Arman Eshraghi, CEO and Founder of Qrvey, hosts a podcast, “SaaS Scaled.” Our latest episode featured Baird Hall, SaaS Builder and Co-Founder at Churnkey, the platform that supercharges every part of customer retention, helping companies optimize growth. You can watch or listen to the podcast here and we’ve covered some highlights of their discussion below.
What is the ideal company & price point that churn-reduction solutions best serve?
“Probably the most interesting thing that we have found with churn is that, yes, average revenue per user matters. And that’s kind of why B2B usually has lower churn rates versus B2C because the lower the price, the more impulsive the decision to buy, which results in a more impulsive decision to cancel.
“But what we have found is that the pricing model and how you price your product also has a big direct correlation to churn. A good example of this is our customer SaaS companies that are B2B or B2C that use a usage-based model. Those customers are going to see higher churn because every month customers are making a decision, ‘How much am I going to use this? Am I going on vacation next month? Am I really getting value out of this?’ When it’s usage based, they’re thinking about their bill and their usage constantly So there are going to be a lot more cancellations. On the flip side, there are also going to be a lot of reactivations, and that’s what really brings the loop together.”
Is there a magic number that churn should never exceed?
“I think it’s great to look at customer acquisition costs in relation to your churn to understand the health of your subscription business, which is very important. I don’t think there’s a perfect range or zone to be in because it really comes down to whether your customer acquisition costs are going to correlate with your profit margins and whether or not you can support those acquisition costs. Retention is also helping decide whether or not it’s worth overspending if they’re going to stay for a long period of time.
“But I think maybe what’s underlying the customer acquisition costs is how quickly do your customers make a buying decision? And that is what we find really correlates to churn. From a psychology standpoint, if somebody decides to buy a product very quickly, the chances are they’re going to be willing to cancel that product very quickly.
“The flip side of that is if somebody has spent a lot of time thinking about the decision, and a lot of process goes into it, they’re going to be that much less likely to cancel.”
Dos & don’ts for SaaS startups to reduce churn?
“It’s very rare for new founders to ask us this. Generally, what happens is startups do nothing but focus on growth. And then 12, 18 months down the road, they come to us for help putting fires out. But the advice I give is that early on in your company’s timeline, the information is going to be muddy because you just don’t really know who your best customer is. There’s a lot to figure out in that first year of growing your initial customer base. So, I recommend focusing on data collection over that time.
- Allow customers to cancel
- Make sure you collect why they cancel
- How they were feeling about your product when they canceled
- What they wish would have been different
“And this can all be handled in a very nice, elegant cancellation flow. It’s also immensely helpful to track that data over time.”

Arman Eshraghi is the CEO and founder of Qrvey, the leading embedded analytics solution for SaaS companies. With over 25 years of experience in data analytics and software development, Arman has a deep passion for empowering businesses to unlock the full potential of their data.
His extensive expertise in data architecture, machine learning, and cloud computing has been instrumental in shaping Qrvey’s innovative approach to embedded analytics. As the driving force behind Qrvey, Arman is committed to revolutionizing the way SaaS companies deliver data-driven experiences to their customers. With a keen understanding of the unique challenges faced by SaaS businesses, he has led the development of a platform that seamlessly integrates advanced analytics capabilities into software applications, enabling companies to provide valuable insights and drive growth.
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