Category: Business

6 Simple But Powerful Ways To Lower SaaS Customer Churn

Posted on by Harmit Chawla

To reduce customer churn is effectively one of the smartest development hacks in the present day.

Given that getting new clients is much more costly than holding the current ones, reducing client churn is one objective which should, and does, give restless evenings to entrepreneurs.

Procuring new clients requires a huge effort – right from the underlying contact to getting it done.

If securing costs make the a lot of your marketing budget, organizations are left with fewer resources for improving relations with existing clients and estimating consumer satisfaction – making them bound to churn.

What Is The Customer Churn?

Client churn is the rate at which your current clients quit working with you.

On account of software as a service organization, it is the rate at which they cancel their membership to your service.

Agitate averts SaaS organizations from taking care of securing costs and creating a positive capital and, tragically, is straightforwardly corresponding to the number of clients a business obtains.

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Churn pursues negative exponential dissemination which is the direct inverse of healthy exponential development.

In this manner, a short client lifetime value directly affects income while likewise preventing viral development.

The key to a steady development is verifying a strong and loyal client base that always adds to the MRR by a) effectively working with your product for quite a while and b) through referrals.

So, what are the ways to prevent your SaaS customers from churning? Here are the 6 simple but powerful ways to lower SaaS customer churn

Avoid Common UX Issues That Impact Churn

Smooth client experience is essentially associated with a decent product that meets the desires of the client.

That is the reason product management assumes such a vital job in client maintenance. Every product release should be an ideal release of the present version of the item.

Despite the fact that the product guide is limitless and the product will never be finished, clients hope to associate with a cleaned and well-functioning product.

Product managers need to acknowledge bargains at each progression yet each discharge, regardless of whether lacking potential key features, needs to work flawlessly and meet all the prerequisites that can guarantee client achievement.

An underlying bad impression is extremely difficult to recoup from, and clients don’t generally rely on your guarantees.

It’s alright to impart what’s coming beside keep clients intrigued and engaged with your product, however they’ll eventually pass judgment on you by what they see, not what they hear.

Changing Over Trial Users Into Customers

Client achievement isn’t just an office. Client achievement is the larger methodology of a whole organization, from promoting to deals, product management, and operations.

Client achievement is a procedure that starts with the absolute first interaction with a potential client.

From promotional activities to instructive content, maintenance is a solid part of a client-driven methodology that focuses on cooperating towards a similar objective.

Each touch-point leaves a lasting mark that at last influences maintenance.

Each progression in the client journey represents a unique chance to help clients to remember the estimation of your solution.

When a client dismisses the center points of interest, they quit engaging with your product. The most basic stages are:

  • On-boarding 
  • Preliminary to paid change 
  • Starting 90 days 
  • Renewal   
  • Concentrate on a Great On-boarding 

On-boarding new clients imply rapidly meeting a few targets including demonstrating the capacities of your solution, persuading clients regarding the value of your product.

And promptly directing them through the interface and through the most remarkable procedures to ensure that everything is appropriately set up to work splendidly.

A well-planned on-boarding process must intend to meet and conceivably even surpass your client’s desires by controlling them to arrive at a speedy success as quickly as possible.

The way you locally available your clients indelibly affects maintenance.

Leading clients to see first outcomes immediately and dissatisfaction implies making an incredible initial impression that will set the state of mind for the whole client journey.

Moment Usability

Another issue associated with UX is associated with ease of use. Speed is everything! We’re accustomed to collaborating with new applications that enable us to quickly accomplish our objectives.

Consider Netflix, Amazon, Spotify, Uber… clients anticipate moment access and ease of use. In any case, for these platforms, the task is generally simple, since their item is explicitly intended to achieve one single task.

The issue is far increasingly perplexing for SaaS applications that regularly present a lot more elevated levels of complexity.

Regardless of what number of modules, menus, and features your product has: clients hope to be in a split second ready to set up their workplace and rapidly accomplish critical outcomes.

Any deferral between the sign-up platform and the primary outcomes drastically expands the likelihood that a client churn.

A friction-less client experience implies that the client can promptly work the application they’re trying without feeling lost or baffled.

