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B2B Churn Rate: 5 Ways to Reduce Your Client Churn

B2B Sales
min read

published on

May 28, 2024

Spending months nurturing a B2B client only to see them walk away is frustrating. And when one client leaves, what can you do to keep others from doing the same? 

While the average B2B SaaS churn rate hovers around 5% annually, some industries see rates as high as 30%. It is important to understand the different types of churn and how your business compares to others in your field before jumping into solutions.

In this article, we explore all of the above: types of churn, industry averages, and strategies to help you reduce your business’s B2B churn rate, improve your B2B sales process, and keep clients for the long haul.

Short on time? Here are the key takeaways

First, let’s cover the key information to remember:

  • Know your industry and how you stack up. Understanding different types of B2B churn and typical rates for your business verticals gives you a benchmark to measure your own success in keeping clients.
  • Relationships matter. Offering personalized support, regular communication, and valuable services that go beyond the basics helps build strong, lasting relationships with your business clients.
  • Never stop improving. Regularly seek out client feedback and act on it! Show them you are listening and committed to their success by incorporating their suggestions into your products, services, and overall experience.
  • Learn from those who leave. Even when clients decide to go elsewhere, it is an opportunity. Asking the right questions about their reasons for leaving can provide valuable insights to help you retain future clients.

With the basics down, we will now get into the specifics — starting with types of B2B churn and average churn rates across industries.

Churn 101: Types & industry averages

There are two main types of B2B churn:

  • Logo churn: The complete loss of a client. This means they have terminated their contract or stopped doing business with you altogether.
  • Revenue churn: A decrease in the revenue you generate from an existing client. This could happen if the client downgrades their services package, reduces their usage of your product, or negotiates lower prices. 

B2B churn averages by industry

To give you a clearer picture, here is a breakdown of average annual churn rates by industry:

Source: CustomerGauge’s B2B NPS® & CX Benchmarks Report, The State of B2B Account Experience

5 ways to reduce your client churn

Keeping your B2B clients engaged and satisfied takes proactive effort throughout their entire experience. Let's explore five strategies that work together to reduce churn and build lasting client relationships:

1. Deliver added value and flexibility to stand out

To truly stand out in the competitive world of B2B eCommerce, go beyond the basics. Think about offering value-added services that directly benefit your clients. This could include personalized product recommendations based on their purchase history, custom packaging options, or support for integrating your products and services into their existing systems and workflows.

Additionally, provide flexible pricing models, discounts for bulk orders, or extended payment terms to accommodate different budgets and financial needs. This level of flexibility demonstrates your understanding of the B2B sales experience and helps you reduce your B2B eCommerce churn rate.

2. Build strong relationships with personalized support

The key to keeping B2B clients happy is understanding them as teams and individuals. Assign each business client a dedicated account manager who can provide one-on-one support, learn about their specific needs, and offer tailored solutions. This personalized touch makes them feel valued and understood.

Beyond troubleshooting, schedule regular check-ins (monthly or quarterly). This gives you a chance to review each client’s progress, discuss upcoming projects, and proactively address any challenges they might encounter. Demonstrating your commitment to their success builds trust and strengthens the relationship.

3. Drive engagement and loyalty with strategic communication

Success in B2B sales hinges on clear and consistent communication that keeps clients engaged and invested in your brand, reducing B2B churn rates. Here is how to strengthen your communication strategy:

  • Position updates as solutions. Keep clients informed about new products, features, or industry trends that impact their business. Monthly newsletters, product demos, and webinars tailored to their interests are all effective B2B sales channels. Frame updates on new products, features, or industry trends as solutions to the specific challenges your clients face.

  • Target your messaging. Use targeted marketing campaigns to reach clients with offers directly relevant to their needs. Exclusive promotions, early access to new products, or referral incentives all add value and strengthen the experience you provide customers.

  • Maintain consistent touchpoints. Encourage clients to engage with your brand even after the initial B2B sales cycle closes.  Establish a regular cadence of communication through newsletters, check-ins, and relevant offers. Regular communication and tailored offers can prevent them from exploring competitor options and help you spot potential churn risks early.

  • Use multiple channels. Reach clients in the way that they prefer by using a variety of channels like email, social media, in-app messages, and direct calls. A multi-channel approach reinforces your message and deepens engagement opportunities.

Expert tip: When engaging with a potential client that has submitted an eCommerce RFP (request for proposal), tailor your communication to address pain points or specific requirements outlined in the RFP. This demonstrates your understanding of their needs and positions you as a preferred solution provider. 

