Been running a bootstrapped ed-tech B2C SaaS startup since January 2023, started charging in April. We’ve been growing in revenue around 9-15% MoM but our churn is ridiculous, it’s around 21% and has been flat there for around 2 months (was previously 30-25%). Our growth in other metrics is great, we’ll hit $10k MRR this month but that churn number frightens me and I don’t know what I can do about it.
We are a freemium site and around 2% of our users are returning users (this lines up pretty much exactly with our conversion rate from free to paid accounts). Currently have around 125k users total, of which around 4k have paid for something and 1.7k have active subscriptions.
Read through all the comments here and there is a lot of food for thought.
My suggestion is to focus on the 3% that are active users. Those are your customers. This high churn rate as others summarized means you have two cohorts of customers.
Group 1: one time hit. Need it. Found it. Used it. Moved on. Package this as a $50 for 50 hours or something. Whatever the bounds are. And use that to gain usage and exercise the saas.
Group 2: repeat, active users. Go talk to them. Who are they? What we’re they doing before you came along? What if you shut down tomorrow?
The group 2 customers are your market. The others are your testers.
Good luck!