A strategic guide featuring insights, examples, and cancellation flow breakdowns from the world's leading SaaS platforms.
36% of companies emphasize the first three months as critical for reducing churn.
| Category | Average Churn Rate (Monthly) |
|---|---|
| Overall Average (2024) | 4,2% |
| Voluntary Churn | 3,5% |
| Involuntary Churn | 0,7% |
| Early-Stage Startups | 10-20% |
| First 3 Months (Month 1) | 10,0% |
| First 3 Months (Month 3) | 4,0% |
| Consumer SaaS | 6-7% |
| Very Small Businesses | 3-5% |
| SMBs (Monthly Billing) | 3-7% |
| Mid-Sized Companies | 5,2% |
| Large Organizations/Enterprise | 3,8% |
| Enterprise Target (Goal) | 1% |
| ARPU ≤ $10 | 6,2% |
| ARPU $25-50 | 8,7% |
| ARPU $100-250 | 7,1% |
Data Sources:
**https://www.kalungi.com/blog/saas-churn-rate-benchmarks**
**https://usermotion.com/saas-churn-rate-benchmark-2024**
**https://www.saastr.com/which-is-the-churn-benchmark-for-saas/**
| Primary Churn Trigger | Description |
|---|---|
| Lack of Perceived Value / Low Product Usage | Users who do not quickly or consistently experience the product's value tend to cancel. Often linked to failing to reach the "aha moment." |
| Early-Stage Retention (First 3 Months) | 36% of companies emphasize the first three months as critical for reducing churn. |
| Poor Onboarding Experience | A complex or disjointed onboarding process is a primary cause of early churn. The first three months are critical for retention. |
| Inadequate Customer Support | Poor, slow, or unhelpful support leads to dissatisfaction and cancellations. Nearly half of customers switch due to a poor customer experience. |
| Pricing or Billing Issues | Dissatisfaction with pricing, sudden changes, or hidden fees can trigger churn. Involuntary churn due to payment failures is also significant. |
| Competitor-Driven Churn | Customers may switch when they find better alternatives, more features, or similar pricing elsewhere. |
| Lack of Product Updates / Integration Capabilities | Stagnant products or those lacking necessary integrations can lead users to seek more advanced or holistic solutions. |
| Loss of Key Users / Decision-Makers | If the primary product advocate or decision-maker leaves the company, the risk of churn significantly increases. |