{"id":308246,"date":"2025-03-28T07:10:44","date_gmt":"2025-03-28T14:10:44","guid":{"rendered":"https:\/\/www.saastr.com\/?p=308246"},"modified":"2025-03-28T14:55:04","modified_gmt":"2025-03-28T21:55:04","slug":"ai-is-driving-up-churn-across-the-board-because-it-puts-every-renewal-into-play","status":"publish","type":"post","link":"https:\/\/www.saastr.com\/ai-is-driving-up-churn-across-the-board-because-it-puts-every-renewal-into-play\/","title":{"rendered":"AI is Driving Up Churn Across The Board.  Because It Puts Every Renewal Into Play."},"content":{"rendered":"<p>AI is driving up churn all across the board. Why? In many cases, it\u2019s not because vendors fail their customers, or that the solution wasn\u2019t good enough. \u00a0In previous years, customers might have just renewed out of intertia. \u00a0But things are different now.<\/p>\n<h3>Today churn is often simply because looking at how AI changes a category \u2026 put the customer \/ renewal into play.<\/h3>\n<ul>\n<li>Sometimes, there is AI innovation budget fueling change.<\/li>\n<li>Sometimes, it\u2019s a corporate initiative pushing folks to look at AI solutions to cut costs and drive innovation.<\/li>\n<li>Sometimes, it\u2019s just curiosity.<\/li>\n<\/ul>\n<h3>But a lot more deals now are being put into play simply because customers that aren\u2019t deeply unhappy are in some cases, for the first time in years, looking to see what AI can bring to the table.<\/h3>\n<p>You have to be ahead of this:<\/p>\n<ol>\n<li><strong><span style=\"text-decoration: underline;\">You have to make sure you have at least some sort of \u201cAI Parity\u201d with the next generation<\/span><\/strong>, if your aren\u2019t the next generation.<\/li>\n<li><strong><span style=\"text-decoration: underline;\">If you do lose a few key customers due to AI-related churn, Be Kind<\/span><\/strong>. Because I\u2019m already seeing a number go back a year out or less to their original vendor.\u00a0 Boomerangs are already happening where AI vendors overpromised 6-10 months ago. Burn them on the way out \u2014 and they won\u2019t boomerang back.<\/li>\n<li><span style=\"text-decoration: underline;\"><strong>Move faster on the product development side.\u00a0 This is easier to say, but you just have<\/strong> <\/span>to.\u00a0 AI is getting better and better literally every week.<\/li>\n<\/ol>\n<p>AI is driving buyers to look at their vendors and tech stack anew.\u00a0 Even if they don&#8217;t churn today, they may be thinking about it.\u00a0 Not because there are issues, but because you aren&#8217;t top of mind as the AI vendor here of the future.<\/p>\n<p>Be that vendor.<\/p>\n<p>More here:<\/p>\n<p><iframe title=\"10 AI Trends in SaaS Right Now with SaaStr CEO Jason Lemkin on LIVE SaaStr Workshop Wednesday\" width=\"1080\" height=\"608\" data-src=\"https:\/\/www.youtube.com\/embed\/J7jbGsL3WsU?feature=oembed&#038;enablejsapi=1&#038;origin=https:\/\/www.saastr.com\"  allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"lazyload\" data-load-mode=\"1\"><\/iframe><\/p>\n","protected":false},"excerpt":{"rendered":"<p>AI is driving up churn all across the board. Why? In many cases, it\u2019s not because vendors fail their customers, or that the solution wasn\u2019t good enough. \u00a0In previous years, customers might have just renewed out of intertia. \u00a0But things are different now. Today churn is often simply because looking at how AI changes a&#8230; <br \/><a class=\"more-link fade\" href=\"https:\/\/www.saastr.com\/ai-is-driving-up-churn-across-the-board-because-it-puts-every-renewal-into-play\/\">Continue Reading<\/a><\/p>\n","protected":false},"author":19,"featured_media":310367,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpscp_schedule_draft_date":"","_wpscp_schedule_republish_date":"","_wpscppro_advance_schedule":false,"_wpscppro_advance_schedule_date":"","_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_selected_social_profile":[]},"categories":[24898,31,24987],"tags":[],"class_list":["post-308246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai","category-blog-posts","category-saastr-ai"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/03\/cancel-scaled.jpg?fit=1000%2C667&quality=70&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5oib2-1ibI","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/posts\/308246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/comments?post=308246"}],"version-history":[{"count":4,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/posts\/308246\/revisions"}],"predecessor-version":[{"id":310667,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/posts\/308246\/revisions\/310667"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/media\/310367"}],"wp:attachment":[{"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/media?parent=308246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/categories?post=308246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/tags?post=308246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}