How to reduce customer churn for SaaS: Best email marketing strategies

With SaaS services spending six times more on acquiring new clients than on retaining existing ones, reducing SaaS churn rate should be among the top priorities of all businesses. Email marketing can be an important tool for directly affecting customer retention. This article examines practical and effective email marketing strategies for reducing churn and increasing loyal customers.

Key takeaways 

1. Retention is more cost effective than acquisition. Onboarding, email support, loyalty programs, and automated messaging cost significantly less per customer compared to acquiring new customers.
2. An onboarding email series reduces early churn. Guiding subscribers through your product’s core features step by step builds confidence, drives engagement, and fosters long-term loyalty.
3. Proactive email marketing campaigns keep clients engaged. Educational content, product updates, bug-fix notifications, and progress reports help maintain customers’ interest and reinforce the value of your SaaS.
4. Churn prediction and feedback matter. Tracking your customers’ behavior, running win-back campaigns, and collecting regular feedback through in-email surveys enable you to identify risks early and continuously improve your product.

What is SaaS customer churn?

SaaS customer churn occurs when a customer stops using a company’s products by canceling or not renewing their subscription, switching to a competitor, or simply not being active — all signs of customer loss.

Why SaaS customer churn is important:

• attracting clients to SaaS is expensive — according to 2025 data, SaaS companies spend around $702 to acquire one customer;
• even a 5% boost in customer retention can elevate profits by 25%-95%; 
• churn in SaaS services has a direct impact on customer acquisition cost and customer lifetime value. These metrics, in turn, affect your company’s revenue and long-term viability.

How to calculate churn rate for SaaS

To measure the number of customers who leave a SaaS, use the customer churn rate metric, which is the percentage of clients who cancel their recurring subscriptions over a given period of time.

Churn rate formula

First, choose the period you want to investigate — whether that’s a month, a year, or a fiscal quarter. We recommend calculating all periods to paint a full picture.

Churn rate = cancelled subscriptions / total new customers x 100%.

(Over a given period of time)

For instance, this May, 5,600 customers purchased a subscription, and 3,400 of them extended their subscription in June. You do not include all your active customers, nor do you include all those who unsubscribed from your services in June. Simply take into consideration all those who subscribed to your service in May.

What is a healthy customer churn rate?

Now that you know your results, you probably want to know if you are doing well and whether your churn rate is within established norms. Well, luckily or not, there is no such thing as average or good churn in SaaS, as it depends on your industry and on your company’s age. Young companies in SaaS normally have a higher client churn rate.

Here are a few numbers to serve as guidelines.

The average revenue churn rate for most businesses is roughly 5%; however, 3% or lower is a strong benchmark to aim for. 

Typical churn benchmarks:

• monthly churn: Around 1% for SaaS overall, although small and mid-sized companies may see rates closer to 5%;
• annual churn: About 1%-2% for larger SaaS brands, while smaller businesses might experience annual churn rates of 10%-15%.

Why email marketing works for reducing churn 

Email is a powerful communication channel that allows you to send personalized messages, share valuable information, and guide customers throughout their entire journey — from acquisition to subscription and the ongoing use of your SaaS product. To achieve this, you can leverage both marketing and transactional emails.

Here’s how email marketing helps improve retention:

• direct communication with subscribers: Sending newsletters, promotional updates, or exclusive offers keeps subscribers engaged with your brand and encourages them to stay active on your platform, reducing churn;
• behavior-based personalization: By using a customer’s name, referencing their actions or needs, and providing tailored recommendations, you make each client feel valued, strengthening trust and loyalty;
• educating, re-engaging, and winning back at-risk customers: Email is an effective way to share product updates, highlight new features, and provide best practices that help customers get the most out of your SaaS.

Now, let’s dive into the email marketing strategies that work best for reducing churn in SaaS.

Best email marketing strategies to reduce churn 

Email marketing can influence customer churn at different stages of the customer lifecycle, starting with onboarding and ending with win-back emails, which are usually aimed at customers about to leave your SaaS.

Prevent early churn with an onboarding email series 

It’s crucial to walk new subscribers through your product after conversion or even during an extended trial. Your goal is to reduce friction, highlight key features, and build confidence. Onboarding emails should thus be educational, supportive, and action-oriented, leading to meaningful product engagement.

Tooltips and in-app guidance created with onboarding software can complement your email series, and your first email is critical: It should deliver immediate value by helping customers take their first small but meaningful step, such as sending their first campaign, customizing a template, or activating a core feature. These quick wins create momentum and drive deeper product adoption.

(Source: EmailLove)

For example, Stripo previously used a classic welcome email that introduced the team through photos, a clear call-to-action, and five helpful links. The email also included interactive content, a help center, and demo-related resources.

(Source: Email from Stripo)

Today’s approach has shifted from general product promotion to hands-on education. The current onboarding series includes six messages that guide subscribers step by step through Stripo’s core features:

• steps 1-2: Account setup and security (e.g., two-factor authentication) followed by a walkthrough of the platform’s interface and main sections;
• steps 3-4: Exploring email templates and learning the template editor — starting with basic customizations and gradually moving toward advanced design elements;
• steps 5-6: Testing emails with built-in integrations and exporting them seamlessly.

(Source: Email from Stripo)

Unlike the previous version of this series, which pushed blog content and upgrades, this updated approach is entirely driven by education and uses video and text guides to simplify the onboarding process. As a result, new subscribers experience a smoother learning curve. Moreover, automated branching ensures each recipient receives follow-up emails tailored to their activity, thus improving customer engagement and retention.

