Customer Retention for SaaS Companies
Retaining loyal customers is no easy act. While it's impossible to keep every customer happy, there are many ways to increase their loyalty towards your business.
SaaS Companies Live off Customer Loyalty:
Customer loyalty and long term value (LTV) create a recurring income stream. The higher the LTV, the healthier the business. Since customer retention is more cost-effective than acquisition, SaaS companies need to hang on to their customers! Increasing customer retention by as little as 5% can boost profits by as much as 95%.
How can your business optimize existing customers for profitability, while keeping customer churn to a minimum? Check out these strategies for retaining and delighting current customers:
1. Open Communication
Provide personal, real-time customer-engagement with a Communication Platform (CPaaS) strategy to stay relevant and profitable. Today's customers need to know that they can have a meaningful conversation with your brand in a variety of different ways, including SMS, phone calls, via traditional mail and email.
2. Create a Partnership
With all of the communication opportunities CPaaS provides, is your team still only reaching out to customers for billing inquiries or upselling? Step up your customer service game and call customers to see how things are running. Allow for a space where they can clarify, ask questions, or talk about a product or feature that may not be performing the best for them. Listen to your customers and create a partner approach!
3. Follow Up
Even after the problem has been resolved, follow-up with the customer to see how everything went. “Hey there Mike, we helped you solve an issue last week. How is your program running now? Anything else I can help with today?” Taking a few minutes to dial back in with customers after an issue proves that you care and want the best for them in the long run.
4. Reward Your Advocates
If you spot an exceptionally great review from a customer or a thoughtful recommendation of your product on social media, send the love right back! Simply reaching out and replying back with a “Thanks for sharing!” shows you’re actively paying attention and that their words are meaningful to your product’s reputation. Don’t underestimate the power of “thank you”.
Retaining loyal customers is no easy act. There are no shortcuts or easy hacks to build business relationships. Current customers can provide great value for your business; word of mouth referrals, case studies, and a strong customer satisfaction rate. While it's impossible to keep every customer happy, there are many ways to increase their loyalty towards your business.