Why is Customer Retention important In SaaS Businesses?
A loyal and retained customer will act as an ambassador of your brand and product, and provide recurring cash flow to your business. Bringing New customers is not only an effort taking but promising job as well. It is not about selling a product, it is about gaining customers. When the matured customers are happy, it’s easier to attract new ones.
Customer retention is the fulcrum of a successful SaaS business. Since most SaaS businesses work as subscription businesses, customer retention is way more important. When the math goes wrong with the customer satisfaction, the new start-ups fail to attain the stardom. Researcher suggest that a mere 5% increase in customer retention will boost the profit by 25% to 95%.
Below are few key tips to improve customer retention in SaaS businesses :
- Offer great customer service
Every customer service interaction gives you the opportunity to grow your business. Ensuring that your customers have a positive experience becomes quint essential to retain them. We at MYFUNDBOX strive to provide superior customer service and we are glad that our customers are happy.
“A fantastic subscription billing service with first class customer service”
a review by Rupert B. about our service.
- Communicate effectively
Effective communication means not just about exchanging the information, it is about understanding the needs and intention. We have to be sure to send relevant promotional materials, emails, newsletters and social media posts time to time. At MYFUNDBOX, we Keep our customers up-to-date on what’s happening with our company and the products, to make sure that they are aware of all the services we offer.
- Offering Competitive prices
Never compromise on quality. If you can keep your prices low while still providing quality services, your customers are more likely to stick around and guess what? Its MYFUNDBOX which provides you with the both.
- Offer a Free trail
How can you market a product which is non-physical? The best answer is giving a free trail of your product. Give a walk-through of your product features and allow them to explore. For SaaS businesses free trails will fetch new customers. We, at MYFUNDBOX offer free trails to our customers so that they actually try before they buy.
- Understanding Customer churn
Knowing why a customer is churning will in turn help you retain them. Use customer churn data to make analysis on churn rate and figure out the ways for their retention. This is very crucial in SaaS businesses. MYFUNDBOX ensures that the churn rate is bare minimal by adhering to its customer oriented service.
SaaS customer retention is a great way of driving more revenue from your existing customers while subtly enhancing the profitability.
By following these tips, you can increase customer retention in your SaaS business.
