👋 Hi, I’m Kyle and welcome to my newsletter, Growth Unhinged. Every other week I take a closer look at what drives a SaaS company’s growth. Expect deep dive takes on SaaS pricing, product-led growth, public company benchmarks, and much more.
In an emerging PLG business, especially one that initially sells into a single user rather than a team or entire organization, churn can be one of the biggest inhibitors to long-term growth.
I’ve seen annualized retention rates in PLG businesses range considerably from 50% to upwards of 90%. When retention falls on the lower end of that range, it puts tremendous pressure on a company’s ability to keep accelerating new logo acquisition and to squeeze as much as possible out of the customers who stay.
It’s easy to dismiss churn as a Customer Success problem that just requires additional bodies. Here’s the thing: much of the churn happens within a user’s first 3-6 months (below is a real life example), which means SaaS companies need to get their cus…
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