To keep this short, my co-founder and I created an SEO tool that got a fair amount of traction on Black Friday after being featured on several websites. We were used to small bursts of users from cold calling, and this new wave of customers was foreign to us.
From that point onwards, we've been getting new businesses signing-up daily, but we're dealing with about 30-40% of customers unsubscribing after the first month.
We had great 'stickiness' in our small circle of early users, but the new wave of customers seem to not be getting that same experience. I have tons of theories, but getting data is slow. I've tried out several smoke tests and adding features, but most have had marginal benefits.
I've been trying to get on-calls with the businesses that churn, but they aren't responsive at all (which I totally understand, no one wants to have the hard conversation of why a product isn't worth their money anymore). I think I read something insane like 1 out of 26 people finish their exit survey when they unsubscribe.
I feel like I am so close to scaling up and finally making it, but I really want to zero in on this churn problem.
My two questions:
- Are there any tips/tricks that you guys use to get more responses from people who have churned? I've emailed every single customer who has churned and a small percentage of them reply and NONE of them want to get on a quick phone call so I can get feedback on how to improve.
- Any general tips on how to improve churn? I think as more people found out about our product, people who weren't in our customer persona started joining and didn't get that same Product-Market Fit. Should we go back to the drawing board and account for these new larger businesses or should we instead zero-in on our marketing strategies? What are the usual churn numbers that you face if you're a SAAS owner like me? Why did I start this section by saying I have two questions when I really had like 5?
This is possibly the largest problem we are facing, and I'd be forever in debt if you could impart some advice!
Excited to read the comments!
Hello and welcome back to Equity, TechCrunch’s venture-capital-focused podcast, where we unpack the numbers behind the headlines. We’re back on this lovely Saturday with a bonus episode!
There is enough going on that to avoid failing to bring you stuff that we think matters, we are back yet again for more. This time around we are not talking Roblox, we’re talking about ecommerce, and a number of rounds — big and small — that have been raised in the space. Honest question: do y’all plan to release news on the same week? Are trends a social construct?
From Natasha, Grace, Danny, and your humble servant, here’s your run-down:
- Webflow raised $ 140 million in a round that it says it did not need. This is not a new thing. Some startups are doing well, and don’t burn much. So investors offer them more at a nice price. In this case $ 2.1 billion. (Webflow does no-code
- Checkout.com raised $ 450 million. The rich really do get richer. In this case the founders of Checkout.com, whose company is now worth around $ 15 billion Checkout.com does, you guessed, online checkout work. Which as Danny explains is complicated and critical.
- We also talked about this Bolt round, for context.
- And sticking to the ecommerce theme, Rapyd raised $ 300 million at around a $ 2.5 billion valuation. There is infinte money available for late-stage fintech.
- Early stage as well, it turns out, with Tradeswell raising $ 15.5 million to help businesses improve their net margins.
- Finally, ending with a chat on infrastructure, Nacelle closed an $ 18 million Series A.
And now we’re going back to bed.