As a SaaS company, do you allow customers to pause their account?
This is a Customer Satisfaction lesson we should all take away from Slack and Stewart Butterfield.
- A pause is better than a cancel.
- A downgrade is better than a cancel.
- Not charging customers for more than they need, at least below the Site License level, is better than a perpetually frustrated customer.
- A positive customer experience, even a customer that leaves, is a new brand ambassador for your product. You need a lot of these to win.
Beyond that, you need to take a long view. The 7–10+ year view.
In a recurring revenue model, a customer that churns is a customer you never really had at all.
But a customer than pauses, and comes back later (or downgrades, but upgrades again later) … is just a customer with a somewhat lower CLTV.