Commitment And Activation To Fight Churn

In the wake of on-boarding your clients in your foundation, it’s an ideal opportunity to stay in contact with them to ensure that they return back to your service as quickly as possible and proceed with their client achievement journey.

Emails, studies, and registration calls are a portion of the alternatives that can help support activation.

If clients experienced a charming on-boarding portrayed by an exciting UX, they’re bound to continue engaging with your product.

If you set up a solid client achievement program, you can choose to go for an exceptionally high-contact approach and really connect with the customer to discover what their particular objectives and necessities are and to design a guide to assist them with coordinating your solution in their ecosystem and set explicit targets.

Making a legitimate and straightforward association with the client includes organizing their experience and supporting them along the whole journey with data, information, and updates.

Building an individual relationship is the most straightforward approach to ensure achievement and advance advocacy.

Studies are valuable tools that SaaS organizations need to use to find out about their client and can likewise be utilized to discover how they like to impart.

Checking Behavior And Be Proactive

Clients who are going to churn send a wide range of sign. Client achievement solutions, for example, Natero, for instance, are designed to screen your client’s health status and send explicit alarms.

Clients don’t as a rule quite connecting with your solution all of the abrupt.

I’ve worked with the team at Andolasoft on multiple websites. They are professional, responsive, & easy to work with. I’ve had great experiences & would recommend their services to anyone.

Ruthie Miller, Sr. Mktg. Specialist

Salesforce, Houston, Texas

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If you see a drop in commitment, you can anticipate stir and mediate with re-initiation messages, limits, or extraordinary offers, for example, opening explicit highlights for nothing, or including new clients.

Stay In Contact With Your Customers During The Famous Critical Phase

Most of the clients churn in the initial three months. Organizations like Hubspot, Andolasoft used to offer an exceptional client success program to help clients during the whole course of the initial 90 days described by consecutive registrations.

Requesting feedback about your product and the general understanding during this period is a key segment of a long term relationship.

What’s more, obviously, alluring limits for yearly memberships can be welcoming and gainful for both, you, and your client.

If a client submits from the earliest starting point, they’re bound to put the time in comprehension and utilizing your solution for the fullest to get an appropriate ROI.

How to Grow Your eCommerce Company With Localization?

Posted on by Erica Sunarjo

The eCommerce market has become highly competitive. The idea of an online store has inspired many to become entrepreneurs.

However, this means that if you want to grow your company you need to stand out from the crowd. Besides uniqueness, devotion to marketing, and product quality, there is something else that can help you out – localization.

As the eCommerce market is growing, you can use the assistance of international customers to improve your company’s success.

This is your opportunity to reach a wider audience and spread awareness about your company. Not to mention that you’ll evoke trust in potential customers by providing them product descriptions in their own language.

So, if you are ready to take your eCommerce store to the next level, this is what you need to know.

What is Localization?

If this term seems somewhat familiar to you but you aren’t sure what it is really about, let’s clarify it.

First, you need to understand that localization is not the same as translation.

The translation is converting the text from one language to another.

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While localization does include translation in its process, it also demands that you use cultural context to convey the message. Meaning, that with localization you adapt the content to the culture it is intended for.

So, when you localize your website, you will translate the landing page, product description, image descriptions, and every other aspect of your website but you’ll also adapt it to the targeted culture.

The reason why localization is more valuable for sales growth is that you appeal to the new customers’ habits, traditions, and beliefs rather than just translating content word by word.

Common Sense Advisory did a study on 2,430 online consumers that spread across eight countries and the results showed that 72.4% of potential customers are more likely to buy a product if they can find the information in their native language.

Start by looking at your website’s analytics with the help of Google Analytics and find out where is your traffic coming from. This will help you define which languages and countries you should aim for.

Google AnalyticsImage Source: Google Analytics

Machine Translation or Human Translation?

While using machine translation can be faster and therefore, more tempting, you should be aware that it can never provide you with the quality that human translation can.

Localization is an especially tricky task because you need more than just transforming the content from source to target language. You also need to adapt the translation to the targeted culture. 

