State of Retention Report Webinar
Churnkey partnered with Saas.Group and Usersnap on an annual retention report which helps subscription companies make sense of industry trends and changes. Watch the Webinar here.
In SaaS, addressing churn is crucial for survival and growth. As we continue to move into a subscription-first economy, it’s critical to stay up to date with the latest trends in the industry.
That is why we collaborated with saas.group and Usersnap on our State of Retention 2024 Report. The report is so in-depth and full of extremely useful data that we held a webinar to review the results with Klaus-M. Schremser of UserSnap and Anna Nadeina of saas.group. They joined our Chief Product Officer, Scott Hurff, to discuss everything retention related for the last year.
Here are a few topics of discussion that came out of this discussion focused on The State of Retention 2024.
Churnkey’s Cancellation Insights Data From 2023
In 2023, customer retention was mixed with cancellations slightly down. The B2B sector remained a bright spot with customers more open to revisiting their relationships with products. Customers are becoming more savvy, willing to experiment with different solutions, and advocate for their needs. Seasonality in prosumer products became more pronounced
The situation saw mixed results. Cancellations were relatively stable, with a slight decrease over the year. Our data is primarily from Europe and the US. B2C faced challenges, especially with voluntary churn, while B2B was more positive. B2B customers were more likely to revisit their product relationships, with easier-to-address reasons for leaving. Overall, customers are becoming savvier, willing to try different solutions and advocate for their needs. This was particularly evident in seasonal prosumer products, which saw more pronounced fluctuations, especially in B2C.
Analyzing Cancellation Patterns from 2023
What can we learn from cancellation patterns over the past year? Recent data indicates spikes around Christmas and Thanksgiving. It seems this pattern repeats almost every year, though 2021 didn't show much of an impact. Scott, what are your thoughts?
We've observed a lot of fluctuations. It appears people plan ahead – before a major holiday, there's a lot of activity. During the holiday, not as much. Afterward, it feels like everyone's coming up for air and deciding to cut down on expenses, like their Netflix subscription. This seems like deliberate planning, mainly by B2C customers, to align their spending habits with major cultural events. While not surprising, it's interesting to note these details.
Is NPS (Net Promoter Score) Irrelevant in 2024?
The use of the Net Promoter Score (NPS) is debated due to factors like timing and context affecting its reliability as a customer satisfaction measure. While it's often paired with the Customer Satisfaction Score (CSAT), many favor CSAT for its accurate capture of customer emotions. Despite the simplicity of numerical values, understanding the nuances behind these numbers is essential, and qualitative questions are seen as valuable.
