What impact might a severe economic downturn have on SaaS platform attrition rates and/or price sensitivity?
Upstream Product Marketing
Aurora WDC Analysis: According to the Harvard business school, the average small business has enough cash on hand to last 27 days. This number is heavily dependent on the industry, however. If an economic downturn intensifies, it will increase the attrition rates for SaaS platforms as companies look to cut costs, a platform not deemed valuable or used by a small percentage of employees may be subject to cut. If the platform is indeed valued and or used by a larger percentage, a company may seek renewal of their contract, but they will likely be taking a financial hit, and may have an adverse reaction to any price hikes and they may seek to reduce their contract to save as much as possible.