Instead of hiring a translator, you should think about working with a localization expert who has experience in this field. He or she can give you pointers on what you need to pay attention to on your website if you want to appeal to the target audience. 

If you feature some holiday discounts/sales on your website, keep in mind that countries celebrate different holidays. Talk with your localization expert about this aspect of localization and make sure to adapt it to the targeted country. 

Improve Customer Service

Responding to customers’ inquiries is a highly impact aspect of the eCommerce business. If you don’t deal with questions that your potential customers have about your products, you won’t be able to earn their trust.

For that reason, as a part of your localization process, you should provide customer service in multiple languages. 

There are several options depending on your plans and your budget:

  • Hire a customer service team that can address customers’ inquiries in their native language.
  • Hire a professional translator to translate FAQ to cover the most important questions.
  • Use machine translation just for the FAQ to cover the most important questions.

Adapt the Website’s Look 

Depending on target audience differences, you might need to think about adapting your website as well. 

There is more to localization than just translating the content based on the target culture. You should also think about the visuals that will be most effective.

Take Amazon as an example. While Amazon’s websites for the UK and Germany don’t differ, there is a clear difference between the European Amazon website and the Chinese Amazon website.

Adapt the Website's Look Image Source: Amazon UK

Amazon GermanyImage Source: Amazon Germany

Amazon ChinaImage Source: Amazon China

This global company is aware of differences between its target audiences so they adapted the visuals.

While the European audience has a similar taste, the Chinese audience prefers a more vivid, bright, and colorful visual effect which is evident in Amazon’s choice of design. 

Choose an Appropriate Platform

Before you start with localizing, you need to make sure that your current eCommerce platform is adequate for localization.

For example, it should offer order management integration, international shipping, multi-currency options, and be tailored for translation to different languages. 

To ensure the security is on point, check with your provider if the platform supports the rule of the global Payment Card Industry Data Security Standard (PCI).

Localized SEO

Optimizing an eCommerce website is very important for a company that aims at growth. If you don’t optimize the website, the customers won’t be able to find your products, and therefore you’ll fall short in organic traffic.

The thing with localization is that you need to adapt to the website’s SEO as well. 

Why?

Well, different countries have different preferences when it comes to online searches. For example, even though Google is the most popular search engine in the world, other search engines are used as well.

Users in China use Baidu (68.78%), users in Russia prefer Yandex (51.6%), and some Japanese users prefer Yahoo (23.09%). 

Depending on the search engine, you need to adapt the SEO efforts accordingly. 

I’ve worked with the team at Andolasoft on multiple websites. They are professional, responsive, & easy to work with. I’ve had great experiences & would recommend their services to anyone.

Ruthie Miller, Sr. Mktg. Specialist

Salesforce, Houston, Texas

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Also, pay close attention to keywords. They shouldn’t just be translated word for word. There might be some variations that will influence the keywords.

If you run a US website and you want to adapt it for the UK market, keeping the word “sweater” as a keyword will hurt your SEO because the UK audience will rather use the word “jumper” in their search. 

Even such simple changes can make a huge difference. 

Some Final Thoughts

Localization can be one of the key moves you need to expand your global reach.

Unless you explore international markets, you’ll never know how the global audience will respond to your products or services.

With localization, you can affect the purchase decisions, build trust, and personalize the shopping experience. 

The above-mentioned guidelines will give you all the information you need to execute the localization perfectly. Through the whole process, just keep in mind that user-friendliness is what you need to aim for.

Localization can provide the customers with a positive shopping experience and get them to fall in love with your eCommerce store.

Why to Choose Microsoft Dynamics AX for the Business

Posted on by James Warner

As a significant member of Microsoft’s family, Microsoft Dynamics AX offers a powerful Enterprise Resource Planning (ERP) solution suitable for all kinds of organizations from mid-scale to large enterprises.

Ideal for both on-premise and cloud-based platforms, this solution not only strengthen the manufacturing as well as distribution operations but also, serves well across various industry verticals.

The solution assists the organizations in organizing, automating, and optimizing their processes by means of effective functionalities meant for warehouse management, inventory control, transportation management, production management, demand and supply chain planning, production management, material management, product lifecycle management, quality assurance, asset management, as well as business intelligence.

