Churn management

Best Churn Management Software for SaaS Companies

Updated November 21, 2023
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If you’ve worked in SaaS long enough, you probably know that not all churn management software is created equal. You may have even purchased solutions that just didn't live up to the hype, leaving you to suffer the consequences.

High churn rates can negatively impact a company's growth and profitability, as it results in loss of customers and revenue. It can affect a SaaS business in several ways, such as decreased revenue, increased customer acquisition costs and reduced customer lifetime value.

That leaves many people wondering: With so many options, how do you know which churn management software to choose? 

It’s a valid question, as the loss of customers through churn costs is estimated at around $243 per client

This may not sound like a lot, but with an average churn rate of 3-15%, depending on your industry, it can add up quickly. 

That’s why we’ve compiled this helpful checklist of questions to ask and requirements to vet to ensure any solution you select will work seamlessly to drive down your churn rate. We’ve also listed several churn management software options, connecting you with your solution faster.

What Is Churn Management Software?

Churn management software is a tech solution that reduces customer churn altogether. Options are usually the B2B product of a SaaS company, integrating seamlessly with your tech stack. This type of software is commonly used among SaaS companies, as the industry is rife with poor user onboarding and pricing shifts that can cause higher churn rates. While different products operate uniquely, they often share similar capabilities. 

For example, the products often begin by calculating a brand’s churn rate, which can be done with this equation: (LOST CUSTOMERS/TOTAL CUSTOMERS) x 100 

After it automates these calculations, you can view customized dashboards with the information, estimated losses and gains from interventions. You’ll also be able to access various tools and options that help you boost customer satisfaction levels and customer retention overall. 

Incorporating this supportive software with other steps, such as reviewing and optimizing your customer onboarding process, can impact your business’s profitability and sustainability. 

Churn Management: A Guide to Keeping Your Customers Coming Back for More

Different Types of Churn Management Software to Help You Achieve Distinct Goals

When you’re ready to pull the trigger on investing in software to drive down your churn, you need it to work as soon as possible. With each passing day, you’re missing opportunities to understand why people aren’t renewing and serve customized offers to win them back. When you consider it costs up to 7x more to acquire a new customer than to retain an old one, this can mean missing out on real revenue.

With this in mind, it’s worth the time spent creating goals for your tool and selecting the best option to address your churn risk. Here’s what to consider.

Predictive Churn Management Software

Predictive churn management software uses machine learning algorithms to analyze customer behavior patterns and predict which customers will likely churn. This software helps businesses identify at-risk customers and take proactive measures to retain them. It can also help businesses personalize customer communication by providing insights into customer preferences and behaviors.

Feedback Collection and Analysis Software

Feedback collection and analysis software helps businesses gather customer feedback and analyze it to identify the reasons for churn. It can also help businesses identify trends and patterns in customer feedback and take corrective actions to improve customer satisfaction.

Customer Success Management Software

Customer success management software focuses on helping businesses deliver a positive customer experience by providing tools to track and manage customer interactions. It can help businesses identify opportunities to upsell or cross-sell products and services and also help them identify and address customer issues before they escalate.

Retention Analytics Software

Retention analytics software helps businesses analyze customer data to identify the factors that impact customer retention. It can provide insights into customer behavior, such as engagement levels, purchase history, and customer service interactions. This software can help businesses develop targeted retention strategies to keep their customers.

Features and Functionality to Look for

When it comes to churn management, having the right software in place is important. But with so many options available, how do you know which one to choose? Here are some features and functionality to look for in churn management software.

Churn Prediction and Prevention Tools

Churn prediction via predictive analytics allows you to see patterns in your churn cycle, offering possible reasons behind the churn and solutions to minimize it. These tools aggregate your data and can use that information to suggest “churn risk” by customer or segment — allowing you to implement preemptive engagement and retention techniques before the churn happens. 

Segmentation Capabilities 

This perk is critical to look for in your churn management tool search, allowing you to put personalized customer retention options in place to reduce churn — both for existing customers and new ones. This can take the form of special offers to boost customer loyalty, such as tailored gamification steps and freebies. It can also be a helpful tool to reference as you collect data, allowing you to see who purchases your product. 

Customer segmentation can be determined by any identifying factor you want, whether you want to identify customers by phases of their journey, churn signals, sales data or demographics. 

