Subscription Lifecycle - ServiceSource
Companies that offer subscription-based solutions, such as Software as a Service (SaaS) companies, may face increasing churn because of:
- Increased competition and low switching costs. The number of SaaS and subscription offers in the market is growing rapidly – creating more alternatives for your customers.
- Low customer adoption. Some of your customers may not use your subscription-based offering frequently, and some functionality may not be used at all. Customers who do not fully use their service are less likely to renew.
- Limited coverage. Your company may be growing rapidly – but this growth may outpace your ability to drive adoption and renewals across your entire customer base.
- Data fragmentation. Data about customer subscriptions is often spread across many systems and departments, making it difficult to understand trends around customer churn.