How Customer Experience Impacts SaaS Renewal

How Customer Experience Impacts SaaS Renewal

In the subscription business market, as a SaaS retailer, you would know the importance of customer retention. Without customer retention, you cannot expect to scale and grow, no matter how high your customer acquisition rate is. However, SaaS renewals are the basis of customer retention. How? When customers renew their subscriptions, it indicates:

  • Customer satisfaction with the SaaS product
  • Willingness to continue using SaaS products or services
  • Opportunity to cross-sell and upsell

To cut a long story short, customer experience and satisfaction ensure the SaaS renewals subscriptions.

Also Read: Retention Management with SubscriptionFlow – A Platform Where You Get Modified Features for Your SaaS

From Customer Engagement to Customer Loyalty

If you want to maintain the subscription renewal rate, then you need to opt for the SaaS renewals best practices. One of these practices is customer engagement. Also, in the competitive subscription business market, it is challenging enough to keep the entire customer base equally engaged throughout the customer journey.

No worries! Because we have the solution to that problem.


Offer your customer a personalized experience. Delve into the customer data to extract customer preferences, behaviour, and purchase pattern. Once you know all this, curate SaaS subscription plans accordingly. Take these plans to the right community of customers at the right time. If you master the art of personalization, you will never see the face of failure to keep customers engaged.

Interactive Onboarding

Whenever deals are locked in the SaaS market, the next stage is customer onboarding. Now, train your sales expert to onboard customers while keeping in mind that you want this customer to be willing to renew subscriptions. To do that, the onboarding process should be interactive. It is more like educating the customer while you onboard him.

Community Activities

You can make communities of your customers, and plan customer engagement activities in these communities. For instance, conduct webinars and create online forums for discussion. It will not only keep SaaS recurring customers engaged but also lessen the burden of customer care and support teams.

Feedback Loops

Today, no one can ignore the importance of feedback and customer reviews. Many SaaS businesses think that they need to collect feedback only at the time when customers leave. If you have the same thoughts, then forget them instantly. You need to get customer feedback all along. Run a loop of collecting customer reviews, finding action points from reviews, and implementing them.

Product-led Growth & SaaS Renewals

Product-led growth (PLG) is another pillar of the SaaS renewal rate. When you focus on PLG, the improvements are made in the SaaS product in a way that the customers would want to continue their purchase with you. PLG model totally focuses on the customer experience. Though the product is optimized, however, the focus remains the customer experience and satisfaction. To work on your PLG model, you will have to:

  • Work on the product design. Make your SaaS product easy to use and intuitive. Some SaaS products are too complex that the users fail to unleash their power to benefit the business.
  • Offer customers a self-service portal from where they can control their subscription plans their way. Self-service portals are meant to empower customers.

Working on PLG involves understanding your users, focusing on product design, providing self-service resources, leveraging product analytics, driving virality, and focusing on customer success. By prioritizing these strategies and tactics, SaaS providers can create a great product experience that drives user adoption, customer satisfaction, and growth.

Also Read: How to Maximize Your Product-Led Growth (PLG)

SaaS renewal playbook

Complications of SaaS Renewal Rate

By now, SaaS renewal would probably be looking simple, however, it is not. Consider a scenario where your marketing team put in all effort to bring potential customers. Sales experts convince these leads to turn into customers. Customer care centers keep your customers loyal. However, a single mistake or a loophole in the customer retention strategy results in a poor renewal rate. So, it is pretty risky.

Also, not all customers generate the same lifetime value (LTV). If a customer that purchases your basic SaaS product with a few add-ons would have a better LTV in comparison to one that is using only a few features of your SaaS platform. So, if a customer with a better LTV leaves, then the impact on revenue is more, no matter, whether you acquire two or three new customers having low LTV. So, calculating the SaaS renewal rate has its own complications. However, you can overcome these complications if you keenly monitor the customers who renew subscriptions and those who do not (for any reason).


The importance of customer experience cannot be overstated when it comes to the renewal of Software-as-a-Service (SaaS) subscriptions. SaaS companies must prioritize delivering an exceptional customer experience throughout the customer lifecycle to increase customer retention and renewal rates. SubscriptionFlow is the subscription management platform for SaaS.

Schedule a demo for SubscriptionFlow now to see how it can help your SaaS business increase the subscription renewal rate.