6 Customer Retention Tips for SaaS Business Success
For every business, the goal is to survive the stiff competition and stay on top! This goal gets fulfilled when various factors come into play, and business owners understand the dynamics on which the world of business survives. One such factor in the success of any business is their customers. Customers are the most critical asset of the business, and returning customers are the factors that give your business an edge over your competitors. If you don’t agree, we have the below fact to back up our claim.
If a business increases its customer retention rate by 5 percent, their profits will increase by 25-90%. – Harvard Business School Research Archive
The customer is king, and a king never bargains! This quote has been doing rounds for many years now. What the creator of this quote didn’t think about is the fact that a king never bargains because he kills and captures kingdoms!
Yes, the customer is your king, because he rules the pricing strategies in the market. His demand for a particular product or service allows you to make your play and earn profits out of it. In simple language, let’s go with a simple quote; the customer is the ultimate king!
Customer retention and its importance to business – A brief introduction
Today, where the market is filled up with competitors who will eat up your share of customers in a blink of a second, as a business owner, I know your dilemma is whether to focus your resources and attention towards business growth or retention.
I would suggest a balanced approach towards increasing your customer base as well as focus more on retaining your customers base that you have made after making so many sacrifices, putting marketing and sales efforts. After all, why shouldn’t you reap the benefits of all the hard work you have done.
Tips for SaaS business owners for success
Let’s begin the transaction of information about the top customer retention tips that every SaaS business owner must consider for ultimate success.
1. Communicate frequently yet wisely
Over a particular time, your customers will start losing touch with you! This may happen due to two primary reason, either they are happy with your offerings, or they have moved on to an alternative.
To avoid losing your customers, start building a post-sales relationship by staying in touch with them using timely email or text messages. There are various systems in the market, including CRM’s that enable its users to send out emails, text messages thank you cards or notes with a personal touch.
Such a system allows users to send out emails or messages regularly and automatically at pre-defined points, such as pre-sales, sales, and post-sales. Using such a technique, you not only avoid bombarding your customer with emails but also successfully make them feel relevant to your business.
2. Providing extraordinary customer service
Provide the most exciting and satisfactory customer service to your customers is a continuous journey. As a business, you learn for the changing dynamics of the market and make sure that you do not leave any stones unturned while providing the best customer service.
Delivering higher than expected customer service show your dedication towards customer satisfaction. Moreover, this must be shared by every salesperson in your organization.
Extraordinary service builds empires and keeps the repeat customers ratio higher in any organization whereas poor service will push your customers away from you; towards your customers (scary thought isn’t it).
Your extraordinary customer service depends on the following factors:
- providing immediate response
- consistent on-time delivery
- delivering what was promised; before and after the sale
- an error-free-delivery process
- recruiting smart and understanding sales people who will deliver such customer service
3. Take complaints as an opportunity
Disappointed customers won’t give you another chance if you cannot prove their money’s worth! They will walk away from your business leaving you clueless about why it happened. Although there are many reasons, customers didn’t reach out to business with their complaints, having a smart contact management system helps in unearthing these complaints at earlier stages.
Customer who approaches you with feedbacks of any kind or with complaints is providing you with a precious gift. When you receive any feedback or complaint from your current customer base, be happy that they decided to talk about the problems they are facing with your product rather than finding your alternatives. It is like another opportunity to provide them with ultimate satisfaction and delight them for creating a paramount degree of customer loyalty.
4. Enhance your customer’s experience
If as a business, you think that your customers are subscribing to your services just because of your software then you are mistaken; they are subscribing to experience it.
How much service is involved in your SaaS product? Consider ranking this question based on your software’s
- purchasing process,
- subscription renewal process,
- customer service
All of the above-mentioned factors create the overall customer experience of your SaaS product.
Any negative experience diverts the customer towards finding your alternative, whereas every positive experience pushes them forward to be part of your loyal customer base.
5. Work on feature improvements that make a difference
As you grow your SaaS user base, the need of upgrading, removing and bringing few features will arise. Although it may seem tricky to decide on the feature list, you have the best opinion poll available with you; your loyal customers. Sending out feedback forms regarding their usage and collecting the data of what features they use and would like to see in future updates allows you to decide development cost, time and resources efficiently. Doing so also helps you impress your customer by making them feel an essential part of the product development decision-making steps.
6. Use automation to reconnect with your customer base
Reducing churn is a real deal which every SaaS owner has to take care of simultaneously while making his offering better and creating more sales. While managing old and new contacts, assigning deals, following-up with prospects, any SaaS business owner is bound to lose their grip on real-time events.
Automation has been transforming the industry in a very positive manner. Pushing feedback forms, sending out thank you notes, sharing deals and discounts based on purchase history, automation tools have been making business process real safe and smooth.
What automation also does is surprises your customers in a way they like it! The question arises what type of surprises can be provided to the customers?
I would suggest that you must go with something that is relevant to your offering and make it more meaningful. I am sharing a few ideas here, and you can improvise on them.
- Surprise your users with free features
- Give them extra storage for a few months
- Give them an extra free month
- Provide a certain percentage discount
Every SaaS business owner must spend an equal amount of time and resources towards customer retention. You must keep a tab on their social media pages, should keep checking their complaint or feedback emails.
Today, SaaS business has been reaching ultimate success using various tools helping them maintain a smooth business flow. With cloud storage and security, you can keep your important files accessible from any place and on any device. Keeping a tab on your customers’ activity, your business deals and your sales teams’ performance in real-time has also become more accessible than before.
SaaS businesses that work with a limited budget do not realize that there are various budget-friendly tools available in the market that can help them maintain the constant touch with their customers and at the same time allow them to work towards achieving their revenue goals; without putting in much manual labor.
I hope this article has shed some light into how you can use a modern SaaS tool to make your SaaS business maintain its loyal customer base, without breaking much sweat. Till next time!