User Engagement Campaign Options 

Campaigns are one of the best ways to engage customers, allowing you to both engage customers and assess their customer health. You can use campaign data points to further gauge churn signals, giving you the information you need to predict churn and further limit customer attrition. 

Integrations

If you’re like many other SaaS companies, there’s a pretty good chance you have other platforms and software in your tech deck. Looking for an option that offers robust integration libraries compatible with your other tools can save you hours (and thousands of dollars spent on third-party intercessors). Not to mention, it’ll keep your team as effective as possible, further impacting your bottom line. 

Automatic Notifications

Your business moves fast, so cloud-based automatic notifications are important to consider in your selection process. You’ll want the information and data as it is aggregated and submitted, helping you to react as quickly as possible to any needs or gaps. 

Reporting Tools

Reporting is arguably the single most important tool when it comes to customer retention and anti-churn initiatives. It’s your roadmap to success, making it critical to consider as you work through your software or platform selection process. 

9 Best Churn Management Software for SaaS Companies

Not sure where to start on your search? We’ve done the legwork for you. Here are some top churn management tools for SaaS companies to consider in your list of finalists. 

ProsperStack

Yep! It’s us — most complete solution for your SaaS churn management software needs. We designed our software with a single goal in mind: To help business owners ditch the “patch-up” services for good by developing the most comprehensive platform on the market. 

Our solution is entirely no- and low-code, allowing you to roll out in days. We offer a dedicated retention expert to you throughout your software use, doing the heavy lifting and strategy for you. All you have to do is press go. 

We also offer a range of optimization needs that benefit both your customers and stakeholders, including: 

  • Customer segmentation 

  • Advanced reporting and analysis 

  • Native exit survey support 

  • A/B split testing 

  • Incentivization and gamification 

  • Large-scale integration libraries with all top tech deck options 

  • Simple, transparent pricing options that meet your needs in your current season

In short, we offer no hassle, incredible value and immediate impact. 

QualtricsXM

QualtricsXM’s claim to fame is in its predictive intelligence capabilities and sleek, centralized structure allowing you to quickly determine your customer retention needs. With QualtricsXM, you won’t just simply react to needs. Rather, you can create customer experiences tailored to your segments in-platform. 

You’ll have to book a demo call to get your tailored pricing options. However, it’s likely worth your time. The company has supported customer success for names like Adobe, Deloitte, McKinsey & Co., and Accenture — a testament to the quality of the churn software. 

Hotjar

Hotjar, since its launch, has been focused on customer data — making customer behavior patterns a key element of strategy as it helps SaaS companies to reduce customer churn. One G2 site review noted that “through the heatmaps and user recording tools, [they] are able to see exactly where the issues are.” Few customer retention software options offer that comprehensive level of problem-solving natively, much less in the visually friendly way that Hotjar does. 

Users can sign up for free and instantly access installation support, integration libraries and more — making this a great option for SMBs looking to experiment with their customer success platform setup and experience. The service is used by titans like HubSpot, HelloFresh and more — giving you the assurance that several have gone before you (and won as a result). 

Zendesk

Zendesk is a fully-fledged customer success software that maximizes customer retention by collecting customer feedback. It offers a sleek, unified workspace that is designed to increase productivity. As a result, many report that it has little to no learning curve — and they also appreciate the extensive integration library with over 1,000+ tools to choose from. 

The platform won the G2 award for the Best Software title in 2023, making it a platform to watch if you want a customer-communication-heavy option. Plans start at $55/month annually — an affordable price point for many SaaS startups and enterprises alike. 

ChurnZero

If you’re looking for simplified customer health score data, automation and in-app communication opportunities, ChurnZero is the tool for you. It offers integration opportunities with your most-loved platforms (think Salesforce, Microsoft, Stripe and more) and can be set up in a matter of days. It’s a favorite across hundreds of clients on Capterra and G2 and is a recognized Green Places sustainable company as of 2022. 

Pricing options can be obtained through their team-led demo calls. While possibly inconvenient, it allows you to fully tailor your experience, should you choose them as your vendor. 

SubscriptionFlow

Looking to harness the power of AI in your churn management strategy? Check out SubscriptionFlow. 

