How to Get Better at Reducing SaaS User Churn Rates

Of primary concern to providers of in-the-cloud services are the customers who embrace a service and use it for a while, only to leave for what appear to be greener pastures—a new or different platform or even abandoning cloud services all together. SaaS Churn rate—the rate at which business customers adopt and then abandon Software as a Service (SaaS)—is a problem for all companies that provide cloud services as their lead product or service.

 

Company focus is often at the heart of a churn rate problem when usage stats are overlooked in favor of conversion statistics.

 

reduce saas churn rates

 

 

Conversion Versus Care

Small and medium businesses with limited resources find difficulty balancing customer service and acquiring new customers. When the focus of small or medium businesses shifts away from customer service toward converting new customers in a quest to fuel company growth, the exiting customer base may begin to look elsewhere for similar services because their needs are no longer met. Churn rates begin to rise.

 

During periods of rapid growth, the rise in departures may go unnoticed. The level of customer dissatisfaction rises because the company’s focus has shifted from serving the existing base to monitoring conversion rates. This common mistake can damage reputation until it becomes difficult to repair the damage.

 

Monitor Analytics

Veteran users with extensive knowledge and experience along with new users still in the onboarding phase are an important asset to any SaaS provider. That makes it important to provide good customer service to all existing users. Monitoring analytics doesn’t juts refer to general traffic and bounce trends on your website – in fact, when it comes to customer retaining, the most important aspect of analytics is the individual customer’s usage stats.

 

You need a comprehensive, drill-down picture of where you customers are having a hard time, which work flows on your website are smooth and where customers are stumbling. Once you’ve figured that out, it’s a matter of reaching out by way of pro-active customer service, or else making necessary changes to your UI.

 

Feedback

Feedback is necessary to understand your user’s experience. Too often when customers are frustrated, they simply give up and once they are on that path, they have already started looking elsewhere. Encourage feedback and make giving it worthwhile. Good feedback takes time and effort on the part of the customer giving it, and having an incentive such as a raffle or reward can make the difference between giving feedback or just moving on.

 

Customer Service

Usage stats and feedback are not enough. A primary concern of customers is a company’s response to user complaints and support tickets. Obviously, responding to the customer is important. At the same time, making the customer feel that their complaint or support issue is taken seriously is also important.

 

It’s not enough to simply respond to a complaint or provide an answer. When customer service addresses the reason behind the complaint or issue, that gives the customer positive feedback and they feel more confident when future issues or complaint require attention.

 

Decreasing churn rates is a matter of increasing the satisfaction of the existing user base. Pay attention to the usage stats available in the customer analytics dashboard and ensure customer service encourages and responds to feedback and addresses customer issues with timely and serious replies.

Get more customers to stay on board

Kill churn

Noa is Iridize's Head of Content. With a background in digital strategy planning and database management, Noa translates Iridize's vision, stories and data into words. Digital learning and user experience are a particular passion of hers.