In addition to this, multi-currency and multi-language are some of the additional features that make Dynamics AX an appropriate option for the organizations which operates worldwide.

Considered as one of the simples to install the applications, Microsoft Dynamics AX supports easy assembly, repetitive process, make-to-order, and make-to-stock processes, while its industry-specific specifications make it apt for the manufacturers associated with electronics, industrial machinery, metals, aerospace, medical devices, as well as consumer products.

Now, as part of the Dynamics 365 Platform, this application supports the building of a comprehensive and sophisticated Enterprise Resource Planning (ERP) and further offers quickest ROI following the installation.

Here, the list of the most common ways by means of which the Microsoft Dynamics AX solution can enhance the efficiency of various business processes.

Boost the organization’s performance with respect to finance

Dynamics AX assists you to leverage the complete advantage of newer opportunities related to the business globally with the help of embedded analytics and business intelligence for finance.

Also, it helps organizations to meet the regulations of various countries by providing country-specific localization, even including the countries with the highest growth rates within a universal solution.

Enhance the employee’s productivity at the workplace

Dynamics AX enables the employees to make proactive and smart decisions with the help of intelligent and targeted systems.

The key feature of this application, RoleTailored unify the valuable information, assignments, and insights associated with specific tasks.

By means of automating, task prioritizing, and integrating the capabilities, this application puts each and every resource at the employee’s fingertips and empower them to perform in a smarter and quicker way.

Scale up the organization’s capabilities smoothly

Dynamics AX’s quick installation ability and advanced features support the organization’s specific business requirements as it attempts to scale up its capabilities in a smooth way.

The model-driven and layered architecture of this application help in developing as well as maintaining the business processes and upgrading of the systems with the latest releases easily.

Furthermore, to meet the dynamic requirements of the organization, the application’s deployment can be simplified and accelerated with the help of the instant-on feature.

As the architecture of this application is much more flexible, the organization can execute Dynamics AX at once and/or system-by-system, which reduces the overall implementation time and its associated cost.

Increase the organization’s supply chain visibility

Dynamics AX effectively tracks down the assets of the organizations and helps to reduce the amount of error reporting.

The valuable data collection and associated predictive analytics offer productive insights related to every part of the supply chain.

Improve customer service rate in an effective manner

Dynamics AX, with the help of advanced logistics management, optimizes the flow of materials that makes it easier and faster to reach the desired products into the customer’s hands.

In addition, it assists in the improvement of product quality through real-time insights as well as customer response time with combined order processes.

Minimize the organization’s overall operational costs

Dynamics AX assists in minimizing the organization’s overall expenditure associated with operations with the support of encumbrance, 3-way matching, budget planning & controlling, and automating the financial process.

Moreover, the automation of all the processes across the supply chain helps in the reduction of costs related to procurement.

Leverage the additional products of Microsoft Family

Dynamics AX provides access to additional software of Microsoft.

The organizations can leverage the maximum advantage of this application by connecting it with various enterprise applications and communication platforms, including on-premise and cloud-based applications.

This kind of connectivity improves communication as well as collaboration across various departments of the organizations.

Offers industry-specific feasible solutions

Dynamics AX features in-built industry-specific competencies for the various processes of the organization, including manufacturing, retail, distribution, services, and much more. Below are some of the examples.

Manufacturing – Dynamics AX offers a complete solution for manufacturing by providing efficient solutions related to operations as well as customer service processes. These solutions enable the organizations –

  • To address the ever-changing customer requirements by providing a flexible and scalable platform.
  • To enhance efficiency by increasing the speed of time-to-market and customer responsiveness by streamlining the internal processes.
  • To empower the employees to do their jobs in the best way by providing them with a customized ERP solution which suits their work requirements.

Retail and Distribution – Dynamics AX offers a delightful user experience for both the organizations and their customers by ensuring the smooth running of multichannel management, financial processing, merchandising, and store management. With the help of it, the organizations can –

  • Easily reach their customers and deliver excellent customer service by promoting effective customer engagement as well as productivity programs by means of relevant insights and comprehensive order management.
  • Scale up the capabilities of business processes seamlessly and adopt an efficient omni-channel strategy.

