Whether you’re a SaaS business owner, sales leader, or an account manager, you’re committed growing and branding the business for the better good. To do that, one must take adequate measures to engage its current and past customers – reducing the churn rate.
If you own a SaaS business startup, you don’t have to worry about reducing customer churn for now, but you’ll eventually come across this problem. And if you’re not familiar with the term, note that customer churn refers to customers that stop doing business with a company for some reason.
As per Harvard Business Revenue, retaining the existing customers is 25 times cost-effective engaging a new one. Therefore, keeping your existing customers in the circle is more crucial than trying to engage new ones. In simple words, if you’re focusing more on engaging new customers than keeping the existing ones satisfied and happy, you’re definitely doing it wrong. And this very problem led us to compile this post.
Reduce Your SaaS Customer Churn
Reducing customer churn should be the foremost priority of any SaaS manager. With that in mind, here are 7 proven ways to reduce your SaaS company customer churn:
1. Identify the Core Issues
What is the reason behind your customers leaving you? Is it bad customer support, costly packages, or substandard services? First thing first, the very first step to reducing customer churn is identifying the issues.
For example, in case of a problem, when customers can’t find a promising solution through support, you’re giving them a legitimate reason to leave you.
2. Make it Official
Your customer churn reduction campaign will only work if you make it official in your SaaS company. Unless you bring it up to your sales managers, marketing executives, and employees that it’s important, you won’t succeed in reducing your customer churn.
Put customer needs on top of the table and instruct your teammates to provide the best solutions possible.
3. Keep Track of Customer Engagement
It is important to keep track of customer engagement. Identify how your customers are reaching you and what makes them select you over your competitors. Once you have the required information, improve the customer experience to improve it further.
4. Work as an Adoption Agency
If you’re like most SaaS companies, you’re probably overlooking the new customer’s onboarding process. Make sure to provide value products against your customers’ cost because misalignment between value and cost can destroy your business. Overcharging your customers to produce a substandard end-product by an entry-level and under-trained team is simply absurd.
5. Act on Customer Engagement
As important as it is to measure customer engagement, there’s a great need to act on it. After you’ve collected the engagement data, you probably have a clear idea why your customers think they’re not on the right path. An apologetic yet professional email by the concerned authorities or a phone call by the SaaS manager can solve the problem. If their problems are solved delicately, they won’t have a reason to leave you.
6. Offer Yearly Contracts
As we’re specifically talking about SaaS, offering yearly-contracts instead of monthly is an efficient way to reduce customer churn. Customers who have subscribed long-term contracts are often more dedicated, committed, and stick to you for long. Moreover, they have more time to learn all the positive things about your business.
7. Set Reminders
Last but not least, expert sales managers recommend to make it easier for customers to leave if none of the above-mentioned techniques worked. Because by this time, you’ve already failed to engage them for long. The more they find it difficult to unsubscribe or cancel the contract with your company, the more frustrated they will be with your SaaS company.
After your SaaS company engages enough new customers and you notice an increase in revenue, it is the right time to worry about the customer churn. The above-mentioned will certainly assist you to keep your existing customers and engage new ones at the same time. Still, the most important thing is to determine your customer needs and satisfy them at your fullest.
It shall be the core duty of an enterprise to provide the best experience to the valued customers. Mishaps happen but if your customers love you, they will be willing to compromise one a thing or two.