You gave insane value at your onboarding.
That doesn’t mean they will use your SaaS product continuously.
On average, SaaS products retain 39% of users after the first month, reducing to 30% by the third month.
Here are the things SaaS products are doing wrong, which increase churn & some actionable tips which to implement:
✦ No Clear Habit Loop:
Users sign up, try the product once, and forget about it.
Why? Because they have no clear reason to return to your app.
That’s why you need to give them a clear reason to return to your app.
You can make them do simple things like setting goals, having a streak system in your app.
Just remind them when they haven’t used your app.
✦ Too Many Features, Too Little Guidance
Too many features = Confusion, not retention
You need to Stop targeting different personas, building features for all of them, and presenting all features in a single product.
This will overwhelm users.
Having features are important, but they will destroy your retention if you don’t present it correctly.
Instead of giving all the features at once, gradually introduce the features to them one by one.
Show only the essential features first, then reveal more over time.
Use tooltips to make them explore the features. Make them explore.
Don’t teach them. Rather make the app so good that using it becomes so easy.
Don’t force them to use a feature.
Later, give them a need to use that feature.
They will surely use it.
✦ No Personalization
If you are giving every user the same product experience, you are done.
63% of consumers will stop buying from brands that use poor personalization tactics.
And, Businesses with advanced personalization strategies can reduce churn by 10-20%.
That’s why personalization is insanely important for any SaaS product.
Remember the questions you asked during onboarding?
Use them to personalize the experience.
For example, Canva first asks whether you are an individual, small business or an enterprise.
Then, it personalizes the experience accordingly.
Also, you can personalize the experience according to how users behave in the app.
For e.g., guide users who struggle using the app, while giving more features to the ones who use your app more often.
Remember: Companies that excel at personalization generate 40% more revenue than average players.
✦ Ignoring the Emotional Side of Engagement
Your users are humans too. (excluding AI agents)
They need a sense of progress, achievement, or reward for continued usage.
Use celebratory moments (animations, messages) when users complete tasks.
Also, give special gifts to long time users.
These small things will give user satisfaction, and give you long term growth.
Again, you need to refine them all based on data.
Now you have engaged them, but:
Sometimes, they will get stuck inside your product.
Maybe they won’t return after a session.
That’s where the next letter comes in:
This guide is made by Farhan Tawfeeq, Founder of BrightCav.
At BrightCav, Farhan helps SaaS companies reduce early-stage churn by silently fixing the gaps users never mention, but always feel.
Most SaaS churn isn’t loud. It slips away quietly. Unspoken. Unseen. Until revenue starts bleeding and no one knows why.
There’s a way to see it before it happens.
Use the Leak Finder Scorecard: a quiet diagnostic built to find the hidden cracks in your flow.