Final Thoughts

The most-advanced Microsoft Dynamics AX offers a feasible solution to improve the organization’s financial performance by reducing the operating costs and increasing the revenue.

By leveraging the features of Microsoft Dynamics AX, the organizations can achieve a competitive edge and improve the experience associated with security, manufacturing, retail & distribution, and customer experience.

How Magento Ultimate B2B eCommerce Partner for Success?

Posted on by Meshur Ahir

A business of any kind nowadays needs to have a presence on online platforms. It can be a large scale production company or a small scale trading business; it will flourish in all directions only if it gets a popular place on digital media.

The B2B Commerce space has come up with exciting developments in both selling and buying products online.

From the seller’s end, they have arranged to keep an efficient online front, all the products and services are listed, and their bulk rates are mentioned on request by the buyers.

Likewise, from the buyer’s end, a list of genuine sellers is listed along with their products in a filtered manner selected by buyers. Both the purposes should get a satisfactory experience to continue trading without any errors.

When it comes to handling large orders and huge payouts, people tend to trust a Magento Development Company. They allow their users to have a well-defined order and payout structure.

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Their CRM and SEO related services are impeccable in the market. Magento comes with bearing hands of simplicity and healthy trust levels. Not sure in enlisting your name on the online portal? Are afraid of entering into a fraudulent scheme? Having any sorts of second thoughts?

Let me brief you with the benefits of using Magento:

  1. Everything in One Place

    From making a buyers profile to listing products of your choice, one has everything available at one place. You can buy from multiple businesses and compare their rates beforehand. You will rest assured for the quality of your products. Integrating it with ERP or CRM is very simple, and you can enjoy services like online tracking of bought goods, order history, and keep a track on your bills and credit options.

  2. Quick Responsive Outline

    Though B2B clients are buying products in bulk, they need a proper presentation for the entire product range, appropriate bucket list column, a secured payout panel, and much more. With Magento support providers, you will have access to various designs and outlines for your business portal from where buyers can order from any place and any device they want.

  3. Managing Order Pipeline

    Through Magento designing portal, buyers can have access to the entire range of products available online. They can put filters and price range constraints to find what they are looking for. They can buy them immediately or can save it for further purchase. They can create a bucket list of their own and order after deciding what’s best for them. The exit payment portal is entirely secure and straightforward to operate.

  4. Credit Facility

    Magento Support Providers have come up with a unique solution. Generally, buyers get credit from their sellers when they are in a B2B relationship over a long period. Trust has built up in their trading relationships and hence, buyers with bulk quantity pickup of several products from one seller get this added perk.

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    Now, what to do when you are buying online? Well, after establishing a good relationship in trading goods, sellers can give this ‘credit on account’ facility to their regular buyers. On buyers end, they will have a credit option, which they can check now and then to know their status.

  5. Inventory Management

    In building a business empire-wide and large, sellers introduce new products now and then to keep their feet high in the market. Magento Development Company allows you to alter your product list anytime you want. Sellers can deduct products that are not available and add new ones. Buyers can put a notification tab on their favorite sellers. By this, they will get notified every time the respective seller changes or adds anything to the product list.

  6. Buyer/Seller Profiling

    In business, one can sell everything. There can be a need for raw materials or aiding products or spare parts or anything that a seller might need to buy from someone else. This portal allows you to have the same profile for both of your needs. Under this profile, one gets the privilege to sell their products and buy their necessities from other sellers. This way you can build business relationships online and expand your empire.

Key Takeaways

Thus, with an end-to-end solution from sellers to buyers, B2B Commerce is developed. It has joined the bridges for sellers and buyers regionally as well as globally.

If you want to buy from a person sitting in London and get it delivered to someone operating in Japan, you can enjoy the commission of being a middle man and run the process on your goodwill even.

This way, without investing a penny, you might end up earning loads of money. Span your business worldwide and not limit it to a mere regional level. Magento Development Company is your one-stop solution for boosting your business in the online marketplace.