Many SaaS companies include videos in their welcome emails to demonstrate how customers can get the most out of their tools. These emails can contain a single video or even a full email series with tutorials.

(Source: Stripo template)

To make your onboarding sequence more engaging, consider adding:

• interactive checklists to guide clients step by step;
• embedded video tutorials to explain key actions visually;
• dynamic progress bars to create a sense of achievement.

Use proactive engagement campaigns

To keep customers active and reduce churn, it’s important to go beyond onboarding and continue engaging your customers with relevant, helpful content. Proactive email campaigns help recipients get more value from your product, stay informed, and build long-term loyalty.

• Educational newsletters with best practices

Send regular newsletters that share practical tips, use cases, and best practices. This newsletter helps customers discover new ways to benefit from your product and keeps them engaged over time.

(Source: Email from MacPaw)

• Product updates and release announcements

Notify your customers via email whenever you launch a new feature or update. Don’t underestimate the power of release notes, as clients often check them. Pair your announcement with a clear manual or video tutorial explaining how your new functionality works so customers can start using it right away.

(Source: Email from Stripo)

• Personalized recommendations based on usage data

Leverage client data to provide personalized recommendations. For example, highlight underused features of your product or share quick tips to help customers get more out of your platform.

• Progress reports

Show customers how far they’ve come. Monthly or annual reports summarizing their activity — similar to YouTube’s “Year in Review” or Grammarly’s weekly performance emails — remind your recipients of the value they’re getting from your product. This not only reinforces engagement but also strengthens brand loyalty.

(Source: Email from Duolingo)

• Bug-fix notifications

Let your customers know once you’ve fixed a critical issue with your product. A quick email update builds trust by showing that you listen to feedback and act on it. Also, make it easy for clients to report bugs through email, chat, social media, or feedback forms — whichever channel they prefer.

(Source: Email from Stripo)

Predict churn and send win-back emails

Proactively identifying at-risk customers allows you to act before they leave. Behavioral triggers such as a drop in logins, reduced activity, or incomplete projects can signal potential churn. Monitor key engagement metrics such as last login date, usage frequency, and feature adoption to understand when a client has begun to disengage from your service.

Once you’ve identified these customers, reach out to them with timely, relevant emails. Even a simple check-in message after a week or two of inactivity can remind customers of your value and eventually bring them back.

• Re-engage inactive customers

If a client hasn’t logged in for a week or two, send them a friendly reminder email to bring them back. You can also ask these customers directly why they’ve been inactive — a short in-email survey can yield valuable feedback for improving both your product and your retention strategy.

• Send “We Miss You” emails

For subscribers who have been inactive for a longer period, send personalized “We Miss You” emails. Include a brief survey, offer helpful resources, or highlight key features that these customers might not have explored yet. This shows that you care about their experience and want to help them succeed.

(Source: Email from YogaDownload)

• Launch win-back campaigns

If a client cancels their subscription, don’t give up. Trigger a win-back series with targeted offers, feature updates, or special discounts that address the reasons these customers may have left. Well-timed campaigns can successfully re-engage churned customers and turn them back into loyal customers.

(Source: EmailLove)

Handle involuntary churn 

Involuntary churn, which is often caused by failed payments or technical issues, can be prevented with timely communication and user-friendly processes.

• Benefit from automated payment reminder emails

Send automated reminders to customers whose subscriptions are about to expire or whose payments have failed. Include clear CTAs and frictionless payment links to make it as easy as possible for customers to resolve their issues. Use phrases such as “Don’t lose access” or “Renew in just one click” to impart a sense of urgency without being pushy.

(Source: Email from Stripo)

• Make support easily accessible

Always provide clear and simple ways for clients to contact your support team. Add a dedicated support block or link at the end of every email and ensure that “Contact Support” links are visible on your website and within user accounts. Quick access to assistance can prevent frustration and reduce the likelihood of churn.

• Optimize transactional emails

Transactional emails, such as payment confirmations, password resets, and billing notifications, are not only functional but also serve as opportunities to build trust and engagement. Since these emails often have high open and click-through rates, consider adding subtle brand elements, upsell opportunities, or easily accessible feedback options to turn a routine notification into a retention tool.

Collect customer feedback and run retention surveys

Understanding why customers leave and what keeps them engaged is key to reducing churn. Feedback emails and micro-surveys allow you to collect actionable insights, improve your product, and strengthen customer loyalty.

• Regularly ask for feedback

It is not enough for SaaS business to only ask for feedback once. Build feedback collection into your ongoing communication by:

• adding a small “Feedback” button or form in every email;
• tracking your Net Promoter Score (NPS) to measure loyalty.

You can also automate feedback requests through drip campaigns by sending surveys after a week, quarter, or year of product use. This helps you spot issues early and respond proactively.

• Understand what your customers really need

As customer needs evolve, your product should evolve with them. Use email surveys to learn what your customers expect and prefer. Then, choose the communication channel they are most comfortable with.

Once you collect this data, follow up with customers through thank-you emails, share how you plan to act on their feedback, and adjust where necessary. Combine these insights with market research and competitor analysis to ensure your product continues to meet and exceed your customers’ expectations.

(Source: EmailLove)

Wrapping up

Reducing churn in SaaS is possible if you create consistent, meaningful communication that keeps customers engaged and supported at every stage of their journey. Email marketing, which features onboarding email series to proactive engagement, win-back campaigns, and feedback-driven improvements, is one of the most powerful tools to build lasting customer relationships.

Pick one strategy, test it, and optimize it based on your results. Over time, these incremental improvements will not only reduce churn but also strengthen customer loyalty and increase lifetime value.