Developing a systematic framework for churn mitigation in a B2B SaaS environment
Andersson, Valter (2024)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024120533312
https://urn.fi/URN:NBN:fi:amk-2024120533312
Tiivistelmä
High customer churn rates are a significant barrier to growth for B2B SaaS companies. This thesis investigates churn’s impact, identifies its drivers, and proposes actionable strategies for mitigation. Through a case study on Supermetrics, the research demonstrates that reducing churn to benchmark levels could potentially triple growth rates, emphasizing the importance of effective churn management. The study combines a review of existing literature with qualitative and quantitative data from Supermetrics, including cancellation surveys and exit interviews.
Key findings include common churn drivers, such as poor onboarding, misaligned value perception, and insufficient customer engagement. The unique characteristics of B2B SaaS companies, such as long-term customer relationships, multi-stakeholder dynamics, and the need to demonstrate measurable value, necessitate tailored approaches to churn mitigation.
To address these challenges, the thesis introduces a flexible framework based on customer value theory. The framework encourages cross-departmental collaboration, iterative improvement, and a systematic approach to churn management. Validation from industry experts confirmed its practical relevance but highlighted challenges such as leadership buy-in and contextual customization. This research contributes to the understanding of churn dynamics in B2B SaaS and offers practical tools to improve customer retention and enable sustainable growth.
Key findings include common churn drivers, such as poor onboarding, misaligned value perception, and insufficient customer engagement. The unique characteristics of B2B SaaS companies, such as long-term customer relationships, multi-stakeholder dynamics, and the need to demonstrate measurable value, necessitate tailored approaches to churn mitigation.
To address these challenges, the thesis introduces a flexible framework based on customer value theory. The framework encourages cross-departmental collaboration, iterative improvement, and a systematic approach to churn management. Validation from industry experts confirmed its practical relevance but highlighted challenges such as leadership buy-in and contextual customization. This research contributes to the understanding of churn dynamics in B2B SaaS and offers practical tools to improve customer retention and enable sustainable growth.