4. Offer high-quality onboarding

A strong onboarding program simplifies the buying experience, helps your clients quickly master your platform, and realize the value you provide. It is the first step in creating loyal customers!

Here are our top tips for providing the best onboarding experience to your B2B customers:

  • Offer diverse onboarding formats. You can provide a mix of webinars, step-by-step guides, and one-on-one walkthroughs to cater to different learning styles.

  • Focus on industry-specific solutions. Highlight resources addressing common pain points or best practices within your clients’ industry. Frame these solutions as readily available tools tailored to their specific needs within your platform.

  • Emphasize your eCommerce platform’s user-friendliness. Mention intuitive navigation, clear ordering processes, and easily accessible resources within the platform itself.

  • Offer personalized support. Streamline clients’ onboarding experience by having your sales or account management team proactively reach out to those who may need extra guidance. Provide tailored recommendations or a walkthrough of key features based on clients’ individual needs.
  • (Optional) Celebrate learning. If applicable, include gamification elements — such as certificates or badges — to recognize client progress and encourage continued engagement with your platform.

5. Continuously gather and act on feedback

Reducing churn is often as straightforward as paying attention to what clients have to say.

Regularly gather feedback through surveys, interviews, and even in-app feedback forms. Truly listen to their pain points, what new products or services they would like to see, and any suggestions for improving your offerings.

But do not just collect feedback — do something with it! Incorporate customers’ ideas into your roadmap and let them know when you have made changes based on their suggestions. 

These ideas can greatly improve your eCommerce operations. Suggestions might lead to expanding your product catalog with items relevant to your clients’ industries, adding new features that streamline the ordering process, or offering more flexible shipping or payment options to enhance the overall client experience. 

By implementing these changes, you not only improve as a business but also show your clients you are truly invested in their success — making them more likely to stay with you long-term.

Expert tip: Check online feedback on your business and its competitors. Regularly conduct competitor analysis to understand what sets you apart, how customers view your competition, and how you can beat them at their own game.

7 questions to ask churned B2B clients

Even with the best churn reduction strategies in place, some client turnover is inevitable. 

And even when a client does churn, it presents a valuable opportunity to learn and improve. You can conduct exit interviews with churned clients to gather insights into their decision to leave and identify areas for improvement in your business.

Here are some key questions to ask:

  1. What initially led you to choose our product or service?
  2. How did our offerings meet or fail to meet your expectations?
  3. Were there specific issues that made you decide to stop using our product or service?
  4. How would you describe your experience with our support team?
  5. Are there any features or improvements that could have kept you with us?
  6. Did you switch to a competitor? If so, what advantages did they offer?
  7. What could we have done differently to keep you as a client?

After conducting the interviews, review responses for common themes and prioritize actions based on their potential to improve customer retention. Share these insights with your team to encourage ongoing improvement and collaboration.

Expert advice: In addition to exit interviews, keep an eye on public reviews and social media mentions of your business. These opinions can provide valuable insights into client sentiment and highlight areas for improvement.

The bottom line

Reducing churn is critical for the long-term success of your B2B eCommerce business, but it can be difficult to know how to go about it.

Our recommendations for strategies? Offer personalized support, value-added services and flexibility, and ongoing training and resources. Also, prioritize clear communication with your customers and regularly collect — and act on — their feedback. 

By implementing proven retention strategies like these — and continuously learning from churned clients — you can keep your clients happy and loyal. 

Frequently Asked Questions

How to reduce churn in B2B?

Reducing churn in B2B is about ensuring your clients stay satisfied. To do this, provide personalized support, clear communication, continuous training, products and services that add value, and flexibility in your offerings. Also, actively listen to customers’ feedback and show how your business implements their suggestions. 

What is a good churn rate for B2B businesses?

Churn rates for B2B businesses vary by industry, but generally, a 5% annual churn rate for B2B SaaS is considered good. Aim to keep your churn rate below the average for your specific industry.

Which activity reduces the risk of churn?

Regular client check-ins are a key activity that reduces the risk of churn. By proactively reaching out to gauge satisfaction, uncover challenges, and identify opportunities for improvement, you can address potential churn risks before they escalate.

About the author
Alexis Delplanque
Co-Founder & Chief Sales Officer @ DJUST

Expert in topics on B2B sales, sales strategy, eCommerce, eProcurement, and revenue diversification

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