Guillaume Moubeche founded Lemlist (personalized cold email SaaS) with his two cofounders precisely 365 days ago…
They now have hit $20k MRR.
How?
This posts explains…
Just as King Arthur searched for the Holy Grail in the year 1180…Â
SaaS companies are searching for net negative MRR churn.
(Where the amount of revenue lost from churned customers is lower than the expansion revenue gained from existing customers)
A worthy quest attempted by many, only achieved by the elite.
This is a short story about a #saasmarketer that did…
Like Clickfunnels, Lemlist had a churn problem.
They were losing 17% of their revenue each month, making it almost impossible to reach the holy grail.
So what did they do?
Added this popup after the cancellation button:
And immediately added a massive amount of personality into the churning process.
There could be a little bit of “Reason Why” bias here…
This bias states that regardless of what the reason is, someone is more likely to do something if given a reason.
Robert Cialdini was able to prove this with an experiment where people tried to push to the front of a queue and were much more effective when they provided a reason, however trivial that reason was.
Do Lemlist customers really care that Guillaume wants to avoid harsh European winters?
Maybe… but as long as Lemlist give a reason, this will have an impact on churn.
They then collect the “reason why”:
(Seems obvious but it’s surprising the amount of SaaS businesses don’t do this)
And this feedback is fed straight into Slack:
Making those reason’s hyper-visual to the whole team…Â
When something is visible and you don’t have to manually send it to your development team, it normally gets actioned a little faster 😉
This simple strategy took Lemlist’s net negative revenue churn from 10% to -2%.
This means that despite the fact Lemlist are losing 8% of their revenue each month… they are gaining 10% from people upgrading.
Meaning that WITHOUT taking into account new customers, Lemlist revenue grows each month with their existing customer base.
What did we learn?
- How can you add a human touch to your churn funnel
- How can you make churn feedback very visible to the whole team