Exploring reasons software users churn and tactics to improve retention. Check out our live episodes and articles on SaaS customer loyalty.
It may seem like a no brainer for retention, but can impact your churn rates is getting the right customers. Marketing to anyone just to increase numbers can backfire.
Data and analytics can make you better than a fortune teller when you determine activities that happen before someone cancels then start to watch for them and act.
Your support team is there to help reduce churn, but how do you utilize them to constantly improve retention for your software product.
A dashboard can be a central location for your users and their stepping stone into your product every day. The right dashboard strategies can influence churn rates.
Pricing can not just influence bringing on new customers and your conversion rates in sales, but also how long a user stays and whether they evaluate cancellation.
Retention has to be owned by someone in the organization. It is so imperative to growth that it needs to be responsible and accountable.
Our process of mapping a customers experience from sign-up to cancellation and determining how to improve their experience at every step unlocks the issues causing churn.
Customer service is the oxygen of your user's experience with your product. There are lots of ways to handle customer service and picking the right one can keep or lose a lot of customers.
In today's age we can see everything. Tracking the right information in your product, creating funnels, recording sessions, and setting up alert systems can significantly impact retention.
What features should be next are not just a cool experience of writing code, but should be a strategic exercise in making decisions that will keep users.
As SaaS companies we are often selling our products as monthly or annual subscriptions. Ensuring users renew their subscriptions or don't cancel is the act of retaining them.
This can be one of the most important strategies for a SaaS company as when a lot of users are lost consistently, it makes it very difficult for the SaaS company to be successful.
Think of it this way, there was cost in marketing and sales to acquire the customer and any profit made per month must not only cover the per customer cost but also pay back the acquisition cost. If you are losing customers too quickly, often the acqusition cost can cause a loss or it takes to long to scale your customer base.
For SaaS companies, retention is an important strategy that must be taken seriously and dedicated resources applied on a consistent basis to fight the loss of customers.
The series we have created here on SaaS Retention is all about the strategies and tactics a SaaS company should be using to reduce their churn and increase retention.
In many cases the opposite of retention, churn rate is really the metric of lost customers over a month or year. Most companies track their churn rate and set goals to reduce churn rates to a certain amount.
The trick is that there are different ways to calculate and look at churn, so often industry standards are not something easily determined which is what most SaaS companies want to match.
The strategies and tactics to retain users are how we reduce churn rate.
Yes, churn is inevitable - every customer will abandon your product eventually. But boosting your retention is more fun - and way more valuable - than acquiring more customers.
One of the key metrics we look at when deciding whether or not to provide capital to a SaaS company is retention. It is so important, in fact, it is a standard covenant in our committed credit facilities.