In B2B SaaS, we tend to work from a simple principle: the more you help customers succeed, the longer they stay. It's the foundation of Customer Success, and in most cases it holds true. But some situations call that instinct into question.
An academic study based on a large-scale field experiment shows that a perfectly logical move, proactively recommending a better plan to customers, can backfire and increase churn. (The Perils of Proactive Churn Prevention Using Plan Recommendations: Evidence from a Field Experiment - HBS). Without over-reading the findings, there are some useful lessons here for every Customer Success team.
The finding: good intentions, unexpected results
The study followed more than 60,000 customers in the telecoms sector. Some received a proactive recommendation to switch plans, with a simple promise: pay less and get a plan better suited to their usage. The rest received no intervention at all.
The results are fairly clear:
- churn with no intervention: 6%
- churn with a recommendation: 10%
In other words, the action meant to improve the customer's situation actually led to a significant rise in churn.
Interestingly, usage levels barely changed. The problem wasn't gradual disengagement but a faster decision to leave.
Why does this happen?
Two mechanisms help explain it, and they apply well beyond telecoms.
1. You trigger a reflection that wasn't there before
In many contexts, customers don't actively reassess their tool or subscription. They carry on out of habit, or because switching feels costly.
A proactive intervention changes that. It sends a signal: 'you can change'. Above all, it prompts the customer to ask questions they weren't necessarily asking:
- Am I on the right plan?
- Am I paying the right price?
- Are there better alternatives out there?
The key point is that this reflection doesn't stay confined to your product. It naturally extends to the wider market.
2. You shine a light on a problem
By suggesting a customer could optimise their setup, you implicitly highlight a gap. That can come across as helpful advice... or as proof that they haven't been in an optimal position until now.
For some customers, this triggers a deeper rethink:
- Why am I paying this much?
- Am I really getting full value from this tool?
- Did I make the right choice?
For accounts that are already fragile, this realisation can speed up a decision that was already taking shape.
What does this mean for B2B SaaS?
It's tempting to dismiss these results with 'that's B2C, it doesn't apply to us'. That would be a little hasty.
What's comparable
Several dynamics are very close to B2B SaaS:
- Inertia exists here too: even with rational decision-making, many customers don't regularly review their tools.
- Under-use is common: features left untouched, ill-fitting plans, usage that evolves without any adjustment.
- Proactive actions trigger realisations.
For example, telling a customer 'You're only using 30% of the platform, I'd like to share some new use cases that could help you' may lead them to wonder whether they really need the solution at all.
What's different
That said, the B2B context provides some important safeguards:
- longer, collective decision-making
- a more structured relationship with the vendor (CSM, AM, etc.)
- higher switching costs
- a focus on ROI rather than price
In practice, this doesn't eliminate the effect, but it tends to be more gradual and depends heavily on the customer relationship.
Beyond the study: no 'good deed' is neutral
What this study highlights goes well beyond a simple pricing recommendation. Many everyday Customer Success actions can have the same effect: triggering a rethink... at the wrong moment.
Here are a few very real situations many teams will recognise.
Over-eager account handovers
A new CSM takes over a portfolio and wants to do things properly:
- a full audit
- identifying gaps
- a structured action plan
On paper, it's perfect.
From the customer's side, though, it can feel like the status quo is suddenly being called into question. They discover problems they hadn't put into words, or come away feeling that 'it's not working as well as we thought'. The result: an account that was passive but stable becomes active... and critical.
Escalating at the wrong time
Following an organisational change, a CSM decides to involve more stakeholders on the customer side:
- a more senior executive sponsor
- leadership
- new contacts
The intention is good: secure the account and give it visibility.
But if this happens while usage is declining, results are unclear and the renewal isn't yet secured, you're raising the issue to a level where the decision may go against you.
Poorly calibrated adoption pushes
A CSM wants to boost usage:
- training
- workshops
- usage recommendations
But by digging deeper, they uncover poor initial onboarding, under-trained teams or very limited use.
The customer then becomes aware not only of the problem... but also of their own level of proficiency. That can lead to frustration, a loss of confidence and disengagement.
Non-CS interventions that break the momentum
A classic case: the finance team chases an unpaid invoice.
In itself, that's normal. But the timing can be critical:
- just before a renewal period
- when the relationship is fragile
- while a project to secure the account is under way
A poorly timed reminder can:
- strain the relationship
- revive old frustrations
- accelerate a decision not to renew
The common thread: timing
In all these cases, the problem isn't the action itself. It's when it happens.
The same action can strengthen the relationship if it lands at the right moment, or weaken it if it comes at an unstable time. This is especially true when the customer is already showing weak signals.
A few habits worth adopting
Always assess how stable the account is
Before launching any proactive action, it's worth stepping back to look at the customer's real situation. Not every account has the same level of maturity or trust.
Some are engaged, with stable usage and a clear sense of value. Others are more fragile, with early warning signs of possible disengagement: falling usage, silence, less involved contacts or doubts being voiced.
In this context, the same action will have a very different effect. On a stable account, it can strengthen the relationship. On a fragile one, it can trigger a rethink.
Secure before you optimise
When a customer shows signs of weakness, the priority isn't optimising their plan, their organisation or their advanced usage.
It's usually more useful to go back to basics:
- make sure the core value is clearly perceived
- stabilise key usage
- rebuild a baseline of trust
Optimisation (pricing, upselling, more advanced structuring) should come later, once the foundations are secure.
Control the level of exposure
Bringing in new contacts or going higher up the organisation can be an excellent strategy... but not in every context.
Before widening the conversation, ask yourself a simple question: is this the right moment to put this account in the spotlight?
If the situation is still unstable, this can turn an operational topic into a strategic decision. And at that level, the calls tend to be more drastic.
Orchestrate internal interactions
From the customer's point of view, every interaction with your company forms a single experience. They don't always distinguish between Customer Success, Sales, Support or Finance.
An invoice reminder, a sales request or a product escalation can have a direct impact on the relationship, even if each one is legitimate on its own.
Hence the importance of aligning teams:
- on the account context
- on sensitive moments (renewal, tensions, etc.)
- on the tone and timing of interactions
Accept that you can't fix everything at once
This is probably the hardest habit to adopt, especially for a committed CSM.
When you spot a problem, the natural urge is to act fast: fix, optimise, structure.
But in some cases, opening too many topics at once can unsettle the customer. They may come away feeling that everything needs reworking.
Knowing how to prioritise, hold back, or even deliberately postpone certain topics can be the more effective choice in the long run.
Conclusion
The study shows that a well-intentioned action can increase churn. But the real lesson is broader: in Customer Success, what you do matters, but when you do it matters just as much.
Every interaction can reinforce perceived value or trigger a rethink. In B2B SaaS, where relationships are long and often complex, timing becomes a strategic lever.
Ultimately, it's not just about helping your customers, but knowing when and how to help them.
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