Why Is My Churn Rate Increasing? 7 Data-Backed Causes and How to Fix Them
Your churn rate is climbing and you need answers. Here are the 7 most common causes of increasing churn in SaaS, backed by data from 500+ companies.
Why Is My Churn Rate Increasing?
If your churn rate is climbing, you're not alone. The average B2B SaaS company sees 3-5% monthly churn, but many experience sudden spikes that seem unexplainable.
After analyzing data from 500+ SaaS companies, we've identified the **7 most common causes of increasing churn**—and what to do about each one.
1. Poor Onboarding (Cause #1)
**The Data:** Companies with time-to-value over 14 days see 2.3x higher churn than those under 7 days.
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2. Product-Market Drift
**The Data:** 34% of churn happens when products evolve away from what customers originally bought.
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3. Champion Turnover
**The Data:** When the primary user leaves, accounts churn within 90 days 67% of the time.
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4. Competitive Displacement
**The Data:** 28% of churned customers cite switching to a competitor.
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5. Economic Pressure
**The Data:** B2B SaaS churn increased 23% during 2022-2023 budget cuts.
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6. Support Failure
**The Data:** Customers with 2+ unresolved tickets are 4.2x more likely to churn.
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7. Usage Decline
**The Data:** A 40%+ drop in weekly usage predicts churn with 87% accuracy.
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How OLARI Helps You Find Your Specific Churn Causes
Every company's churn drivers are different. OLARI analyzes your actual data to identify:
Instead of guessing which of these 7 causes applies to you, OLARI tells you exactly where to focus based on your data.
Key Takeaways
1. Increasing churn almost always has identifiable causes
2. The fix depends on understanding YOUR specific churn drivers
3. Early detection gives you time to intervene
4. Data analysis beats guesswork every time
**Ready to find your churn causes?** [Start a free trial](/pricing) and connect your data to get specific insights within 24 hours.