Glossary > Churn Deflection
Churn deflection is a customer retention strategy that aims to reduce the rate at which customers stop using a company’s products or services. This approach is particularly relevant to Software-as-a-Service (SaaS) companies, where customer churn can significantly impact the recurring revenue model.
SaaS businesses use churn deflection techniques to identify and mitigate the reasons behind customer attrition. These techniques include improving the quality of customer support, enhancing the product’s user experience, providing incentives for customer loyalty, and promptly addressing customer complaints and issues.
SaaS companies rely on a high customer lifetime value to ensure profitability, and churn deflection plays a crucial role in achieving this goal by improving their customer retention rates, boosting revenue, and strengthening market position.
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