So when you get going in B2B and SaaS, one type of churn surprises you: bigger customers that are actively using your product … all the time … that still don’t renew.
Those surprise you and sneak up on you.
Here’s the Why:
1. Lack of Clear ROI and ROI Metrics
This is what kills so many sales and marketing tools at renewal. Even if the team likes them and uses them all the time. Many buyers don’t have a structured way to measure the ROI of the B2B tools they’re using. This makes it hard for them to justify renewals or expansions, especially when budgets are tight. Without clear metrics, they’re often left guessing whether the product is worth the cost.
2. Vendor Consolidation Pressure
Still a big, big issue today. Yes, CIOs and others are buying more AI products. But consolidation is still a big push everywhere else. Buyers are increasingly under pressure to consolidate vendors to reduce costs and complexity. This can lead to them dropping tools that might still be valuable but don’t fit into their broader consolidation strategy. It’s not always about the product’s performance or even value—it’s about simplifying their SaaS stack.
3. Overwhelmed by Options
The SaaS market is saturated, and buyers often struggle to differentiate between similar products. This can lead to decision fatigue, where they either delay decisions or stick with the status quo because it’s easier than evaluating alternatives.
4. Inadequate Internal Adoption
This is on you. Even if a SaaS product is great, buyers often face challenges getting their teams to fully adopt and use it. Poor adoption leads to underutilization, which makes it harder to justify renewals. This is especially common in tools that require significant behavior change or training.
5. Overly Complex Renewal Processes
Too many SaaS vendors are turning renewals into games to radically push higher prices and upsells over long, protracted negotations. Best you have a strong hand if you do this. KLong contracts, unclear pricing, or rigid terms just make renewals harder.
6. Fear of Vendor Lock-In
Too many games on renewalsBuyers are wary of getting locked into a product that might not meet their needs long-term. This fear can make them hesitant to commit to multi-year contracts or invest heavily in a single too.
7. Misalignment with New or Changed Business Goals
Sometimes, buyers purchase tools without fully aligning them with their business objectives. Not just for this year, but especially for the next one. This leads to a disconnect between what the product offers and what the business actually needs, resulting in wasted spend and frustration.
8. Lack of Post-Sale Support
Buyers often feel abandoned after the sale. If the vendor isn’t proactive in ensuring their success—through training, support, and regular check-ins—buyers are less likely to renew or expand their usage.
9. Promises of Radically Better Efficiency From a New Vendor
This is in many cases how new AI vendors are scaling at insane rates. They are promising expoentially higher efficiency than ever before. It will convince some. Maybe even many.
10. Loss Of Your Champion
This always puts a deal at risk. Too many don’t jump on this.
