What impact might a severe economic downturn have on SaaS platform attrition rates and/or price sensitivity?
Upstream Product Marketing
Aurora WDC Analysis: Companies experiencing financial trouble are likely to seek renegotiation from suppliers in order to save as much money as possible to help themselves stay afloat. They’re also likely to cut nonessential spending. If an SaaS platform charges by the number of users, a client company may reduce the number of seats needed, contributing to the attrition rates. If contract renewal is forthcoming during an economic downturn, it is likely the client will be sensitive to price increases and depending on how they were affected, they may be unable to renew at the same cost.