Smart Idea 4: Focus on your paying customers and reduce your churn rate
5th April 2016
Our recently published white paper: 7 Smart Ideas to Grow your SaaS Business contains leading edge information on how to grow your SaaS business. Here we look at one of the ideas:
Smart Idea 4 : Focus on your paying customers and reduce your churn rate
Another key metric that we haven’t discussed yet, but which is crucial to SaaS company growth and we will explore in greater detail now, is customer retention. With a service based business, keeping your customers and increasing their value is critical to expansion.
Once you’ve got a customer on board, your next challenge is to keep their business. Nobody wants to lose a client, however it’s easy to assume a customer is happy – and therefore lapse communications with them – when they’ve signed up on a monthly subscription basis.
Never forget that the pursuit of growth rests on retaining and nurturing existing customers, as much as securing new ones. There are a number of techniques you can use to forge stronger bonds with current clients, including:
Regular communications with existing customers via email – use a combination of thought leadership and sales messages so they don’t think they’re being constantly ‘sold to’ by you
- Create an account management team to look after key clients and establish a programme
of regular phone and face-to-face contact
- Encourage customers to follow your business on social media and update your networks
regularly with informative content
- Use in-app software such as Intercom to track how clients are using your product and
market to them based on this data to engage with them in a more meaningful way