If you’re dealing with a high SaaS churn rate, a lack of customer engagement could be the reason.
Customer retention – or conversely customer churn – is a common struggle for expansion-stage SaaS companies, and while some of it may come as “growing pains,” there may be other causes… customer engagement may be the biggest reason.
I sat down with the fine folks over at OpenView Partners for this podcast, where we discuss reasons you might be falling into high churn rates and I offered a bunch of tips and tactics for retaining high-quality (high-yield) customers.
Key Takeaways to Reduce SaaS Churn
Head over to the awesome OpenView Partners Sales Lab blog to listen to the Podcast or read the transcript… when you do, these are the key points you’ll take away from it (but I encourage you to still listen!):
- What is SaaS churn? It’s the amount of customers and in turn, revenue, you lose within a timeframe. [0:50]
- Customer quality over quantity: It’s natural for an expansion company to have a high churn rate at first. Focus on what you can control: Retaining high-quality customers. [2:10]
- Engagement is key. Often times, a high churn rate is the result of poor customer engagement. [6:30]
- Develop a customer success map. Successful engagement varies from company to company. Sit down and pinpoint what success means to a customer. [15:00]
- The seeds of churn are often planted early. Mismanaging expectations during the sales process leads to a high churn rate later on. [9:15]
- Keep the conversation going. Even an unsatisfied customer can offer valuable insight into your product and service. [11:20]
Seriously, head over to the awesome OpenView Partners Sales Lab blog to listen to the Podcast or read the transcript.