Software as a service (SaaS) has grown in leaps and bounds in the past few years. Thanks to innovative techniques and the intervention of automated products, growing your business should be a breeze.
According to Exploding Topics, AI is fast disrupting the industry with SaaS companies adding generative AI features to their platforms. Businesses are so invested in the technology, that Exploding Topics says searches for “generative AI” shot up to 8,800% over the past two years.
Implementing the cloud software into your business platform shouldn’t be a matter of why. It should be a matter of how and when. Below, we’ll discuss five proven methods to keep your SaaS clients happy and loyal.
#1. Implement a Loyalty Program
Loyalty programs are an excellent vehicle for driving long-term customer engagement. When considering this route, you have to think long and hard about what you want to achieve.
Is it about subscription management or revenue streams? What about customer conversion rate?
The most common loyalty programs normally involve exclusive promotions to loyal customers. McKinsey & Company says this method is an effective strategy. It encourages new clients to sign up for the loyalty program.
Loyalty programs can impact customer retention as they serve as incentives, advises PayPro Global.
A good example is sorting clients into tiers based on the types of plans they’ve bought from you. Top-tier customers would then get early access to new products or upgrades.
For more established and long-term users, why not entice them with discounts towards their next subscription or purchase?
Both these options provide further incentives for users to be more active in the way they engage with your products and services.
#2. Listen to Feedback
Nothing frustrates customers more than when they are met with radio silence in response to their feedback. A slow-responding payment gateway can harm your ecommerce solutions offerings and digital products.
Listening to your customer’s needs is valuable for customer retention. Start with making it easy to navigate your business website and find the feedback form. The interface should include room for complaints, queries, returns and refunds. Give customers payment options for a seamless experience if selling products online.
Companies tend to rely heavily on AI chatbots, warn experts. Sometimes, the best customer service is talking to a human representative directly. Customers want to be heard and treated with empathy.
User feedback also provides important data to help you improve parts of the business your customers aren’t happy with. The proactive approach shows them you’re taking their feedback onboard and increasing brand loyalty.
#3. Leverage the Power of Positive Reviews
Customer reviews are the backbone of every good business. Positive reviews are more important for SaaS companies because they help boost rankings and increase conversions.
Trust plays a crucial part in the decision-making process for clients. A personal recommendation or an online review lets potential clients know you are a trusted brand with loyal customers.
#4. Don’t Neglect Existing Customers
Companies can neglect their anchor customers in the rush to acquire new clients.
Itay Sagie is the owner of the strategic advisory firm Sagie Capital Advisors. He says if you’ve mastered the art of monetizing and retaining existing clients, why chase down new ones?
Sagie suggests that SaaS companies research net revenue retention and gross revenue retention calculations. This will give you a clear understanding of how money is retained versus how many customers are retained.
#5. Check Churn Rates
According to SaaS Growth Hacker, the average monthly churn rate for SaaS companies is 3-8%. The percentage isn’t a good reflection of the sector.
Recurly Research says slight fluctuations can happen. However, a good churn rate should be close to 6.5%. Here’s where your existing customers take precedence. Like Sagie, Inc. believes companies should be concentrating on guaranteed revenue they receive from existing clients.
Saas businesses shouldn’t be afraid of adjusting key performance indicators halfway through the year, advises Inc. Yes, it moves the goalposts, but improving churn rates and increasing retention rates should take priority.
Now’s also a good time to focus on your company’s product roadmap and ensure it aligns with your retention goals. Inc. mentions an example of this. A company halted its new feature release to concentrate on refining and improving existing product features.
It can be overwhelming and daunting to change strategy. The end game is retaining and keeping clients. Listen to customer feedback, implement loyalty programs and never neglect existing clients.
Keep these five strategies in mind and you’ll soon see a growth in business revenue.
