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The Challenge of Retaining SaaS Customers
Jun. 20, 2024
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A problem that SaaS companies face is being unable to hold their clients for a long time. Now, it doesn't mean that companies fail to build permanent relationships with their clients, but there is something else that takes extra effort to retain customers.
What is it? It is the subscription model of SaaS companies. Mostly, their clients go with a monthly plan, and that's to test the product first. So, the SaaS company has to ensure the client retains after the trial period of 1 to 3 months.
So, in this blog, you will learn how to retain customers in your SaaS business and fight customer churn.
What is SaaS Customer Retention?
Calculating Retention: The Formula
Fighting the Battle Against Customer Churn
1. Collecting Insights from the Right People
● Decision Makers: The Key Players in Retention Decisions
● Users: The Daily Drivers of Your Product
2. Crafting the Right Surveys
● Product NPS Survey
● Product Experience or Feature Launch Survey
● Relationship NPS Survey
Another survey in the list is the relational NPS, which is important for having a bird's eye view of the relationship between you and your clients. While the users should also receive this survey, sending it to the decision-makers is necessary to maintain an overall relationship with the client. You can simply gauge the insights about some important aspects, like the product being valued for money, how well it performs, or how good you think the customer support team is.
These are the important surveys to ask both users and decision-makers.
- Subscription cancellation survey
- Onboarding survey
- Product market Fit survey
However, you may think sending and managing all these surveys is a big task. But with a Net Promoter Score tool like SurveyCXM, you can streamline it easily. This powerful tool makes sending surveys and receiving their responses easy and generates insights and reports.
3. Boosting Engagement: Enhancing Your Survey Response Rate
To manage the churn, you must identify the right problems. But with a smaller sample size, you may get on the wrong path and solve problems that are not the reason behind the churn, at least.
Hence, you need to get more responses to be accurate with the problems you choose to solve. You should strategically time the survey to get more responses, as we discussed above. It ensures the user or decision-maker has enough time to answer the questions. It also eliminates the entries that could be entered into the data. If they aren't involved in the survey, you can try to get their response with a friendly reminder.
4. Turning Data into Action: Analyzing Feedback
Lastly, you will have all the data, and it's time to analyze it. At this point, you should follow a procedure. Firstly, segregate the responses to find the detractors, as they are the ones who are more likely to churn. Now, analyze their open-ended responses and get directly in touch with them to better their problems with the product.
In the end, when you are done solving the problems, inform the customers about the changes and start it again, as it's a loop that has to continue.
Enhance Customer Retention with QDegrees’ Expertise
In conclusion, enhancing SaaS customer retention requires strategic feedback collection and analysis. Many things can fail retail clients. One of these is the lack of a great customer experience. Here, you should utilize QDegrees' customer experience measurement services to reduce churn and improve satisfaction. Partner with us to understand your clients better and foster long-lasting relationships.