How to Fix the SaaS Leaky Bucket: 10 Essential Customer Retention Strategies
Know why Customer Retention Strategies are a big-time savior when it comes to simmering down on the bulging churn rates. Here is a master list to sort it.
Jul 9, 2020
To affix the leaky bucket in all of the SaaS companies, the customer success team delves into a number of customer retention strategies. Being a critical facet to the success of your company, it helps to keep your churn at a minimal stance and enhance your revenue bars. Here, in this blog, we tell you the top 10 such essential suggestions that you can implement.
Plan your Targets and Goals
To fully understand the real concept of customer retention, you will have to begin by identifying what is a great customer retention rate. Everyone out there would love to have a cent percentage retention, but how to actually bring it to the papers.
You can begin by establishing a retention rate after the acquisition. Set new targets for newer clients. Give special emphasis to the higher customer lifetime value (LTA) customers, for having sailed through a larger chunk of time.
Discounts or Loyalty programs to the rescue
These are some of the initiatives that can render you, clients, with an immediate or slightly lingered incremental reward for their constant patronage. Such types of programs entice your prospects to spend a little extra, however, they can earn higher rewards with that.
For that, a client will have to register themselves so that they use the services of the business they earn the loyalty points based on the amount spent. Then they can later use these points when they accumulate. Or better yet, you can promote a few free vouchers every now and then, so that they keep coming back. This way you can pull the strings of customer stickiness.
Building trust and relationship
Statistics claim that around 70% of the buyer’s retail experience is based on their perceptions and experience they receive. Goes without saying, it is more than essential to building a friendly relationship with your clients. Strive to create a business-friendly impression of a helpful friend from the point of view of a customer.
Although a relationship with personalized effects, when coupled with a multitude of other factors such as communication, quality, and perseverance, trust, is not far off to be built. You will always have to pay extra heed to the trust bar and see that it does not take a backseat.
Alert and inform your clients
Keep your customers informed regarding any product updates, any upcoming promotions, or any loyalty programs from which they could benefit well. This will help them to create a feeling that they are remembered and we are here to take care of you. Trust me, it makes a lot of difference in the longer run.
Show them how well has your company prospered in recent years and how they have been an active part of it. Not just that, it additionally helps to market new products or services to the clients who might come back to repurchase the items based on their desires. Pep up your customer retention strategies with this note.
Upsell and flourish
In any given SaaS company, upselling and cross-selling are both very vital terms. It is important for many reasons. One is, that it cuts down on the customer acquisition costs and two, it increases a good revenue value. Some of the recent research claims that it is upselling which are some of the useful components of faster-growing SaaS companies.
Moreover, it will help to increase your relationship strength with the clients and enhance the customer’s lifetime value too. This technique is simple, you will just have to analyze who likes your customer retention strategies and SaaS products more.
Customer retention strategies – Metrics and KPIs
One of the biggest customer retention strategies used to cure the leaky bucket is paying heed to product usage metrics and key performance indicators (KPI). They allow you to track relevant and substantial information. Aside from this, they determine whether you are on the right track or not, and if not then how far are you from the right path.
For most of the SaaS companies, the massively used KPIs include churn rates, monthly retention rates, customer’s lifetime value, and growth of revenue to name a few. Ensure that you track the data thoroughly using accurate analytics.
Hear out your Customer’s Feedback
Do not just run away from the nagging complaints of a customer. Customer retention strategies are all about patience. It cuts a really sorry picture of your company and you would not want that to happen. Hear out what your customer has to say and know how they feel about your services and products.
Understand the strengths and weaknesses, and you will be in a better position to facilitate improvisations and can remove the challenges that fall your way. Seal your leaky bucket with steadiness and patience. Clients absolutely love it when they see a business making improvements in spite of the weakness, which actually makes you stronger.
Yes to Customer Satisfaction!
You can satisfy a customer by truly understanding their needs and desires. Setting the tone of expectations must be accompanied by exceeding them. You will have to go beyond just the average levels of satisfaction of the customers. Delight them with the best of your capabilities.
It is of high pertinence that you meet and also exceed the expectations of your customers. Be it in terms of product quality or be it in terms of price stability. All you have to do is focus on the attributes that the clients think are of higher significance.
Priority to Customer Experience
High engaged customers have that rational attachment and emotional commitment to your brand and you know it. Of the many customer retention strategies, truly helpful one is putting a laser beam focus on the customer experience. It really matters a lot in all of the SaaS industries.
You will have to humanize your brand. Further, you can also take to social media and market to the online platforms about the greatness of your company. Building a great customer experience creates ensures that your client is resistant to any foreign competition.
Customer retention strategies are a must when it comes to the subject of customer success. You will have to regularly monitor the experience that you cater to the customers. Now and then, set up feedback and see where you stand. When the aforementioned 10 points are followed religiously, you are half the way to receive the best in the business.
Simran hails from the content marketing backdrop with extensive knowledge in blogs, articles, and technical whitepapers in the non-fictional domain. She uses her 'gift of the gab' to explore new possibilities on her way and to make an exquisite impact on her readers. In her spare time, she likes to read journals on artificial intelligence or play with her cute kittens. You can connect with her on LinkedIn here.