Coupling New Technologies & Endless Support To Users Thrives Andolasoft At GoodFirms

Posted on by Anna Stark

Andolasoft with its expertise in technologies and specialized team help customers to monetize their ideas into reality with high quality and timely delivery matching the client’s budget; which enables the company to lead amongst the top mobile service providers in San Jose listed at GoodFirms.

Andolasoft is one of the preeminent product development companies in the USA with the global expertise of more than 10 years. The company caters its services on the various domains from IT, Fashion, e-commerce, Healthcare to FMCG, Travel, and others. Andolasoft provides flawless, transparent, and reliable product development services supported by on-time delivery.

 Technologies:

The team of 100+ highly proficient developers holds comprehensive knowledge in product development in all the advanced technologies like Ruby on Rails, PHP/CakePHP, WordPress, Magento as well as developing mobile-based products such as in iPhone/iOS and Android. 

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GoodFirms is a B2B analysis and review program that evaluates various service providers by considering their overall performance based on three parameters – Quality, Reliability, and Ability. Similarly, the GoodFirms’ research team also evaluated Andolasoft and found it among the most reputable top U.S. based mobile app development companies in 2022.

Andolasoft is an end-to-end merchandise lifecycle management and development firm that fast-tracks market evolution. The company with its in-house expert team of developers caters to the clients with smooth, engaging, and innovative mobile apps. The experts at Andolasoft develops the user-friendly mobile apps starting from scratch, as in, concepts to visualizing to development and supporting. The professional developers ensure the clients to give appealing, engaging, and easy to access mobile apps on both Android and iOS platforms which end-results in boosting the ROI of Clients’ businesses.

The team at Andolasoft follows a particular process for developing mobile apps like – app strategy, app designing, MVP app development, API development, app rescue, app deployment, app strategy, support, and maintenance. Thus, through this standardized process for developing apps and with the expertise of developers Andolasoft has earned a primary position as one of the best mobile app development companies in San Jose enlisted at GoodFirms.

Along with the quality service-offerings in the mobile industry, Andolasoft also exhibits its robust, scalable, and interactive PHP solutions to clients around the globe. The company specializes in CakePHP development, which is a powerful belvedere system that turns developing of both small and complex operations into a simpler and manageable task. From designing to scaling and monitoring to deploying, the in-house expert team provides end-to-end PHP solutions. Company has developed flexible and engaging business models keeping in mind the needs of the clients. Therefore, because of the flexibility and punctuality of the developers in the delivery of the product to the clients, it is believed by the GoodFirms research team that Andolasoft will soon lead globally as the best PHP development companies amongst the listed ones at GoodFirms.

I’ve worked with the team at Andolasoft on multiple websites. They are professional, responsive, & easy to work with. I’ve had great experiences & would recommend their services to anyone.

Ruthie Miller, Sr. Mktg. Specialist

Salesforce, Houston, Texas

LEARN MORE

Thriving in both the categories as mentioned above, it is worth to say that Andolasoft is also known for its excellent services offered in the web development section. The expert WordPress developers exhibit services to clients like – custom designing, theme development, plug-in development, and 24*7 monitoring. The company caters its services to established businesses, entrepreneurs, digital firms, and startups. Thus, the expertise of the WordPress developers makes the GoodFirms unit believe that the company will soon lead as the best WordPress development company amongst the enlisted ones at GoodFirms.

About GoodFirms 

Washington, D.C. based GoodFirms is a maverick B2B research and reviews company that helps in finding WordPress development, mobile app development, and PHP development companies rendering best services to its customers. GoodFirms’ extensive research process ranks the companies, boosts their online reputation and helps service seekers pick the right technology partner that meets their business needs.

How To Reduce SaaS Churn?

Posted on by Jay

If you’ve just started to acquire your very first customers in your SaaS business, then reduce SaaS churn may not be a big deal for you.

If you’re like most SaaS managers, you’re committed to running and growing your business.

but to do that, you need to ensure you’re meeting the needs of your customers, and that includes reducing churn.

As you start developing your SaaS customers, the churn becomes an important part. And gradually it can stand as a big hurdle in the success of your business.

