Monday, July 4, 2022
Techiexpert.com
No Result
View All Result
  • Login
  • Register
Exclusive Videos
  • Tech news
  • Startup news
  • Artificial Intelligence
  • IOT
  • Big Data
  • Cloud
  • Data Analytics
  • Machine Learning
  • Blockchain
  • Social Media
  • Tech news
  • Startup news
  • Artificial Intelligence
  • IOT
  • Big Data
  • Cloud
  • Data Analytics
  • Machine Learning
  • Blockchain
  • Social Media
No Result
View All Result
TechiExpert
No Result
View All Result

7 Customer Retention Strategies for SaaS Companies

Shoeb by Shoeb
September 29, 2020
in Tech news
Reading Time: 5 mins read
Customer Retention Strategies for SaaS Companies
19
SHARES
152
VIEWS
Share on FacebookShare on Twitter

It has been proven time and time again that retaining a customer is more profitable than acquiring a new one. There is no doubt about it. They are cheaper to maintain than the acquisition cost of a new customer. What more, once they become your loyal customer, they tend to spend more on your business for buying new products and upgrading to higher versions.

If you are into SaaS business for long, then you would have realized that every customer gets churned eventually. It is a matter of how long you can prevent a churn from happening. The longer you retain the customer, the higher goes your customer lifetime value (LTV).

LTV has a way more impact on your business than you can realize. It not only shoots up your recurring revenues but also attracts more investors. Any investor would look at the average LTV of a business to measure its health. Based on that, they decide how much is worth investing in that business.

For most of the companies, it is not a luxury to have long-term customers. It is paramount for their business to sustain. Companies recover their customer acquisition cost on an average period of between five to seven months. And for the early stage companies, it can go beyond twelve months. So, that’s how important retaining customers is. If you can’t hold them for more than a year, you would be on a negative graph by spending more on their acquisition than generating ROI from them.

Sure, there are some common ways to retain your customers for long like giving better service. But here I am giving you some of the best strategies to implement towards the same objective.

Retention Strategies for SaaS

1.Choosing the right customer

When it comes to customer retention, it all starts from the first stage itself. Your marketing and sales team must be committed towards selecting the right audience. When I say right audience, it means selecting the right fit customer whose needs are directly dependent on your product.

You must refrain from selling to the bad customer only to reach your sales target. It has a negative impact on your business if the customer leaves unsatisfied in the initial stage itself. You can also implement incentives to the sales and marketing team for a long-term customer, to encourage them towards finding the right customer.

2.Successful onboarding

Onboarding is the stage when the customer’s expectations and sales team’s promises are brought to test. This is the time when all your customer’s apprehensions about their purchase decision surface. Your onboarding is a deciding factor for them to either leave or continue with your business. In a survey, it was found that over 90% of customers feel that onboarding must be a priority for the business they buy the solution from.

Make sure your learning process is easy for them to grasp and you maintain a right balance of automated and manual assistance during the onboarding of the customer.

3.Select the right engagement model

Although it is not possible for a CSM (Customer success manager) to keep every customer engaged manually, you can choose the right mix of tech-touch and high-touch engagement model. It is important to keep your customer engaged in your product, especially when the renewal time is near.

This would help you stay at the top of their mind to consider subscription renewal. But just a reminder is not enough, you must also deliver value at every engagement so that it helps them succeed in their business.

4.Use right metrics

Metrics form an essential part of your business processes. You must know the right metrics to measure your performance and progress so that you can take corrective measures towards the same. Another important point with respect to metrics is that you must refrain using vanity metrics.

For example, to know the engagement level of your customer in your product, instead of checking for the number of logins, you must check the duration of their logged in hours. Metrics like Daily Active Users (DAU) or Monthly Active Users would help you know your business more thoroughly.

5.Automate your customer success

You must use the right tool to automate your customer success efforts. You cannot afford to remain in the dark when it comes to knowing your customer’s usage. You must know what features they are using more or less.

