Originally posted on SaaStr.com.
Here at SaaSOptics, we regularly emphasize the importance of churn. Not only the importance of having processes in place to track it, but also the need to understand why churn is happening and how to address it. One of the benefits of accurately tracking churn is that it provides insight for multiple teams in your organization. Finance teams tend to look at churn as the number of customers lost due to cancellations and the associated total lost revenue. However, the Customer Success team in a business can look churn another way - as a metric to know which high-dollar customers to be proactive with.
In the referenced article from SaaStr, Jason Lemkin stresses the importance of high-dollar customers and provides some ideas on how your customer success team can take advantage of a key financial metric to increase ARR. Read the full article here.