How Quipli Solved Customer Churn by Rethinking the Top of the Funnel

Customer churn is the silent killer of SaaS businesses. For Kyle Clements, CEO and Co-founder of Quipli, churn was more than a statistic—it was a painful roadblock threatening to derail his company’s growth. But instead of focusing on quick fixes like better customer support or last-minute retention tactics, Kyle took an unconventional approach: he looked at the top of the funnel.

In this episode of SaaS Founder Stories, hosted by David Brennan, CEO and Co-Founder of Arkeo AI, Kyle shares how Quipli transformed its retention by refining its ideal customer profile (ICP) and making tough decisions about who to target and serve.

The Challenge: Struggling with Retention

Early in Quipli’s journey, customer retention numbers weren’t looking good. As a vertical SaaS company serving the equipment rental industry, the product was designed to be a mission-critical system. Yet, despite offering significant value, churn remained high.

"We’re a system of record. For us, 90% logo retention means a 10-year customer. But early on, our overall numbers didn’t reflect that,” Kyle explains. “If an investor had looked at them, they’d say, ‘This isn’t a great business.’"

Kyle and his team faced a difficult reality: something fundamental about their approach to acquiring and serving customers had to change.

Do you know your customer churn rate? Learn how to calculate it here!

The Turning Point of Churn: Going to the Top of the Funnel

Instead of focusing on downstream retention efforts, Quipli zoomed out to examine its customer acquisition process. The team realized they were casting too wide a net, targeting multiple rental industry segments—including event rental, boat rental, and ATV rental—in addition to their core equipment rental audience.

"Churn starts at the top of the funnel, not the bottom," Kyle says. "It’s about who you’re targeting, how you’re marketing to them, and how you’re pricing your product."

By analyzing retention rates across different customer segments, Quipli identified a core audience: established equipment rental companies generating $300,000–$500,000 in annual revenue.

The Churn Solution: Focusing on the Right Customers

With this clarity, Kyle and his team made a bold decision:

• Narrow the Focus: Quipli stopped serving other segments like event and boat rentals.
• Refine Marketing and Sales: They revamped their messaging and marketing efforts to target equipment rental companies exclusively.
• Adjust Pricing: Quipli introduced annual contracts at $6,000 per location. This not only screened out less committed customers but also aligned with the value provided to their core segment.

"Once we focused on equipment rental companies, retention skyrocketed," Kyle says. "It was like a switch flipped. The product became better for that segment, and the business felt easier to run."

Churn Lessons for SaaS Founders

Kyle’s experience offers valuable takeaways for SaaS founders grappling with churn:

1. Start at the Top of the Funnel: If churn is high, revisit your acquisition strategy. Who are you targeting, and do they align with your ideal customer profile?
2. Be Willing to Say No: Narrowing your focus might mean turning away paying customers, but in the long run, it’s worth it.
3. Align Pricing with Retention: Pricing isn’t just about maximizing revenue; it’s a tool for filtering out customers who aren’t a good fit.
4. Iterate Relentlessly: Finding your ICP is a process of trial and error. Don’t be afraid to cohort, segment, and refine until you see results.

Conclusion

Quipli’s story is a testament to the power of focus and data-driven decision-making. By identifying and committing to their ideal customer profile, Kyle and his team turned a retention challenge into a growth opportunity.

As Kyle puts it, “At some point, you have to pick your bet. Once you do, everything else becomes easier.”

Ready to dive deeper into Kyle’s journey and learn how Quipli transformed their business?

🎧 Listen to the full episode of SaaS Founder Stories now: 🔗 Click Here