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Dear SaaStr: We Have More Than 20% Churn Our First Month. What Should We Do?

  • High first-month churn rate of over 20% is common in prosumer and mobile subscription apps.
  • Focus on optimizing the onboarding process to drive activation within the first 7 days to ensure customers see value quickly.
  • Segment your churn to identify trends and refine your Ideal Customer Profile to target customers more likely to stay.
  • Encourage customers to opt for annual plans, offer incentives for upfront commitment, improve early engagement, and provide a salvage plan for customers considering cancellation in the first month.

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