So now the question arises how to reduce churn, which helps to gain more SaaS customers.

So Where Does The Problem Rely On?

High-growth expected SaaS startups think they have figured out every aspect. The path seems clear until churn begins to smack them in the face.

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Suddenly, customers begin cancelling and leaving at a faster rate than expected. Who is responsible for such flaws? No one will take the blame and that is obvious.

Sales team starts blaming the product team for not delivering whereas product teams blame customer success for not onboarding.

Gradually marketing starts to worry about company reputation and growth. This is a common scenario.   

I’ve gone through some surveys and what I found is extremely shocking. Here’s the list;

  • Bessemer Venture Partners says an acceptable churn rate is in the 5 – 7% range ANNUALLY, depending upon whether you measure customers or revenue.
  • Roughly 70% of SaaS companies in their survey had annual churn in the < 10% range, with 75% of those at 5% or under.
  • 30% of SaaS providers surveyed have an unacceptable level of churn.

Why Do You Need To Reduce Customer Churn?

As no business want to lose their customers. For a SaaS companies, it becomes even more critical. As they depends on having ongoing revenue from the clients to gain more profit.

A retail firms get bulk of money during their point of sale. SaaS businesses do get paid but over an extended period.

(Source: Accelerate Agency)

When a customer stay with your brand for a long period, the more value is added to the business. This helps to reduce customer churn, which is a vital steps for a successful SaaS firm. It is also an important metrics to track your business. Keeping your customers on board is helpful to maintain your monthly revenue.

It is easy to retain your own customer than gaining a new one.

Why Do Customers Leave?

There could be either number of reasons whereas the customer decides to hit that “CANCEL” button, and here are a few of the most common:

  • They’ve faced a poor customer service experience. That means they might have tried to find help for something and couldn’t get what they wanted.
  • They might have had a poor onboarding experience and couldn’t achieve what they were expecting.
  • They tried your software and it wasn’t meant for them.
  • Your software might cost them a lot.

Sometimes there’s no indication that churn is coming as customer cancels without raising any issues. However, there are some signs even before that customer cancels.

Increase Your Average Customer Spend:

It’s a fact that most of the SaaS managers accept is, With the growth of your company, the churn grows.

As it creates negative cash flow, you need more customers revenue to replace the churned revenue. Without it the company’s growth will eventually decreases.

You can reduce this type of stagnation by focusing on the negative churn. Negative churn happens when there is expansion/cross sell/up sells that is based on the current customers. It exceeds the revenue that are lost because of the churn.

You can increase the average average customer spent of the existing customers base, it’s easy to recoup the lost revenue.

Common Signs Of SaaS Churn-

  • Payment issues: These includes late or missing payments, credit card hasn’t been updated, and so on.
  • Disengagement with your product: it means the customer doesn’t seem to be engaged with your product. it might include signs like fewer logins, increased bounce rates, etc.
  • More complaints: When customers face numerous difficulties or bugs to use your product, they start raising issues and complains against it. This is the biggest sign that your customer is unhappy with your product or services.

So How Can You Reduce Churn?

Let’s take a closer look;

We all know that a SaaS life can be busy as you’re often trying to juggle many different tasks for your business growth & success. But among all, incorporating strategies to reduce churn is vital. So,  

Keep your churn rate low and your real rate of growth has a chance to improve.

Here are a few strategies;

Engage With Your Customers:

Customers are the basis of the entire SaaS product. When they don’t feel like they have a connection with your company or appreciated, it makes easier for them to cancel without a second thought.

Communicate with your customers regularly and engage them from the initial stage.

For example, Andolasoft found that by segmenting their customers and regular communication, they boosted customer engagement and reduced churn.

Below, I’ve shared some reviews that Andolasoft has received a few days back from its happy customers 🙂

John Skeet, Director

Goss Closet Pty Ltd, Australia

Andolasoft has provided a first class and professional service for our web application. Andolasoft solved all problems and was innovative in their approach to the tasks. There is also a great depth of specialist resources within Andolasoft to call upon for specialized assistance. The overall service, from determining the scope of work, the project management to the invoicing and payment for services, is user-friendly and efficient. We look forward to our continued work with Andolasoft.

