Software as a service (SaaS) is an industry that’s growing rapidly. However, it’s also an industry that causes a high attrition rate among its customers. In this article, we’ll explore how to reduce your SaaS attrition rate with 3 essential tools and processes:

  • Defining who a person is in your system;
  • Improving customer experience and engagement; and
  • Building a trusted community around your product.

What is SaaS Attrition Rate?

What is SaaS Attrition Rate?

As the name suggests, it’s a way of calculating how many customers are leaving your business each month. It can help you understand why your customers are leaving and what you can do to stop this from happening.

Why You Need To Know About It:

If you don’t know how many people are leaving, then how will you know if something needs fixing? As a result, it’s important that SaaS companies track their attrition rate on an ongoing basis so they know when they need to change something in order to keep up with their competitors – or even just stay afloat!

How Does It Affect Your Business?

What causes a high SaaS Attrition Rate?

While there are many reasons why a SaaS attrition rate is high, some of the most common culprits include:

  • Lack of customer success. If your product is not being used as intended or there are bugs in it, customers will be less inclined to stay with you. You need to make sure that every aspect of your product is functioning correctly and efficiently before launching it out into the market. Otherwise, customers won’t have enough incentive (or reason) to continue using it.
  • Lack of customer communication. Your customers want regular updates on how their experience is going and any changes they should expect moving forward — don’t leave them in the dark! Be proactive about communicating with them; if something goes wrong or an error occurs during an update process, explain what happened clearly so users know exactly how much time they should expect until everything gets fixed again (or if this issue will ever be resolved). This way everyone feels confident knowing what actions were taken before giving up hope altogether – which means a lower churn rate overall!

What tools and processes can help you reduce the attrition rate of your software as a service company?

The best way to reduce attrition is by using a Customer Data Platform (CDP). With a CDP, you can collect and store all of your customers’ data in one place. This allows you to use artificial intelligence (AI) algorithms to learn about them, which will help you find ways to retain more of your users.

A second tool that can help reduce attrition is customer experience management (CXM). CXM combines the usage data from your application with survey feedback from customers in order to improve the experience for each individual user. This way, when people leave because they’re unhappy with something in particular (like a bug or feature), they’ll be much more likely to come back if it’s fixed quickly.

Finally, customer engagement is an important part of reducing attrition because it involves making sure that new users continue using your app after signing up for an account or purchasing software online through e-commerce platforms like Shopify or Magento 2.​

Customer data platform – define who a person is in your system.

A customer data platform (CDP) is a technology that gives you access to all of your customer data and makes it possible to build a 360-degree view of each person. Your CDP can include information such as name, email address, company name, age range, and other attributes that are gathered when customers interact with you online or over the phone. You can use this information to gain insight into their needs and interests so you can focus on providing them with products and services that will keep them happy.

A CDP also allows you to pull in external data from third-party providers like social media platforms like Facebook or LinkedIn; CRM software; ecommerce stores; mobile apps; loyalty program partners such as airlines or banks; product reviews from websites like Amazon or TripAdvisor etc., which allow you get an even greater picture of each person’s identity by combining all available sources together into one holistic view (this process is known as “fusioning”).

Enhance the customer lifecycle by improving customer experience and engagement

Improve the customer lifecycle by improving customer experience and engagement.

The customer lifecycle is the process of a customer from first contact to long-term retention. It begins with onboarding, then includes engagement and retention. In order to reduce SaaS attrition rate, you need to improve the overall quality of each phase in your product’s lifecycle.

Onboarding is when a new user becomes aware of your product and decides to use it for the first time. This is often achieved through marketing campaigns that explain what your company does and why it’s beneficial for them. Engagement refers to creating an ongoing positive relationship between users and vendors, so they keep coming back for more products or services from yours over time (known as “stickiness”). When customers are no longer interested in using your service anymore, they may decide that it’s not worth continuing because there are cheaper options elsewhere on offer; this leads us neatly into retention rates too!

Build a trusted community around your product to boost customer confidence

You should build a trusted community around your product. This is the most effective way to enhance the customer lifecycle by improving customer experience and engagement.

It’s important for companies to keep their customers informed about all that is going on in the business, especially when it comes to new products and services.

By building a loyal community of users who are interested in supporting your brand, you can boost their confidence in your company and its offerings.

3 essential tools and processes to reduce your SaaS industry attrition rate

To reduce your SaaS industry attrition rate, you have to have the right tools and processes in place. This begins with a product success platform that encompasses tools for customer data, customer lifecycle, and customer experience.

  • Customer Data Platform – A good CDP allows you to pull together every piece of information about every user in one place so you can build better products based on real-world data instead of assumptions or “gut feelings.” It also allows you to get more granular insights about your customer’s behavior and preferences so you can personalize their experience better than ever before.
  • Customer Lifecycle Management (CLM) – The goal of CLM is twofold: 1) enhance the customer lifecycle by improving customer experience and engagement; 2) build a trusted community around your product to boost confidence among new users joining the community


The SaaS attrition rate is a metric that can be used to track how many customers leave your company each month. It’s important to keep an eye on this number because it gives you insight into how your product is performing. We recommend using the tools and processes listed above to help reduce the attrition rate of your software as a service company.