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Customer churn is cancer for a SaaS company. Overlooking it has been the single biggest mistake our company made, and the closest we’ve ever been to going out of business.
Churn is a silent killer that slowly but surely will eat away your business.
You can cure it if you catch it early on, but if you let your customer churn problem go unchecked, it will kill your startup.
We learned this the hard way.
Let me give some context on how we found ourselves there: between 2015 and 2016 our company grew REALLY fast. We 5x’d our subscriptions in just 12 months and everyone was really excited.
In 2016 we raised the second part of our seed round, and it was the easiest money I’ve ever raised; it was obvious that we were onto something, and the diligence process with all of our investors went pretty smoothly. There was inevitable FOMO.
And I remember one investor came to us saying they were going to pass because our customer churn was too high. At that point, nobody paid much attention, and let me show you why.
