Customer Retention Cheat Sheet for SaaS Businesses

There is no lie that customer retention management is a compendium of science, art, and strategies –precisely a cheat sheet.

SaaS and eCommerce businesses are climbing up to heights with lightspeed. Every business seems to be in the rat race of acquiring more customers and generating revenue. The most critical aspect of acquiring customers is retaining them.

The purpose of the cheat sheet here is to equip you with the resource that informs you of the new trends, tactics, and strategies that customers have adopted newly.

Bridging the Gap of Brick-and-Mortar Business & Online Retailers

Until late 2021, the gap was evident between physical retailers and online retailers. Now, the gap is narrowing, and some of the customer and sales factor seems to be consistent that drives the growth and success of a business.

Customer retention management is one of those factors and it works regardless for both physical and online retailers because at the end of the day customer loyalty is what matters.

To the surprise of most population, some retention tactics have been changed from customer retention management and we are going to discuss this in detail.

Let’s first talk about Pricing and Product-related Issues in the cheat sheet for SaaS businesses.

Pricing

Did you know – 29.8% of customers are likely to churn for pricing issues. Pricing issues entail that in the strong competition market, businesses offer the cheapest price options to acquire more customers.

Seeing this, most businesses also lessen their charges so that customers don’t back bounce simply from seeing their pricing page. It is significant to understand that, undercharging and overcharging your customers will most definitely take your business downhill.

Optimized pricing strategy with the enlisted features that they are entitled to make customers feel valuable along with understanding the value of the product they need for their business.

In SaaS businesses, entitlements are a viable option for an optimized pricing strategy. Under entitlements, customers are entitled to the features when they buy the product. It further includes redemption points, discounts, exclusive offers, and benefits (as per included in the product).

Hence, lowering the cancellation rate and customer dissatisfaction is vital for customer retention management in eCommerce and SaaS businesses. Later through upselling and cross-selling, the revenue generation and revenue potential can be optimized and increased simultaneously.

Subscription Pauses or Offering Incentives? Latter one!

It is a general conception that if customers can be attracted and acquired with strategies of discounts, vouchers, and exclusive offers, they can be retained.

Here is to burst the bubble because the case is quite opposite. If it shook you a bit, it’s alright because we are going to reveal a solution to your included in the cheat sheet for subscription-based businesses.

eCommerce and subscription business strategies have taken a turn. Before we reveal the solution, we have a scenario for you to picture in your mind.

Imagine you are canceling a subscription for the reasons known to you and the product offers you a 10% discount, or coupon code – how much is the probability that you are going to use the discount while canceling a subscription? Chances are it’s of no use – nonetheless, you are going to leave and churn.

A better solution derived and implemented for a customer who is about to churn is offering ‘Subscription Pauses’. Now it all makes sense, right?

Offering your customers to pause their subscription(s) is one of the most effective customer retention strategies. Here is what you can offer if customers are about to churn and have landed on the final exit page of cancellation:

Enable customers to pause the subscriptions while they are away or not using the subscription. Let your customers take a break while they are away from using the products or services. Pausing subscriptions create a win-win situation for both the customers as they can resume their subscription without canceling it and vendors can retain their customer without losing them.

Enhance Customer Experience (CX) and User Experience (UX)

Customer experience and user experience are two different things yet interrelated because when user experience is built it starts to give roots to customer experience.

User experience is based on when a user interacts with an app, website, product, or service. Whereas customer experience is developed on the basis of overall interactions with a business in a much more holistic way.

The main purpose of any product or service is to give value to the customers so that visiting customers can be turned into recurring and long-term customers.

For retaining customers, the business needs to deliver a smooth onboarding process to the customers for smooth nurturing of user experience and customer experience till the last.

The customer retention management strategy that straight up links to customer experience and user experience are providing a customer self-service portal to the customers so that they have the freedom to manage and access their subscriptions along with the information.
Furthermore, for easy navigation of the product or service, equip your customers with widgets, manuals, and other elements such as guides so that they can deal with the roadblocks in the shortest time possible.
In this part, the role of customer success and the customer support team is irrefutably important. Both teams should work in collaboration to deliver customers with seamless user experience (UX) and customer experience (CX).

How does SubscriptionFlow Manage Customer Retention for B2B SaaS Business?

SubscriptionFlow is a subscription and revenue management platform that focuses on the small to mid-range businesses working on a subscription model.

Not only this, but we also offer a customer success platform that further renders services of customer retention management and churn reduction. Using strategies and customer retention tactics, the customer retention rate of the businesses is significantly improved.

Our in-app RetentionFlow is specifically built for seamless customer retention management in which you can get real-time analytics, monitor churn scores, set churn factors, and download reports for your business. There are event types that you can select to set a preclude for churn scores and every time that event occurs by a customer, it will calculate the churn score on the basis of that.

Schedule a demo with us now to have a walkthrough of every feature and solution essential for customer retention management of your business.