It’s a little above and beyond specific churn management software, as it covers payment processing, recurring payments (like subscriptions) and comprehensive reporting that gives you the extra lettuce and tomatoes. However, if you’re looking for a catchall tool that minimizes churn rate while covering those other categories, you’ll enjoy what SubscriptionFlow offers. 

They offer a range of payment gateways and integrations and serve a global clientele. The best part? It’s PCI-compliant for an extra layer of safety as you go. Pricing begins at $99/month if billed on an annual basis. 

Userpilot

This service caters more to those looking for help on the execution side — offering you an extensive range of opportunities to analyze feedback, proactively create incentives for different customer segments and opportunity to tailor the user onboarding experience. It’s dominated G2 globally in 2023 alone and offers a 2-week free trial for SaaS leaders who may be on the fence. 

Pricing starts at $249/month when paid annually, making it a pricier solution than others at the time of writing. However, it’s more comprehensive natively when building out the solution(s) for your clients, possibly justifying the investment. 

Mixpanel

Mixpanel offers your team beautiful, graphic-forward flows and solutions, focusing specifically on optimizing their experience at a customer journey level. This is particularly helpful for those in the startup phase or who wish to take the time to map it out. They’re known for this across the SaaS space, serving clients such as Pinterest, Uber, TalkSpace and Thumbtack (just to name a few). 

Beyond the mapping, the service also offers a moderately-stacked library of integrations, grow-as-you-go infrastructure and competitive reporting and analytics suites for your future use. You can start for free, paying $20/month once you hit 100M monthly “events.” 

Baremetrics

Baremetrics is also visually inspired and renowned for its colorful, easy-to-read dashboards. It’s a great choice for those who dislike the analytic and reporting processes but still need to grasp the data. 

It’s popular with the up-and-coming SaaS companies (think ConvertKit and ToDoist) and is known for its lightning-fast automatic updates, high-quality analyses and single-click integrations. One customer noted that it was “absolutely invaluable and miles ahead of doing it in spreadsheets.” 

Pricing is subjective to your MRR. You can check your eligibility or contact sales for a more direct and accurate answer. 

How to Choose the Right Churn Management Solution

Churn management software can help you identify the reasons behind customer churn and take appropriate measures to reduce it. But with so many options available, choosing the right one for your business can be overwhelming. Let’s review the essential factors when selecting a churn management solution that meets your unique business needs.

Be Budget Savvy 

When choosing a solution, try to choose an option you can easily pay for if your income is halved. This ensures you won’t churn out yourself and takes stress away from the growth process as you scale. 

Think About Your Day-to-Day UX 

Your user behavior matters, too. Huge, sprawling solutions seem great — until you actually have to fight your way through day by day. While this doesn’t mean you need to sacrifice comprehensive insights and churn risk analysis for user experience, it does mean you should choose a solution you won’t mind using daily — even if it’s not entirely set up and personalized yet. 

Speaking of setting up… 

Consider Your Customer Service Options 

Don’t forget to check your available branch(es) of customer support and evaluate how it will fit in your overall customer experience landscape. Email- or ticket-only options don’t often cut it, especially as you set up. Ideally, you should at least have access to phone lines or chat support in addition to your average email or ticket flow. 

Leveraging Churn Management Software for Business Success

Ultimately, when searching for a churn management program, you must complete extensive due diligence to ensure you understand the tool and the company behind it. It should feel like a true partnership in which the solution provider is arming you with their knowledge and expertise to help you create a program to drive down churn and grow revenue.

Properly used churn management tools can double your revenue and support your business’ sustainability and brand perception. With ProsperStack’s hosted cancellation flow, you can start retaining more customers in a matter of hours, driving down your churn rate and growing revenue. 

Schedule a demo and start reducing your churn today. 

FAQs About Churn Management Software

We know it’s a lot of information to take in. That said, we’ll answer some of the most commonly asked questions about churn management software for SaaS so you can better retain customers. 

What Are the Challenges of Managing Customer Churn?

The many challenges associated with customer churn often come down to a single element — a lack of data to inform the approach(es) the business takes. This directly impacts the success of initiatives and preventative solutions, your profitability and your ability to remain an industry leader. 

Why’s It Important to Use Churn Management Software?

Churn management is a critical tool that actively supports your profitability in your given industry. Both voluntary and involuntary churn can be prevented or reduced with your tool of choice, protecting your bottom line and keeping your brand perception high across segments.

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