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The 5 churn metrics every SaaS founder should track before it's too late

JM

James Miller

2024-12-10 · 8 min read

The 5 churn metrics every SaaS founder should track before it's too late

Most founders I talk to track the same three metrics: MRR, new signups and support tickets. Those are lagging indicators. By the time they move, you've already lost the customer.

1. Product engagement score

Before a customer churns, they stop using your product. Track logins per week, features used and time-in-app. A drop of 40%+ over two consecutive weeks is your first warning sign.

In NovaMind, you can set an automation to alert your CS team the moment a customer's engagement score drops below your defined threshold.

2. Support ticket sentiment

One frustrated support ticket is noise. Three in 30 days from the same account is signal. Track ticket volume and tone per customer — not just globally.

IF tickets > 3 AND sentiment = negative
→ THEN alert CS lead via Slack

3. Expansion revenue ratio

Healthy accounts expand. Churning accounts don't. Track upsell and cross-sell revenue as a percentage of total MRR. If expansion drops, churn is coming.

4. NPS trend by cohort

A single NPS score is a snapshot. NPS trend by cohort tells you if your product is getting better or worse for specific groups of customers over time.

5. Days since last login

The simplest metric is often the most powerful. An account that hasn't logged in for 14+ days is in danger. Automate an outreach sequence the moment this threshold is crossed.