How to Control High Customer Churn with SaaS Customer Retention Management – RetentionFlow App

Revenue leakages, higher customer churn score, and not being able to retain customers? Well, the one solution to your problems is the customer success platform with its in-built app – RetentionFlow App.

In the B2B market and subscription-based businesses, retaining customers is a challenge and high churning scores are kryptonite. Before the customer churn scores get high, you need to rein in so that the business does not go down the hill causing revenue leakages, lower retention rate, and higher customer acquisition costs with higher capitalism.

In this article, we are going to elaborate on the SaaS customer retention management and SubscriptionFlow’s in-app integrated solutions that will help you analyze all the aspects of retention management of your business.

What is SaaS Customer Retention?

SaaS customer retention encompasses the time to what extent businesses are able to make retain their customers with their services or products. It serves as a metric that determines the success of the business and its ability to retain the client for a longer period of time.

If we talk about the statistics of churn and revenue, it is estimated that two-thirds of companies have churn rates of 5% or higher, but the figures are often worse for SaaS companies.

According to studies, there is a link between revenue and churn rate, with many startups and small businesses reporting churn rates of 60 percent or higher, while high-growth startups generating more than $10 million per year have a much lower average of 8.5 percent

As we have mentioned that the figures for the SaaS industry can get worse, it is important to take measures and effective actions to control the higher customer churning scores.

How to Calculate SaaS Customer Retention Rate?

The customer retention rate in SaaS is crucial to determine the growth of the business. To calculate the customer retention rate, you must have a timebox or time range that includes the start date and end date. For an instance, if you want to calculate customer retention rate (monthly or annually) then the range would define it.

To calculate the SaaS customer retention rate, divide the number of users at the end of the timeframe by the number of active users at the beginning of the time frame and multiply it by 100.


Here is the visual representation of the formula for you to calculate the SaaS customer retention rate.

SubscriptionFlow’s in-app solution – RetentionFlow App – provides a holistic calculation of customer retention in which you can monitor the churn score factors and know about information of your business retention rate.

Read more: Important SaaS Customer Retention Metrics for Subscription Businesses

What Are Range Retention and Rolling Retention?

To add more to the knowledge of SaaS customer retention rate and SaaS customer retention management, there is more than one way to calculate customer retention rate. Following are the methods to calculate CRR with more scrutiny and meticulousness.

Range Retention

Range retention calculates the customer retention rate on the basis of a range of days set intervals whether it is a 7-day interval, 10 days, and so on – according to the suitable time range for your business.

Let’s say you have set the interval for 7 days, then you can calculate the range retention by diving the number of customers using the service or product in the entire timeframe by the number of users who used the product or service only at the start of the timeframe and multiplying it by 100.

Rolling Retention

Another form to calculate customer retention rate is rolling retention. Rolling retention with special reference to customer retention rate is calculated on a day-to-day basis instead of setting a timeline of days or longer intervals. If you want to calculate customer retention after a specific day, then rolling retention would be the right choice to calculate using the customer success platform.

Our RetentionFlow App calculates the churn score of the customers and shows the chances of customers who have higher churn scores (need to retain the customers using strategies) and customers with lower churn scores (customers that have a high probability that will keep on using your product or service).

Read More: A Guide to Understand Customer Success Playbooks-Grow Bottom Line for Your Subscription Business

What’s A Good Retention Rate For B2B SaaS?

The retention rate is a key indicator of a company’s health and customer satisfaction. With a high CRR, you can spend more money on customer acquisition.

The average customer retention rate varies depending on the industry. The minimum CRR for SaaS industries is 35%. A high rate is 93 percent or higher.

How Would SaaS Retention Management with Customer Success Platform & In-App Solution Benefit Your Business?

There are certain factors that come under the canopy of SaaS customer retention management and churn reduction is one of them. For churn reduction, it is vital that you have complete knowledge of your customer behavior and engagement with the product.

SaaS retention management is also important for improving the customer lifetime value and reducing revenue leakages so that the scalability of the business is not affected but rather improved. When such operations are automated, it quickens the processes of understanding customer behavior and also for SaaS customer retention management (employing strategies). Without any further ado, let’s see how the customer success platform and in-app solution of the RetentionFlow App would help your business in increasing revenue and customers.

Manage Event Types

Creating and managing event types is a feature for the merchants in which they can set the triggers on the basis of which the customer churn scores will be calculated and managed. As every business and industry has different factors that determine their business growth, hence, you will have all the autonomy to select, create, and manage the business types accordingly.

Setting Points for Churn Factors

Now you have set the even types – factors that will determine the churn score- you will also be able to set the points for those churn factors. This will be the total calculation of how many times the event was triggered and added up to the increased customer churn score.

As soon as the point of churn factors cross the threshold, the churn identification and risk would be generated in the separate column created against each customer.

Monitoring Customer Churn Scores

No predictions and no shortcuts would work in monitoring customer churn scores. To read customer churn scores and understand the customer churn scores, it is necessary to have a customer success platform that can monitor customer churn scores or have an app that can do it seamlessly.

You can set certain triggers or event types for analyzing customer behavior and further calculating them to monitor the churn scores. Without RetentionFlow App you can monitor churn scores with the preview of the primary churn score changes that give an aerial view of Good or Not Good Scores along with the timeline of the past week or this week’s analytics (range retention). This is an in-app solution that you can use without using a customer success platform as a whole. This feature is extremely important for your customer success, revenue growth, and business scalability as you will be informed of the information needed to use the strategies for SaaS customer retention.

Assign Grades As Per Your Business KPIs

Not every business has the same KPIs that determine the growth of the business. in the RetentionFlow App, you can manage your churn scores and assign grades to them. The system would calculate the customer churns cores according to the business level and business nature.

By using the in-app solution, you will review the customer churns scores on the dashboard – whether they have high churn scores (higher risk of churn) or they have lower churn scores (lower risk of churn).

RetentionFlow App Widget

Our RetentionFlow App has a widget that you will be able to integrate into your system. With this you will not need to look into the RetentionFlow app time and again rather you will all the preview of your system.

Read More: Reduce Subscription Churn Rate with Customer Health Score in SubscriptionFlow

Ready For Customer Retention Management? Let’s Schedule a Demo!

SaaS customer retention management would make your business successful if done properly through a customer success platform. SubscriptionFlow provides you with an independent in-app solution with which you will be able to review customer churn scores and manage customer retention.

Schedule a demo with us now and have it all seamlessly in your system!