- Who churns?
- Why should I know about it?
- Why is it important?
- What is Churn actually?
Curious to know ? Click previous blog for your answers.
Churn is the percentage of customers that stop using your business during a given time frame. Avoiding churn completely is inevitable but reduction could bring in the change needed. Analysing and working on improving/removing those reasons could bring down the churn rate.
Why Do Customers Churn?
Customers are the lifeline for the SaaS subscription business.
Customer churn is an ongoing concern for subscriber-based services companies.
SaaS, or software as a service, is a subscription-based platform where customers pay subscription fees for services such as Dropbox, Adobe, or Netflix.
The Top reasons for customers' churn:
- Bad customer service
- Fewer/more features in your SaaS product
- Pricing
1. Bad customer service:
The key to good customer service is building good relationships with your customers, thanking them and promoting positive, warm and easy to access ambience with them.
Creating a feeling of making each customer and his feedback matter the most is what either lifts your business up or turns it down.
2. Fewer/more features in your SaaS product:Too many complex features in the SaaS product can confuse customers resulting in annoyance.
At the same time if your product does not satisfy the customer's needs and if your competitors offer a product that clears most of their needs, your customers will get drawn towards them.
Easy access to payments and importing/exporting data from Google Cloud platforms could turn fruitful for your customers.
3. Pricing:Hesitance about pricing is part of the game.
A more price-conscious customer would have it as a higher priority on his list of priorities than having product that fits his needs.
And if he does not see the value of his fund in the product in the initial few months, he would most likely be resting his case and unsubscribe from the product.
SaaS companies using cloud infrastructure due to its cost- efficiency could attract customers.
How to prevent customer churn:
Customers leaving your SaaS subscription can be disheartening. Be it, due to
- Poor customer service
- Product problems
- Technical glitches in payment mode
- Language barriers, etc.
Hence, key to prevent customer churn rate is analysis on their wants and needs dedicatedly.
Here are the few tips to do so:
- Make sure your customer understands the product
- Continually add value
- Every single customer matter
1. Make sure your customer understands the product- Subscription business should be creating tutorials as
- Video documentation
- Crisp and clear product documentation
- Immediately responsive customer support
will be the catalyst in understanding the product; hence makes your customer make maximum use of the product.
They also might think it is worth their money; thus, continuing the subscription
MYFUNDBOX is one such subscription billing platform that aims at being the simplest and most easily grasping tool you could rely on.
2. Continually add value : There is always room for improvement- keep upgrading your product according to the trends and needs of your customer. But don't take away what already works as they might have subscribed to you for that, just make it better.MYFUNDBOX is continuously making improvements on regular basis by getting feedback from customers and bringing into the possible implications.
3. Every single customer matter: No renewal or cancellation should be taken lightly. Consistently having contact with the customer; asking if his needs are met or suggestions for improvisation; will make them feel at home and considered. Thus reducing him churning out of your business.Because acquiring new clients costs more than retaining the existing ones.
While retaining the existing clients another essential feature needs to be taken care of by the SaaS companies.
Hint: It deals with payment issue- Guessed already;
Wait for our next post to check if you hit the bull right in it's eye.
MYFUNDBOX stands out tall among its peers due to our easy-to-use interface and instantly responsive customer service. It has flourished in subscription business by making payments seem like a piece of cake. It's integration with varied payment partners adds to its value. While these attributes are helpful to reduce churn; thereby, our customers swear by it.
Do make sure to check out how one of our customer asserts the same!
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