Also, there has to be clear information about how they are using your software, and to which end it is helpful in resolving their issues. Based on this you can suggest them tips and recommendations to improve their user experience. All this information can be made available to you only by using a customer success platform.

6.Expand your business with existing customers

When it comes to retaining customers, product adoption must be your first goal. It is when customers have got habituated to your product by finding continuous value from it. And once this is done, you must approach customers for more business opportunities. This is done through upselling higher versions of products and cross-selling related products.

By selling more products to your customers, you are not only expanding your business but also increasing their footprint in your organization. The more products they use of your brand, the more likely they would stay with you in the business.

7.Take regular feedback

You must always be aware of the customer’s current thought process and opinions about your brand. If there is any dissatisfaction with your product, it must be brought out immediately. Hence, in every interaction, make sure you bring out customer’s feedback. Monthly or quarterly feedback must also be gained on a regular basis.

Once you get those feedback, the job is only half-done. The next part of feedback exercise is to actually act upon them. Do they face issues with service or product? Do they have difficulty while understanding the complexity of the product? All these issues must be addressed by a CSM with the right actions without any delay.

Wrapping Up

Customer retention is no doubt the dire need of any growing organization. It not only builds your business but also creates a reputation of your brand in your niche. A loyal customer is one of the greatest assets for any organization. By sharing their experience with others, they can help bring more customers to your sales funnel.

Once you have got a hang of these customer retention strategies, you can refine them within your context to better suit your needs. But no matter which retention strategy you implement, keeping a customer-centric mindset and taking actions accordingly is a must towards retaining a long-term customer.

Tags: custmer experienceSaas
Share4Tweet3Share1Pin9

Related Posts

Telemedicine Business
Tech news

Telemedicine or e-medicine: What is it?

Ways Data Analysis has changed customer reward programs
Tech news

Ways Data Analysis has changed customer reward programs

Digital Learning face recognition
Tech news

Here’s why Deep Learning might not be enough for celebrity face recognition

VPS Helps Forex Trading
Tech news

Staying Safe When Trading on a Trading App

Mozilla launches Thinderbird for android
Tech news

Mozilla launches Thinderbird for android

Most Read

  • How to Track Someone’s iPhone by Phone Number?

    How to Track Someone’s iPhone by Phone Number?

    537 shares
    Share 215 Tweet 134
  • Top 5 car automation trends to know

    298 shares
    Share 119 Tweet 75
  • Is Parody Coin investment a Good Investment?

    108 shares
    Share 43 Tweet 27
  • What is windows modules installer ? How to Enable/Disable

    1248 shares
    Share 499 Tweet 312
  • Tips to Reduce Your Website Hosting Costs

    885 shares
    Share 354 Tweet 221
  • How to Track Activities an Instagram account?

    89 shares
    Share 36 Tweet 22

Recent Stories

Doing Cleanup: 5 Types of Links You Should Disavow

Backlinks
Share4Tweet3Share1Pin1

Hyperlocal marketplace Urvann raises Rs. 3 Cr in Seed Round led by IPV

Hyperlocal marketplace Urvann raises Rs. 3 Cr in Seed Round led by IPV
Share6Tweet4Share1Pin2

Does domain extensions impact SEO standards

Does domain extension impact SEO standards
Share5Tweet3Share1Pin2

How Enterprise Blockchain can enable Privacy Preservation

How Enterprise Blockchain can enable Privacy Preservation
Share5Tweet3Share1Pin1
  • Terms of use
  • Privacy Policy
  • About Us
  • Contact us
  • Write For Us
  • Cookie Policy

© 2022 All Rights Reserved

No Result
View All Result
  • Tech news
  • Startup news
  • Artificial Intelligence
  • IOT
  • Big Data
  • Cloud
  • Data Analytics
  • Machine Learning
  • Blockchain
  • Social Media

© 2022 All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Cookie Law Notice
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT