Reasons for our first churn at our SaaS (Sketchnote.co)
After building the SaaS for nearly 1.5 years, we started SLG from July. We on-boarded 12 paying companies and today was the first churn.
The reasons for the churn,
1. The team was using excel to manage their workflow, they found Sketchnote too complicated.
2. The managers loved us but they could not get a buy-in from their team because the team felt that they are tracked/accountable and thought that the tool was complicated.
We generally feel that, these are the red flags in the project management space,
- If the team is subscribing monthly then there is a high chance they will churn.
- If the team requests a lot of features while being on-boarded.
- If the team is not familiar with any project management tool and requires a lot of hand-holding and education.
- If the team requires a lot of implementation time.
- Generally, the SME space or small teams have higher chance of churn.
Building SaaS and marketing and selling it is such a uphill task and churn just kills the motivation. I will be spending the entire weekend listening to doom metal! :D
What are your reasons of churn, would love to learn from the community.