13 Strategies to Boost SaaS User Retention and Renewals
Actively working to improve your retention rate is the difference between growing your SaaS company and running it into the ground.
Most SaaS companies consider customer acquisition to be the best solution for growth, so they focus all their efforts on it, disregarding customer retention in the process.
As much as 70% of SaaS founders state that customer acquisition is their biggest goal, with only 20% choosing to focus on customer retention instead.
However, actively trying to improve your retention rate can mean the difference between growing your company and running it into the ground. The CRM giant Salesforce dealt with this in 2005 after realizing that they were losing almost ¾ of their customers every year.
By focusing on acquiring new customers, they were not giving enough attention to their existing ones, leading to a monthly churn rate of 8%. This was making it very hard for Salesforce to grow. After changing their focus to improving retention, they were able to accelerate growth.
Salesforce’s example isn’t the only proof of the importance of working on your company’s user retention rate. It’s been shown that improving retention rate by 5% can increase profit by as much as 95%.
It’s clear that working on your customer retention rate is crucial for growing your SaaS company.
Let’s look at the specific strategies that you can use to improve retention rate.
Table Of Contents
Tip 2: Revise Your Pricing
Tip 3: Optimize Your Onboarding
Tip 4: Set User Expectations
Tip 5: Customer Service
Tip 6: User Feedback
Tip 7: Communicate Regularly
Tip 8: Rightsize The Package
Tip 9: Loyalty Programs
Tip 10: Make Surveys Simple
Tip 11: Educate Your SaaS Customers
Tip 12: Customer Retention Team
Tip 13: Exit Interviews
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