B2B SaaS Insights: 30-90 Day Renewal Playbooks May Be Too Late to Stop Churn
Did you spot the warning signs?
Have you ever been blindsided by a customer deciding to leave when everything seemed fine? The reality is, their decision to part ways could have been made long before the end of their contract — and way before you heard the news.
The decision to cancel a subscription is not made on a whim. It builds up over time due to unrealized value, unresolved issues, or unmet expectations.
The decision can happen months or even years ahead of the customer’s renewal date
Get ahead by tying early churn indicators to a proactive strategy for adoption, engagement, and value realization.
“Customers often decide to leave not just a few months before their renewal but sometimes as early as six months to two years prior. It's not just about catching them before they leave; it's about continuous value delivery to ensure they never reach that point of decision."
- Natasha Narayan, CEO and Co-Founder of IcebergIQ
What Might be Happening Under the Radar
Realizing their concerns are unaddressed or objectives are unmet, your customers may start to take action. They may:
Start talking to other vendors.
Stand up a PoC of another product while simultaneously using yours.
Decide to cancel your product, but continue to use it for a while to allow time for a smooth transition to the new one.
Begin planning to consolidate their tech stack, at the expense of your offering.
Spotting Early Churn Indicators
If you just lost a customer (and it was a surprise), find out if you were tracking these early warning signs.
Decreased product usage: Product metrics are commonly used to indicate when a customer may be at risk. You have this data in your org - are you using it effectively?
New stakeholders or senior leadership: Changes in decision-makers often lead to a reassessment of tools and vendors.
Cost-cutting or tool consolidation initiatives: Teams are constantly reassessing their tech stacks for a number of reasons, from budget cuts to technological advances. They are keen to eliminate tools that don’t add enough value.
Previous renewal was competitive: If they looked closely at competitor solutions, these vendors have the opportunity to keep building relationships in the background.
Request for a short-term contract extension: They might need extra time while they prepare to transfer to an alternative solution
Note: There are many ways to monitor customer health/churn risk – this list is not intended to be exhaustive.
Crafting a Proactive Engagement Strategy
At IcebergIQ, we saw a perceived lack of ROI as one of 2024’s top churn drivers. As we interviewed customers, they often said something like, “... we weren't properly utilizing the tool, therefore, the value of the tool didn't translate effectively enough.” Or, “We thought it was valuable, but we couldn’t prove it.” Value matters now more than ever, and engaging early and often is essential.
“It’s all about continuous value delivery. This starts with setting expectations early and then reaching out often to understand your customer’s pain points and concerns. Strategies we see working include personalized value reminders with tailored messaging and a willingness to be flexible at renewal. Starting those conversations sooner and understanding the increased focus on ROI is key.”
- Natasha Narayan, CEO
IcebergIQ helps B2B software companies transform churn risk into customer loyalty. Through detailed churn analysis, we uncover early signals so you can address them with existing customers before it’s too late. Book a chat with us.