SaaS churn is a percentage rate at which SaaS customers can cancel their recurring revenue subscriptions. SaaS churn is known as an essential parameter in the forecasting of revenue. It is also a key to the SaaS metric of historical business performance. The probability rate at which the customers might cancel their subscriptions can be gauged by SaaS churn. However, measuring the SaaS churn can always be complicated with various parameters like high churn rate, low churn rate, variety of customer type, high growth rate, variety of contract MMR value, and much more. The excellent pace of SaaS churn for small businesses can be 3-5%. The more significant company is, the lower the SaaS churn rate is expected.
Why is churn important in SaaS?
The SaaS churn is significant as customer churn is a necessary metric to be tracked, as a lost customer equals lost revenue. There is a severe impact on the bottom line if the company keeps losing its regular customers. It is a vital need of an hour to monitor the SaaS churn rate for the survival of any business. SaaS churn metric is used by multiple companies, from SMEs to large companies too. SaaS churn is one of the key factors to examine and know the right reasons for the growth or drop of your business.
How to retain and win back SaaS customers?
Building a business is simple, but sustaining it profitably is a task. When you think of building your business, you think of a product to be sold to customers and increase the customer base for better sales. But this is just one part of the business. Retaining your customers by using methods like SaaS churn and creating a database of loyal and repeat customers is much more important for generating better revenue. Just as we work to build a new product, we should keep investing time and money in creating dedicated resources to retain existing customers in multiple ways. This is where the SaaS churn metric comes into play.
Let’s look at some methods to win back the customers.
Onboard Efficiently with Top Priority
The first and foremost step to formulating customer retention by SaaS churn metric is by providing them with efficient onboarding. A thoughtful onboarding of customers is indeed a good investment to make for any company, as this is eventually paying off. It is essential to keep things simple for the customer. It is advisable to streamline the process of onboarding your customer by providing them with a clear explanation about the use of a product or a service. The first call to action of any customer should be quick and easy. If impressed, this customer will eventually be one of your SaaS churn customers.
Delivering Easy Help and Instant Assistance
I will never forget my experience of surfing on one site and finding a resource or support to help me with my very frustrating order issues. Therefore, it is essential to have a customer-friendly experience to see everything easy on your website or application. Making it easy for customers to have instant assistance via live chats and well-prepared FAQs will help them arrive at their answers instantly, which might help you retain this SaaS churn customer. This SaaS churn metric can help you gauge the loss of potential customers because of their problems.
Prioritize Customer Success
Being a SaaS provider and a specialist in SaaS churn tracking, it is essential to know the difference between Customer Success and Customer Service. The company should prioritize customer success for better retention and revenue. If you start focusing on customer success, you will automatically build potential customers who are willing to buy more, more often and refer the brand to their customers. The focus on customer success needs to be constant, as helping the customers utilize the SaaS churn solutions is the key for subscription renewal. It is vital to building your team to examine the customer needs and their lifecycle. This team should keep track regularly of customer interface, customer experience of handling different features and improving it for better SaaS churn of customers.
Reward your customer
Thanking your customer in even future by offering something extra can always make them feel joyful, loved and hence they would want to come back to the brand and prefer it more often for the benefits they get after shopping with you. The offering does not need to be expensive; it must be valuable, like reward points, discounts, and some unique offerings for members only. These small activities can be carried out to retain your SaaS churn of customers and have a healthy relationship built with loyalty and trust.
Follow up on your sales.
Every one of us wants to feel special. And especially after registering an issue about a product. We all expect the company to go the extra mile for us and help us with the solutions. Once all the problems are rectified, a courtesy call from the company again to ensure smooth functioning after the issue was resolved makes them genuinely care for their customers. These small actions make a lot of difference and can help you win back your disappointed customer. SaaS churn indeed plays a significant role to generate revenue.
Upgrade the service
Many a time, companies are busy earning and gaining new clients, while other companies may be offering more value to the product in terms of features, additional services, and pricing too. Hence, it is necessary to add value to your services timely by upgrading them with a new feature or some other value addition. Create awareness for customers about SaaS subscriptions to get better benefits and help in SaaS churn the potential customers back to your brand.
Conduct Exit surveys
There is very little to be done to retain customers, and SaaS churn is inevitable in some cases. Sometimes losing a customer can be taken as a lesson too. It is essential to utilize that moment by learning how to improve the process. Asking few helpful questions can undoubtedly give you a good amount of data to study and analyze your SaaS churn pattern and methods to retain.
SaaS churn is indeed a great solution to retain your customers and win back the old ones. SaaS churn helps in knowing the worth of potential customers responsible for giving you much more revenue than you are presently earning. As reported above, the SaaS churn methods can be cost-effective too, and you don’t always need to put in a lot of money to win back your SaaS churn customer. Always use the latest tools, solutions, and services like SaaS churn to better your business.