Unleash the hidden power of feedback to proactively combat SaaS churn. Discover how this often overlooked tool can become your secret weapon in retaining customers and ensuring the longevity of your software service.
Customer Satisfaction is the Leading Indicator of SaaS Success
Gives you a fuller picture of success
- Metrics don’t tell the whole story, but customer satisfaction does
- The best way to gauge customer satisfaction is through feedback from your user base
- As your company grows, it becomes harder to stay close to the customer
- If you don’t seek customer feedback regularly, you won’t understand what you’re doing well and what you need to improve
Insights Based on Customer Segmentation
Recently Churned Customers
- Why are customers churning out?
- High LTV customers
- They have the highest lifetime value and demonstrate willingness to pay for your product
- Most Engaged Users
- These engaged users are not necessarily the ones who pay you the most money
- Disengaged Users
- These users were at one point convinced that your product held the answers to their problems
- Understanding what their problems are and how you could potentially solve them is where your retention strategy gets its meatiest feedback
Reactivation Campaigns
If you have already gathered direct feedback on why customers have churned, you can use that as guideposts for improving your future efforts-starting with the same churned customers who gave you the feedback.
- You reactivation campaign should address the objection (the reason for churn), the solution (the improvements), and underscore the benefits that your product offers.
Build an Informed Help Center
Qualaroo has a comprehensive library of resources to help customers, from the first steps of enabling the product on your website, all the way through to Advanced topics and strategies.
- As the patterns emerge of what customers need help with, you will start building out a tailored list of articles.
Improve Customer Sentiment
Even the act of conducting a survey can positively impact customer perception
- The very process of asking people their opinions can induce them to form judgments that otherwise wouldn’t occur to them-that they really do like a company’s estate-planning services, for example. These so-called measurement-induced judgments…can influence later behavior.”
Conclusion
It is imperative for future success to implement a regular practice of gathering customer feedback
- In doing so, you will identify your most ardent supporters, engaged users, and effectively peel back the layers on why customers love your product.
- Each data point gathered can help you improve your shortcomings
- You will be better-equipped to anticipate and address your customer needs and retain them with greater success.
Tactics for Applying Feedback to Churn
Get a handle on customer retention is the first imperative to sustainable SaaS growth.
- A general framework for how to strategically address customer needs and effectively reduce churn
- First step to establishing a customer retention strategy is to gather feedback directly from customers
When Should You Gather Feedback?
Onboarding
- The first moments of a user signing up for a product and experiencing it are critical junctures in delivering value and positioning the product for long-term retention.
- Offboarding
- What process do your users go through before they churn? Do you have an offboarding process, to get additional insights on why they decided to cancel their subscription?
Discover Causes of Churn
If you connect with customers at the point of cancellation, using a short survey and open-ended questions, you can hone in on why they churned
- You’ll begin uncovering insights for the following key questions: What are the main reasons for churn?
- Do churn reasons correlate with any customer persona? If so, how and what can be improved to reduce churn
Address Future Churn
If SaaS leaders choose to ignore this and don’t listen to the voice of the customer they serve, they’re likely ignoring the problems that their customers are experiencing
- Run a variety of data analyses to identify where you are losing customers, but that will not tell you why they are leaving.
- You can only get that by checking in with customers regularly
Upsell And Cross Sell Campaigns
Drive revenue based on feedback with upsell campaigns
- Timing and targeting are crucial variables for effectively pitching an upsell
- Upsell opportunities can be identified by monitoring customers who are active users, candidates to upgrade to an annual membership and have engaged in feedback surveys or have recently become promoters
