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.
Diagnose. Not every product has to be a use it for life type product as long as the lifetime customer value is positive and healthy.
You can try churn prevention strategies. You can do a referral system or credits for free time or other incentives. Push heavily for yearly premium subscribition and gate features behind that.
Or you can look at wider feature set that keeps people on. Sounds like you solve a one a year or once a career problem.