What’s in this article?
Do you know how often your subscribers cancel subscriptions to your services? They may have done it multiple times. That’s why your company suffer. Till now, I have seen every company want to reduce its churn rate. But companies don’t know how to do it, so I am writing this article.
Retention and activation are crucial drivers for a SaaS brand to make a profit. You have spent crores to create products and build the market.
It’s so cool to write down those marvellous words, but applying them takes a lot of work. I will try my best to make it practicable and lucid.
Understanding your audience
Do you know why 7% of customers discontinue their subscriptions each month? The answer is no! That’s why you are yet to take the most crucial step. Businesses lose their customer because they need to understand their customer. You have to understand your customer more than anything. It would be best to know what they want, how they want. Then it would help if you gave them their desired solution.
If you receive any negative feedback, you should work on this and take the necessary steps. You can reach out to them personally and then approach them differently. Show them you are really worried about their poor experience.
Before proceeding further let me tell you about the Churn rate
Churn Rate (%) = (Number of Customers Churned / Total Number of Customers at the Beginning of the Period) x 100
Let’s break it down with an example:
Suppose you have a SaaS company with 500 customers at the beginning of the month; during that month, 25 customers discontinued their subscriptions.
Churn Rate = (25 / 500) x 100 = 5%
In this example, the churn rate for that month is 5%.
Simplify Onboarding and User Experience
If I ask you to perform 5 steps before buying/using any product, would you do or opt for something else? If you ask me, I will opt for something that will save me time and make it easy. Now put your shelf in the shoes of your customers. So, you should make the process streamlined for the customer. The onboarding process shapes users’ initial experiences with your SaaS product. Ensure that your onboarding is seamless, intuitive, and easy to follow. You can provide them free walkthrough guide tool to help them understand. It will give your customer quick adaptability and long-lasting effect.
As I have said, if your user should adapt to your services, It is heavily influenced by product usability. I always suggest seeking user feedback and iterating on your product to improve its user interface and overall experience. A user-friendly and intuitive interface brings higher engagement. It encourages users to explore more features. If you provide multiple services, then you can upsell too. It will lead to increase the customer loyalty.
Training and Support
Assume I am selling you a service, and you are sceptical, but then I start telling you the product’s pros; come to a 1-1 call to help you understand more and how it can change your game. Won’t you buy it? You will!
I am telling you the same, don’t sell; educate them by offering free webinars and video tutorials so they will understand how your product will help them. It will reduce the churn rate by 50%
Everything happens around data. It’s the world of data. Data will help you to understand your customer and identify potential churn indicators. You must use analytics tools to monitor user engagement, feature adoption, and usage patterns. Identify red flags, such as declining activity or prolonged periods of inactivity, and proactively reach out to users to understand their needs and challenges.
Remeber that High-touch SaaS companies, which typically have more personalized customer interactions, tend to have lower churn rates than low-touch companies that rely more on self-service support.
Personalization is the key. The more you help people to solve their problems in a customized way, the more you will be benefitted. It will build a relationship. Just analyze the customer’s data and how they operate what they need, then give them their desired solutions. They will feel valued and increase their loyalty.
The quicker you adapt to modern technology and upgrade yourself, the more you will benefit. In the competitive world, you need to understand the new landscape and quickly change your product. In the fast-paced world of SaaS, the only constant is innovation. If you Continuously innovate and evolve, your product demonstrates a commitment to meeting customer needs and keeping users engaged and excited.
Build a Community
Do you know that your network is your net worth?
Exactly when I am telling you this, I mean it. You will get the most out of your business if you have an excellent network. You can create spaces for users to share experiences, best practices, and success stories. You can celebrate and engage yourself with your network.
Happy and engaged customers are likelier to become brand advocates, driving new user adoption through word-of-mouth referrals.
As I always say, customer feedback is of the utmost importance. It’s the most valuable resource any business can have. So, what do you need to do? Actively respond to feedback, address concerns, and implement practical suggestions.
If you show your customer that you care about them and value their feedback, then there is no need to worry.
Flexible Pricing and Plans
The more flexible you will be, the more your customers will understand your product and value it too. You can be more flexible with your product and pricing. If you offer a high-paid plan, keep a small plan for understanding your services so people can opt for the high plan once they know your product. You have different customers, so you can offer flexible pricing plans that cater to different customer segments and their unique needs.
Awesome, I hope this article helped you to understand the whole game. Improving user adoption and reducing churn in B2B SaaS requires a holistic and customer-centric approach. Remember, user adoption and churn management are ongoing processes that demand dedication and a commitment to delivering value at every touchpoint. By implementing these strategies, your B2B SaaS company can thrive in a competitive landscape and drive sustainable growth for the future.
What steps are you taking today?