Been running a bootstrapped ed-tech B2C SaaS startup since January 2023, started charging in April. We’ve been growing in revenue around 9-15% MoM but our churn is ridiculous, it’s around 21% and has been flat there for around 2 months (was previously 30-25%). Our growth in other metrics is great, we’ll hit $10k MRR this month but that churn number frightens me and I don’t know what I can do about it.
We are a freemium site and around 2% of our users are returning users (this lines up pretty much exactly with our conversion rate from free to paid accounts). Currently have around 125k users total, of which around 4k have paid for something and 1.7k have active subscriptions.
Maybe it’s because people use your product when they have a paper / project due, and then want to mitigate their spending by canceling.
Consider testing out various pricing models that are more flexible so that people aren’t tempted to cancel. Or better yet, up the feature offering so they feel like the cost of canceling (making them “lose” something) is much greater than the monetary cost of walking away.