Reducing churn rate among high-value SAAS customers in Vietnam market at Hotel Link Company

Abstract

Churn—defined as the process by which customers terminate their engagement with a company by discontinuing services or ceasing purchases. This research investigates the systemic determinants of customer churn among high-value Software-as-a-Service (SaaS) clients at Hotel Link Company. Specifically focusing on the Vietnamese hospitality sector, the study addresses a critical performance gap where the organization’s churn rate reached 10.9% in the first half of 2025. Applying the Pareto Principle, the research prioritizes highvalue accounts (properties with >35 rooms) which contribute over 63% of market revenue yet exhibit vulnerability to competitor-driven attrition. Through a mixed-methods diagnostic approach involving qualitative stakeholder interviews and a quantitative survey of 63 hotel enterprises, the study identifies Low Product Quality and Usability as the primary driver of churn. Quantitative regression analysis reveals that Customer Co-creation is the most potent predictor of perceived product quality (beta=0.672), exerting a significantly higher influence than technical system performance or interface aesthetics.