In this episode of the "Foundations" podcast, the hosts dive into the often-overlooked concept of churn, a critical metric for SaaS businesses. They start by breaking down churn into two key perspectives: the percentage of customers lost and the associated revenue loss, using relatable examples for clarity. The conversation then shifts to Net Retention, which offers a more comprehensive view by factoring in both customer loss and revenue growth from existing clients. The speakers highlight that effectively managing churn involves a deep understanding of customer segments and enhancing their overall experience to boost retention, rather than just trying to stop cancellations. They also share practical tips on how to measure these metrics, utilizing tools like Stripe and BareMetrics for valuable insights.
