Top 4 Customer Retention Strategies that Work Wonders for SaaS Businesses
Top 4 Customer Retention Strategies for SaaS Businesses
Research shows that only 18% of the companies work on customer retention management while 40% are focused on customer acquisition. Customer retention management is driven by customer retention strategies that are thought to be effective for making customers happy and satisfied to make them retain for a longer period of time.
Customer retention strategies are both art and science, theory and practicality. There are multiple customer retention strategies that are available all over the Internet and it takes a good amount of time to think of the best strategies. So, here we are to implement the best strategies for your business.
Have you set your customer retention KPIs for your SaaS business?
We have asked you this question because it serves as the core element of customer retention management. Key performance indicators are critical for determining the health and growth of business as merchants can analyze the performance of customers affecting the business through analytics.
For every SaaS business, the key performance indicators can be different depending upon the nature of the business. Nonetheless, there are some of key performance indicators that are common for everyone and therefore we are going to discuss some of the customer retention KPIs here for your business that you should keep checking.
The first KPI is customer retention rate in which you calculate the number who are using the product over a certain period of time.
The next KPI is churn rate or determining churn scores. The churn rate calculates the percentage of customers who stop using the product or service of your business.
Another important metric is the average order value. Even though it is not directly linked to customer retention but it is linked to business health and business growth through revenue management. AOV is the average value that is gained when a customer places an order at your website or buys a product or service.
Customer lifetime value or LTV is the amount of revenue generated from a customer in the entire period. It tells about how much a customer has spent on the product and its value as well.
Customer retention strategies
Let’s look at the customer retention strategies that you can use for your SaaS business.
Build Customer Loyalty
Customer loyalty makes customers returning customers and long-term customers. however, it is not a matter of overnight as it takes a lot of effort and value from the business’s end to deliver to the customers. to build customer loyalty, the value of the business along with the features and solutions matters and play a critical role.
This can also be implemented by offering your customers exclusive benefits and offers such as discounts, offers, reward programs, and much more. It gives that not only customers are loyal to the business and are about them but the business equally values its customers.
Therefore, building customer loyalty programs, offering to customers, and deriving results out of them can help improve the customer retention rate.
Leverage customer data
Tools and analytics can be your best friends if we talk about customer retention management and customer retention strategies as they will help you in determining and sharing the strategies to successfully retain the customers.
But how can you do that? It is important that you have integrated a customer success platform into your business system so that with the robust analytics and report generation, you can use customer data to implement customer retention strategies for your SaaS business.
You can also download analytics reports and summaries to have a more holistic understanding of the customer data and the customer behavior as well.
Offer personalization and customization
Personalization and customization are based on segmentation and categorization of customers. offering personalization and customization to the customers make them feel important. You can offer personalization to customers on the basis of segments such as old customers, new customers, and much more.
You can also launch personalized campaigns for the customer and audience you want to target. This would help in formulating the strategies and outreaching to your customers more effectively.
How SubscriptionFlow will implement it for your website?
SubscriptionFlow is a subscription and revenue management platform that focuses on the small to mid-range businesses working on a subscription model.
Not only this, but we also offer a customer success platform that further renders services of customer retention management and churn reduction. Using strategies and customer retention tactics, the customer retention rate of the businesses is significantly improved.
Our in-app RetentionFlow is specifically built for seamless customer retention management in which you can get real-time analytics, monitor churn scores, set churn factors, and download reports for your business. There are event types that you can select to set a preclude for churn scores and every time that event occurs by a customer, it will calculate the churn score on the basis of that.
Schedule a demo with us now to have a walkthrough of every feature and solution essential for customer retention management of your business.