Revealed: 8 Quick Ways to Improve Your Customer Retention Rate for SaaS
Customer retention is a critical component to the success of your business. Here’s the 8 quick ways to improve your SaaS Customer Retention Rate.
Jun 1, 2020
Customer retention is a critical component to the success of your business. It entails the maintenance of continuous business relationships with customers over an extended period. Conventionally, Customer retention refers to the number of customers doing business with a company at the end of financial years and expressed as a percentage of those who have been active customers since the start of the year. In this Article, we have revealed 8 quick ways to improve your SaaS customer retention rate.
The benefits of SaaS customer retention rate to your company include increasing sales as tenure grows, lower customer management costs in the long run, and getting customer referrals. Hence, the retention rate is directly associated with the profitability of your business. Businesses that manage to implement effective retention strategies tend to increase their sales and minimize customer management costs resulting in high profits. Some of the quickest ways to improve customer retention include;
Establish Customer Expectations
Customer services are not only about attending to inquiries and complaints but meeting the expectations of the customers. As such, a business needs to focus on understanding its customers. It is essential to understand what the customers’ desire and utilize it as a foundation for setting their expectations. Setting customer expectations gives a client something to look forward to from your business. However, it is critical to set reasonable expectations to ensure that you do not overpromise. Indeed, “the first step in meeting expectations of client, is to know those expectations,” as argued by Roy Hollister Williams. Therefore, take the first step and understand the expectations of your customers.
Concentrate on Customer Delight
It isn’t easy to sustain a long-term relationship with customers if their desires, needs, and expectations are not well met. Setting the expectation of customers must be accompanied by exceeding them. Delighting customers refers to going beyond the average satisfaction of the customer. It is dependent on the perception of the customer concerning their experience of doing business with you. It is significant to meet and exceed the expectations of the customers beyond general expectations, such as price stability and product quality. Focus on customer expectations based on the attributes that the client believes are significant.
Use loyalty schemes to add-customer perceived value
A loyalty program is an initiative that offers an immediate or delayed incremental reward to clients for their continuous and cumulative patronage. The programs encourage customers to spend more to earn higher rewards. One of the common loyalty schemes is loyalty points. Customers register to get a loyalty account so that as they use the services of the business they earn points based on the amount spent. These points are later transformed into different rewards that the company decides, for instance, a free voucher. The loyalty scheme keeps the customers coming back because they target the highest prices associated with the reward.
Build customer engagement
Research shows that customer satisfaction is not adequate to guarantee customer longevity. As such, it is critical to enhancing customer engagement levels of your company. High engaged clients have secure emotional and rational attachment or commitment to the brand. Customer engagement is enhanced by giving priority to customer experiences and humanizing your brand. In the era of technological advancement and social media, it is essential to utilize social media and get sassy. Customer engagement also entails the development of useful content that provides value not only for the company but also for the customers. Building customer engagement creates exquisite experience among the customers to ensure that they are resistant to any competitive influence.
Bond with the customers and build trust
While customers value the quality of a product and services offered by your company, familiarity, comfort, and friendliness are equally important. Research shows that 70% of customers’ buying experience is based on their feelings and perceptions concerning the treatment they receive. Therefore, it is essential to make ones business-friendly and create an impression of an accommodating partner in the eyes of the customer. Through a personalized relationship with the customer combined with other factors such as quality and effective communication, trust with the customer automatically develops. As a result, the customer will become a loyal customer since people like using services or purchasing products from businesses they trust.
Conduct customer feedback surveys
Surveys are potent instruments for enhancing customer engagement and SaaS customer retention rate. It entails hearing from the customers how they feel about the services and products of your company to promote engagement and bonding. A survey creates an understanding of the strengths and weaknesses of the business to facilitate improvements. It helps to remove eliminate the challenges that may affect the maximization of customer experiences. Indeed, customers like when a business makes improvements where there are weaknesses. Besides, surveys empower the customers since it makes them feel that the company values them.
Value customer complaints
Do not wish away or run from the clients who complain because they are a significant marketing asset. The complaints help the business to identify defects in services and products offered to facilitate improvements. That is, complaints reveal the aspects that require improvement in the company. Moreover, complaints help you to understand the essential attributes that the customers value and their expectations. Subsequently, it helps you to meet and exceed the expectation of the customers. Research shows that the customers who complain are ready and willing to stay if their complaints are resolved. Therefore, if you want to retain your customers for long and increase SaaS customer retention rate, give attention to the complaining customers.
Keep your customers informed
Alert your customers to product updates, promotions, and reward programs that you believe they may find relevant and exciting. It is essential to keep your customers informed because it creates a perception that you remember and appreciates them. Show the client the progress and improvements of the business and give them helpful information associated with your company or product or services. Keeping customers informed, promotes customer loyalty and retention because it ensures that the customers also remember your company. Besides, it markets new services and products to the customers who may come back to purchase them based on their needs and desires. As such, customers will continuously come back for your services.
Anshi has over 12 years of experience in demand generation, digital marketing, and managing global teams. In her prior role as head of marketing operations for a high growth US healthcare tech organization she transformed marketing from cost to revenue center.