Caroline Van Sickle

Pretty in my Pocket, Atlanta, GA

I got a recommendation for AndolaSoft. They are more than half the cost, they have a can-do attitude, and they are responsive, timely, and easy to work with. We had an established project, to begin with and needed further feature development and iteration. Therefore, they dove into highly complex code and knocked it out of the park. It was on me to define the scope and context of the job. Just like any project, the leadership, direction, attention to detail, and QA is critical…

Make your customers ‘Sticky’…

That means a sticky customer is a buyer who is likely to follow through on an intended purchase, buy your product repeatedly, and recommend it to others.

Like many popular SaaS companies, Andolasoft knows offering best products with best services can trigger cancellations. So they maximize every opportunity to reinforce the value their customers are getting from their product. Here’s feedback that Andolasoft SaaS product has received-

SFCG manages Marketing Automation
Delivery via Orangescrum

JAMIE SMITH
Director of Marketing Automation

We Chose Orangescrum because of Orangescrum’s rapid response to our questions and concerns as we were testing out the system. We appreciate the support and truly feel like we have a partner assisting us with our project management system.

Remember- If your customers are quitting, stay top of mind to get them engaging.

Get The Right Customers:

This means having a customer that is not right for you. You may think that rejecting a customer isn’t a good thing, but believe me, it works. The reasons are simple-

  • You spend money to get a customer and definitely you don’t want to waste your money on a customer that will churn quickly.
  • To get a healthy SaaS business your LTV (Customer Lifetime Value) must be at least 3 times higher than your CAC (Customer Acquisition Cost).  

But how to know who is an ideal customer for your business?

Well, through TRIALs. Yes… It’s common to use free trials as a way to market your product, but it’s definitely a great opportunity to qualify leads.

Although the period is usually short as 30 days, you should help customers on trials to have quick wins with your product, and truly validate the benefits out of your product/service.

Do The Customer Onboarding Accurate:

Onboarding is the process of introducing new customers to your product or service in an organized and effective manner.

It begins at the time of signup/purchase and may continue for up to three months, depending on the complexity of your offering.

Once you acquire a customer, what after that? Build trust.

One key thing to do here is to send scheduled messages during the onboarding period.

This means you can focus on getting customers engaged with your product in all the right ways, without them feeling like they’re being spammed with content irrelevant to their needs.

Ask For Feedback:

People come and go. But if you know the reason, it can be avoided. If you take my earlier example, Andolasoft was able to reduce their churn by 71% simply by asking why their customers were leaving.

It seems quite simple but asking for feedback offers you an opportunity to iterate and make your product or service the best it can be. When asking for feedback, it’s important to reach out to the right customers.

– Adler, USA

Andolasoft is an invaluable partner for us a startup. The team is great to work with and the projects are delivered in a timely fashion. I know that I can rely on Andolasoft for future projects because of the depth of resources/skills that they offer.

Identify And Reduce Activity Churn:

Most SaaS app development companies focus on regular churn which is the number of users that cancel their account each month.

While reducing regular churn is important, what’s possibly more important is identifying activity churn which is the number of users that became inactive each month.

Des Traynor, Co-founder & Chief Strategy Officer, Intercom says,

“Typically customers gradually stop using products, from using it every morning to every week to once a month … At some point down the road you’ll remember you’re paying for something you don’t need and don’t use, and then you ‘churn’, even though the decision was made months ago.”

So How Do You Reduce Activity Churn?

Send re-engagement emails to inactive subscribers.

Check out this email I received from Wakeupsales the SaaS CRM tool after I didn’t log in for a few months due to some personal issues.

Final Thoughts:

Churn is something every SaaS owner goes through. Though it isn’t always avoidable, it can be managed when you apply a few of the above best practices.

As we’ve seen, reducing churn goes beyond the basics of improving your product; it’s mostly about adding value to the lives of your customers.

If you can be able to manage that, churn will level off. What are your experiences with reducing churn? Leave a comment below.

Want to know more about reducing SaaS churn? Talk to our experts!