Tips for creating an effective customer retention strategy and ensuring efficient customer success management within your team.
SaaS founders understand that conversion rates and the acquisition of new potential customers are important. Generating subscriptions and sales is essential for increasing monthly revenue.
However, retaining current customers and minimizing churn is just as crucial for your business's long-term success and growth. That's especially true for SaaS firms and startups, where a significant portion of the revenue comes from ensuring customer success and maintaining ongoing subscriptions to the product or software.
ChurnKey is here to help you fight churn every step of the way. Read this guide to find out how to discover and effectively overcome churn challenges.
The term "churn rate" describes the percentage of customers that cancel or don't renew their subscription during any given time (month, quarter, or year).
If your SaaS company's customer or revenue churn becomes too high, you are risking losing money and stalling your company's overall growth. On the other hand, keeping churn rates low will improve your monthly recurring revenue (MRR) and fuel more sustainable business growth rates.
If you are running a subscription-based SaaS business, you are constantly fighting to keep your churn rates at bay.
While what's considered a "high churn rate" can vary from business to business, there are certain red flags that might indicate that you have a problem:
If you feel like your churn rate presents challenges to your SaaS company, don't get discouraged. You can use specialized software and tools like ChurnKey to identify deals that do and don't convert and develop personalized strategies to guide more users to stay, cut costs, and boost your sales.
Here are a few additional tips for creating an effective customer retention strategy and ensuring efficient customer success management within your team:
Price is one of the biggest factors determining churn rates for businesses or startups. Products and services that require more money upfront tend to see a lower churn metric, as consumers are less likely to make a quick and impulsive purchase decision.
On the other hand, subscriptions for longer periods of time (several months to a year) result in lower customer churn and better retention rates as well:
An effective customer retention strategy starts with onboarding.
When consumers sign up for your software, don't just leave them wondering how to set everything up on their own. Instead, it is better to proactively guide them to ensure customer success, even several months after the sales process is complete.
An onboarding process aims to prevent people from signing up, trying the tools or services once, and then never logging in back again. Instead, it is essential to make sure that the customer doesn't forget about you.
A good tactic here is to send scheduled emails throughout the entire onboarding period of time to check in with the user, answer their questions, and share articles or lessons with relevant and useful information.
You can improve consumer engagement by maintaining a continuous conversation between the user and your business. Here is how:
The most important thing to keep retention rates high and ensure your company's growth is to guide users and provide them with the best service possible. The quality of your service will translate into improved customer success rates and customer satisfaction levels, which, in turn, will lead to lower churn.
Offboarding is the process that the users go through when they unsubscribe from your service. Basically, anything that happens after they click the “Cancel” button. Here are a few ways that you can turn offboarding in your favor:
ChurnKey software is the tool you need for taking your users' offboarding to the next level. Not only it allows you to track when free trials lapse and find out why users decide to cancel, but it is also instrumental in creating personalized offers to incentivize more people to stay.
Founders of SaaS companies and startups know that every customer counts for the long-term business success and growth rates. ChurnKey helps you improve customer retention rates and fight churn by offering meaningful insights and creating customized offboarding experiences. Get started today.