to your wander and certainly talking to your customers is one way but you also have customers is one way but you also have customers is one way but you also have to have a vision for what you're to have a vision for what you're to have a vision for what you're building and you also have to try not to building and you also have to try not to building and you also have to try not to be too clever and try to build a new be too clever and try to build a new be too clever and try to build a new category unless you have 10 million category unless you have 10 million category unless you have 10 million dollars of venture funding in the bank dollars of venture funding in the bank dollars of venture funding in the bank account and you have years that you want account and you have years that you want account and you have years that you want to invest into it so getting to product to invest into it so getting to product to invest into it so getting to product market fit is where i see most sas market fit is where i see most sas market fit is where i see most sas startups fail and often it's a longer startups fail and often it's a longer startups fail and often it's a longer road than you want it to be and there is road than you want it to be and there is road than you want it to be and there is no exact blueprint as i've already said no exact blueprint as i've already said no exact blueprint as i've already said but for a video case study of how i did but for a video case study of how i did but for a video case study of how i did exactly that with the last startup i did exactly that with the last startup i did exactly that with the last startup i did it was called drip stick around to the

it was called drip stick around to the it was called drip stick around to the end of this episode and i will mention end of this episode and i will mention end of this episode and i will mention where that is so now let's move on to where that is so now let's move on to where that is so now let's move on to reducing churn if you have product reducing churn if you have product reducing churn if you have product market fit meaning that a group of market fit meaning that a group of market fit meaning that a group of customers gets a lot of value out of customers gets a lot of value out of customers gets a lot of value out of your product and you're finding you know your product and you're finding you know your product and you're finding you know some new customers on somewhat regular some new customers on somewhat regular some new customers on somewhat regular basis so then it's what we call blocking basis so then it's what we call blocking basis so then it's what we call blocking and tackling right it's getting down and and tackling right it's getting down and and tackling right it's getting down and reading support tickets and looking at reading support tickets and looking at reading support tickets and looking at exit surveys for the signs of why people exit surveys for the signs of why people exit surveys for the signs of why people are churning it's determining why are are churning it's determining why are are churning it's determining why are they leaving interviewing customers is they leaving interviewing customers is they leaving interviewing customers is another good way right for deeper another good way right for deeper another good way right for deeper information information information usually churn falls into a few usually churn falls into a few usually churn falls into a few categories alright so there's fixable categories alright so there's fixable categories alright so there's fixable turn and there's unfixable churn so turn and there's unfixable churn so turn and there's unfixable churn so fixable churn includes things like they fixable churn includes things like they fixable churn includes things like they never got set up or you're lacking a never got set up or you're lacking a never got set up or you're lacking a feature or key features they need your feature or key features they need your feature or key features they need your pricing is too high or your product is pricing is too high or your product is pricing is too high or your product is frustrating to use maybe your ux is frustrating to use maybe your ux is frustrating to use maybe your ux is crappy you're having performance issues crappy you're having performance issues crappy you're having performance issues or lastly maybe it's that they don't see or lastly maybe it's that they don't see or lastly maybe it's that they don't see the value this is related to pricing but the value this is related to pricing but the value this is related to pricing but it can be different you know even if you it can be different you know even if you it can be different you know even if you were a dollar a month some folks just were a dollar a month some folks just were a dollar a month some folks just don't see value in an app anymore that don't see value in an app anymore that don't see value in an app anymore that they signed up for so those were the they signed up for so those were the they signed up for so those were the fixable types and i'll go back through fixable types and i'll go back through fixable types and i'll go back through them now and talk through briefly how i them now and talk through briefly how i them now and talk through briefly how i would approach fixing each of those for would approach fixing each of those for would approach fixing each of those for the unfixable they're unfixable there the unfixable they're unfixable there the unfixable they're unfixable there isn't an easy way to get around them isn't an easy way to get around them isn't an easy way to get around them this is internal company politics some this is internal company politics some this is internal company politics some companies also go out of business that's companies also go out of business that's companies also go out of business that's another way that they churn and there another way that they churn and there another way that they churn and there again there's not much to be done about again there's not much to be done about again there's not much to be done about that and other times companies cancel that and other times companies cancel that and other times companies cancel because they just no longer need the because they just no longer need the because they just no longer need the tool if they were doing a bunch of tool if they were doing a bunch of tool if they were doing a bunch of social media marketing and you're a social media marketing and you're a social media marketing and you're a social media posting tool and then they social media posting tool and then they social media posting tool and then they decide we're not going to do social decide we're not going to do social decide we're not going to do social media anymore they just don't need your media anymore they just don't need your media anymore they just don't need your tool anymore and there's no easy way to tool anymore and there's no easy way to tool anymore and there's no easy way to fix that so now let's briefly walk fix that so now let's briefly walk fix that so now let's briefly walk through the fixable churn causes through the fixable churn causes through the fixable churn causes and talk about briefly how i would

and talk about briefly how i would and talk about briefly how i would approach them so the first is they never approach them so the first is they never approach them so the first is they never got set up and so what would i do there got set up and so what would i do there got set up and so what would i do there well i'd be looking do i have in-app well i'd be looking do i have in-app well i'd be looking do i have in-app onboarding that helps walk them through onboarding that helps walk them through onboarding that helps walk them through do i have an email sequence that do i have an email sequence that do i have an email sequence that welcomes them and shows them the steps welcomes them and shows them the steps welcomes them and shows them the steps to get on board do i need to be a to get on board do i need to be a to get on board do i need to be a customer success rep or hire one to customer success rep or hire one to customer success rep or hire one to reach out proactively to get people on reach out proactively to get people on reach out proactively to get people on board the second fixable reason is board the second fixable reason is board the second fixable reason is lacking a feature or features i think lacking a feature or features i think lacking a feature or features i think this one's pretty obvious if that this one's pretty obvious if that this one's pretty obvious if that feature is within your roadmap or within feature is within your roadmap or within feature is within your roadmap or within your vision of where the product should your vision of where the product should your vision of where the product should go and you're losing a lot of people to go and you're losing a lot of people to go and you're losing a lot of people to it they're canceling you should probably it they're canceling you should probably it they're canceling you should probably build that feature or features now build that feature or features now build that feature or features now sometimes you get a one-off cancellation sometimes you get a one-off cancellation sometimes you get a one-off cancellation and they want some completely random and they want some completely random and they want some completely random feature that you're never gonna build feature that you're never gonna build feature that you're never gonna build and that's okay you're just not gonna and that's okay you're just not gonna and that's okay you're just not gonna fix that type of churn in the future fix that type of churn in the future fix that type of churn in the future sometimes someone churns and says your sometimes someone churns and says your sometimes someone churns and says your price is too high this is a tough one price is too high this is a tough one price is too high this is a tough one because i think most startups are because i think most startups are because i think most startups are probably underpriced and you're always probably underpriced and you're always probably underpriced and you're always going to get someone giving you negative going to get someone giving you negative going to get someone giving you negative feedback about your price if no one's feedback about your price if no one's feedback about your price if no one's complaining about your price you're complaining about your price you're complaining about your price you're probably underpriced but if you start probably underpriced but if you start probably underpriced but if you start losing a lot of customers to a losing a lot of customers to a losing a lot of customers to a competitor that has come up and has competitor that has come up and has competitor that has come up and has built the same feature set and they are built the same feature set and they are built the same feature set and they are underpriced and they really are eating underpriced and they really are eating underpriced and they really are eating your lunch yeah then maybe i'd consider your lunch yeah then maybe i'd consider your lunch yeah then maybe i'd consider well can we add more value do we need to well can we add more value do we need to well can we add more value do we need to lower our prices you know there are lower our prices you know there are lower our prices you know there are times it's pretty rare most of the time times it's pretty rare most of the time times it's pretty rare most of the time someone complaining about price is kind someone complaining about price is kind someone complaining about price is kind of a one-off or maybe they're not your of a one-off or maybe they're not your of a one-off or maybe they're not your best customer that's the other thing to best customer that's the other thing to best customer that's the other thing to look at is if a bunch of your customers look at is if a bunch of your customers look at is if a bunch of your customers cancel because the price but a bunch cancel because the price but a bunch cancel because the price but a bunch don't and they are different industries don't and they are different industries don't and they are different industries or you know somehow they have different or you know somehow they have different or you know somehow they have different budgets go after those customers that budgets go after those customers that budgets go after those customers that aren't complaining about your price the aren't complaining about your price the aren't complaining about your price the next reason is that you're if your app next reason is that you're if your app next reason is that you're if your app is frustrating to use because it has bad is frustrating to use because it has bad is frustrating to use because it has bad ux or it's slow or you got hacked it's ux or it's slow or you got hacked it's ux or it's slow or you got hacked it's under performance this one is obvious under performance this one is obvious under performance this one is obvious how to fix it but it's it can be hard to

how to fix it but it's it can be hard to how to fix it but it's it can be hard to fix right you need to get some good fix right you need to get some good fix right you need to get some good engineers and designers and improve the engineers and designers and improve the engineers and designers and improve the app performance again easier said than app performance again easier said than app performance again easier said than done but if you're losing people over it done but if you're losing people over it done but if you're losing people over it then this should be something that you then this should be something that you then this should be something that you prioritize on your roadmap and lastly prioritize on your roadmap and lastly prioritize on your roadmap and lastly people who are canceling because they people who are canceling because they people who are canceling because they don't see the value of your product so don't see the value of your product so don't see the value of your product so this could be related to pricing but this could be related to pricing but this could be related to pricing but also what if you if you're charging a also what if you if you're charging a also what if you if you're charging a hundred dollars and then someone's gonna hundred dollars and then someone's gonna hundred dollars and then someone's gonna cancel and you say well even at five cancel and you say well even at five cancel and you say well even at five dollars is it worth it and you know if dollars is it worth it and you know if dollars is it worth it and you know if they just don't see the value it's not they just don't see the value it's not they just don't see the value it's not that they're not doing social media that they're not doing social media that they're not doing social media posting anymore but maybe they don't posting anymore but maybe they don't posting anymore but maybe they don't need the features you've built they just need the features you've built they just need the features you've built they just they figured out you know twitter built they figured out you know twitter built they figured out you know twitter built tweet scheduling into it and so now tweet scheduling into it and so now tweet scheduling into it and so now that's just it's just not as valuable that's just it's just not as valuable that's just it's just not as valuable right there are things like this that i right there are things like this that i right there are things like this that i i think are hard to fix but you can i think are hard to fix but you can i think are hard to fix but you can certainly look at are there additional certainly look at are there additional certainly look at are there additional features going back up to the the bullet features going back up to the the bullet features going back up to the the bullet above are there additional features that above are there additional features that above are there additional features that we can build that do make this product we can build that do make this product we can build that do make this product more valuable for that customer or that more valuable for that customer or that more valuable for that customer or that customer type in just a second i'm going customer type in just a second i'm going customer type in just a second i'm going to tell you about a video case study of to tell you about a video case study of to tell you about a video case study of how i reduce churn with my own startup how i reduce churn with my own startup how i reduce churn with my own startup but before that i want to tell you about but before that i want to tell you about but before that i want to tell you about the podcast i host called startups for the podcast i host called startups for the podcast i host called startups for the rest of us and every week for the the rest of us and every week for the the rest of us and every week for the past 12 years i've shipped a new episode past 12 years i've shipped a new episode past 12 years i've shipped a new episode we're on episode 615 and we're talking we're on episode 615 and we're talking we're on episode 615 and we're talking about all kinds of stuff related to sas about all kinds of stuff related to sas about all kinds of stuff related to sas to building to growing to starting it's to building to growing to starting it's to building to growing to starting it's very much in line with this youtube very much in line with this youtube very much in line with this youtube channel and i hope you check it out in channel and i hope you check it out in channel and i hope you check it out in spotify apple podcast google podcast or spotify apple podcast google podcast or spotify apple podcast google podcast or any place greater podcasts are served so any place greater podcasts are served so any place greater podcasts are served so if you want to check out the video case if you want to check out the video case if you want to check out the video case study i've referenced of how i reduced study i've referenced of how i reduced study i've referenced of how i reduced churn with my startup drip before churn with my startup drip before churn with my startup drip before product market fit because we had high product market fit because we had high product market fit because we had high churn we didn't have product market fit churn we didn't have product market fit churn we didn't have product market fit we figured out what to build so that we we figured out what to build so that we we figured out what to build so that we had a product that people loved people

had a product that people loved people had a product that people loved people really wanted and were willing to pay really wanted and were willing to pay really wanted and were willing to pay for and that's in a video on this for and that's in a video on this for and that's in a video on this channel called an inside story of channel called an inside story of channel called an inside story of self-funded sas growth it's from self-funded sas growth it's from self-funded sas growth it's from microcomp 2015 and i hope you check it microcomp 2015 and i hope you check it microcomp 2015 and i hope you check it out hope you enjoyed this video if you out hope you enjoyed this video if you out hope you enjoyed this video if you did it'd be amazing if you'd hit the did it'd be amazing if you'd hit the did it'd be amazing if you'd hit the like button subscribe to the channel and like button subscribe to the channel and like button subscribe to the channel and i'll see you in the next one [Music] [Music] uh uh uh [Music]