Monthly Churn Rate by Cohort
Churn rate per signup cohort — earlier cohorts had more time to churn
Top Churn Reasons
Self-reported reasons from churned customers (322 total)
Churn Rate by Subscription Plan
Free plan customers churn at 5× the rate of Enterprise customers
Plan Performance Summary
Churn rate and average LTV per plan
| Plan | Customers | Churned | Churn Rate | Avg LTV |
|---|---|---|---|---|
| Enterprise | 87 | 5 | 5.7% | $4,451 |
| Pro | 255 | 39 | 15.3% | $1,089 |
| Basic | 301 | 97 | 32.2% | $338 |
| Free | 357 | 181 | 50.7% | $0 |
Churn Rate by Region
Latin America has the highest churn at 37.1%; Middle East is the most stable
Customer Tenure Distribution
Retained customers stay 2.4× longer than churned customers on average
Free Plan is a Churn Funnel, Not a Growth Engine
50.7% of Free plan users churn — and they generate $0 LTV. With 357 free users (35.7% of the base), the platform is investing onboarding and infrastructure costs into users who overwhelmingly leave without converting. A structured free-to-paid conversion funnel with feature limits and timely upgrade prompts is urgently needed.
Pricing & Budget Are the #1 Churn Driver
Combined, "Price too high" (63) and "Budget cut" (58) account for 37.6% of all churn reasons — more than competitor switching and feature gaps combined. This signals a pricing perception problem, not necessarily a value problem. Flexible annual plans, pause options, and downgrade paths could save a significant share of these customers.
Enterprise & Pro Customers Are the Business Foundation
Enterprise customers churn at just 5.7% and generate $4,451 average LTV — 13× higher than Basic. Pro customers at $1,089 LTV and 15.3% churn are also high-value. These two segments represent the most defensible revenue. Dedicated customer success, quarterly business reviews, and proactive check-ins for these users would protect the core revenue base.
Build a Free-to-Paid Conversion Workflow
Introduce in-app upgrade prompts triggered after key actions (e.g., hitting usage limits, saving a project). Add a 14-day Pro trial for free users at the 30-day mark. Goal: convert even 15% of Free users to Basic — this would add ~$156K in annual recurring revenue.
Introduce Flexible Pricing: Annual Plans & Pause Option
Since pricing is the top churn reason, offer a discounted annual plan (e.g., 2 months free) and a "pause subscription" feature for budget-cut customers. This directly addresses 37.6% of churn causes and reduces involuntary churn during temporary budget freezes.
Deploy Early Churn Warning System for Basic Plan
Basic plan customers churn at 32.2%, and churned customers average only 184 days tenure. Set up automated alerts at day 60 and day 120 for low-engagement Basic users (low login frequency, unresolved support tickets). Trigger a personal outreach or discount offer before they decide to leave.
Fix Support Quality — It's Causing Direct Revenue Loss
"Poor support" accounts for 53 churns (16.5% of churned customers). Invest in a support SLA — target under 4-hour first response for Pro/Enterprise and under 24 hours for Basic. A monthly support satisfaction score tracked as a KPI would make this measurable and accountable.