Churn Management in 2025: 6 Ways Finance Teams Can Boost B2B Customer Retention
Joe Sweeney
Jan 14, 2025
Losing customers is a natural part of doing business…right? Average churn rates for SaaS business are currently between 3-7% a year and, while many businesses simply accept this, you don’t have to.
For many B2B SaaS companies, the finance function remains underutilized, often focused solely on reporting, cost management, and compliance.
But here's the truth—your finance team holds the keys to critical customer touch points that directly influence loyalty and retention…at a time when retaining the customers you have is even more important to your company’s success.
From billing clarity to payment flexibility, the truth is that your key finance processes could be what is losing the customer along the way, killing the customer experience and driving churn you are probably not attributing to these touchpoints.
In 2025, it’s time to wake up to finance’s role in causing customer churn. And it’s time to stop leaving customer retention to sales or customer success teams. Finance leader - step up and claim your role in building customer loyalty and driving long-term growth!
Wondering how best to calculate and measure retention in your business? Learn more in our dedicated article.
Keep reading to find out:
Why churn management strategies matter more than ever in 2025
How finance teams can influence retention and stop driving churn
Looking to improve your customer relationships? Click on the banner below and discover our Financial Relationship Management solution.
Why churn management strategies matter more than ever in 2025
Your current customer base is one of your most valuable assets—and here’s why:
Lower acquisition costs: Retaining customers is far cheaper than attracting new ones. Acquiring new customers is much more expensive and savvy businesses are finding that retaining, as well as upselling and cross-selling to existing customers, delivers a much better rate of return.
Higher lifetime value: Loyal customers purchase more frequently and are open to upgrades, directly increasing customer lifetime value (CLTV). If your business has a high churn rate and relies on a constant stream of new customers coming in the door, your CLTV is undoubtedly suffering which means you’re not getting the full value from the customers you’ve worked hard to win.
Creating second order revenue through Word of Mouth and existing customer referrals: Satisfied customers advocate for your brand, creating organic referrals and strengthening your reputation.
Valuable insights: Existing customer data reveals trends, preferences, and needs, helping improve your services.
Add to this the growing economic pressures, and you get a pretty compelling picture. Rising interest rates since 2022 have tightened credit availability, making cash flow optimization critical. Spoiler alert: while the Fed has recently cut rates, they’ve also signalled there will be fewer cuts in 2025 due to stubbornly high inflation.
For many businesses, this is driving a shift away from "grow-at-all-costs" attitudes toward profitability and sustainable growth.
This economic climate forces businesses to prioritize keeping the customers they already have. For SaaS finance leaders, retaining customers not only provides stability but also fuels business resilience during uncertain times.
The kicker? According to Harvard Business Review, increasing retention by just 5% can boost profits by 25% to 95%.
But what role does the finance team play in all this?
How finance teams can influence retention
Think about it—your finance department controls critical touch points in the customer experience:
Billing and invoicing: Timely and accurate invoices directly impact customer satisfaction. A single error can damage trust.
Payment processing: Offering diverse, secure, and convenient payment methods simplifies the process and keeps customers happy.
Customer support for billing inquiries: Prompt resolution of payment issues builds trust and improves customer loyalty.
By leveraging platforms like Upflow, finance teams can enhance these touchpoints. For example, Upflow’s intuitive software helps measure and analyze your cash flow and so you can make more informed business decisions. Additionally, our analytics capabilities empower teams to identify payment trends and proactively address risks.
6 strategies for finance teams to beat churn in 2025
1. Streamline billing and payments
Confusing or delayed invoices frustrate customers. Instead:
Use clear, itemized, and accurate invoices.
Offer flexible payment terms (e.g., net 30, net 60) or installment plans.
Automate recurring payments and send timely reminders.
2. Leverage data analytics
Data is your best ally in combating churn:
Track key metrics like Gross Customer Retention (GCR), Gross Revenue Retention (GRR) and Net Revenue Retention (NRR) to glean insights into your customers' satisfaction and spending habits.
Segment customers by payment behavior, engagement patterns, or service tier.
Use analytics to identify customers likely to churn (e.g. those consistently paying late or with low usage rates of your product) and address their needs proactively.
3. Collaborate across departments
Finance doesn’t operate in a vacuum. Partner with:
Sales and Marketing: Share insights from financial data to tailor campaigns or refine messaging strategies.
Customer Success: Collaborate on loyalty programs or provide early warnings for at-risk accounts.
Upflow’s out-of-the-box integrations with tools like Salesforce, NetSuite and Stripe facilitate seamless teamwork, making data-sharing and communication across teams a breeze.
4. Offer financial incentives
Recognize and reward loyalty. Consider:
Tiered loyalty programs: Offer increasing benefits based on customer longevity or spending.
Discounts and offers: Provide incentives for renewals or upgrades.
Early payment discounts: Reward prompt payments as a win-win for both sides.
5. Simplify pricing with transparency
Complex pricing structures can lead to both confusion and mistrust. Build confidence by:
Offering straightforward, easy-to-understand pricing tiers.
Avoiding unexpected fees or hidden charges.
Including transparent breakdowns of added services or discounts.
6. Automate and optimize processes
Manual workflows are not only time-consuming but also prone to errors. Invest in automation tools that:
Streamline customer communication (e.g., automated billing and invoice reminders).
Enable personalized payment experiences, that fit both your business and customers.
Upflow is designed to handle all these needs, saving your team an average of 20+ hours per month. That’s time you can use to focus on strategies that directly impact retention.
Why 2025 is the year to act
With economic uncertainty and rising competition shaping the SaaS landscape, customer retention is more critical than ever. Finance teams are uniquely positioned to make a significant impact—not as silent back-office operators but as strategic partners in improving customer experiences.
By leveraging their control over payment processes, analyzing customer data, and collaborating with other departments, finance leaders can redefine their role and help drive sustainable growth.
What’s your next step? Explore how Upflow can transform your finance team's role in customer retention. Schedule a demo today and see how we can help your business not only retain more customers but thrive in 2025 and beyond.
