If you are running a software as a service, a (SaaS)-based business, one of your biggest challenges is customer churn. In recent times, 30% of SaaS businesses have reported increasing churn rates over the past two years.
Fortunately, there are smart strategies that you can adopt to lower these churn rates and ensure that your business grows successfully.
Customer Success Management (CSM) is one of the strategies to adopt that will help you retain your high number of customers. You might have the basic ideas of what a successful CSM should look like.
However, it can get more complex when you attempt to put it into practice. Here are some proven success tips to keep your customers satisfied and grow your business:
1. Personalize your customer interactions
The key to customer success is personalization. While all your customers might be using the same software or product, you must avoid providing generic assistance and information to your customers.
When you personalize your customer interactions and treat each situation as unique, it demonstrates to your customers how you understand and empathize with their issues. By doing so, you will develop long-lasting and valuable relationships with your customers.
So, how can you tailor messages to your customers? You can personalize your outreach. For example, you can contact a customer if you think a new feature in your program will benefit their business.
Or you can even send interesting articles that might be useful to a particular customer.
2. Keep your customer interactions simple and clear
When customers reach out to your business regarding an issue or suggestion, they anticipate a quick solution. Most customers do not care about the fine details that go into solving their problems.
There is also the chance that customers may not enjoy your service because of complicated and technical instructions. That’s why you must strive to ensure that your communication with your customers is simplified and clear.
There are several effective ways of doing this. For example, you can make the tutorial section of your programs less complex so that your customers will find it easy to set up and use your software easily.
Additionally, you can include user manuals to assist customers and webinars, and other documentation.
When it comes to customer success, simplification should be one of your key pillars. You must always think ahead about how you can make your service better for customers.
3. Know your metrics
As a SaaS company, you can only generate revenue when your customers are able to use your product successfully. Successful customers are more willing to convert their free trials to a paid subscription and are more likely to refer your product to others. But, how do you measure how successful your customers are with your product?
There are many metrics that customer success managers use to determine if their strategies are working. Your churn rate is one of them, and your repeat purchase rate is another.
Your repeat purchase rate is the percentage of customers who are more likely to make repeat purchases from your business. It is a good indicator of how satisfied your customers are and determines whether they are open to doing more business with you.
Another super important metric crucial for effective CSM is your Net Retention Rate (NRR). What is NRR? This metric helps customer success managers to get an overall view of the good and bad revenue changes within a specific period in your business. A strong NRR supports revenue growth.
Other metrics such as customer satisfaction score, net promoter score, and customer lifetime value provide useful data and insights into how well your customers are doing with your products.
4. Make onboarding easy
Onboarding is a big deal for customer success, as it plays a crucial role in ensuring whether or not your customers are satisfied with your product. If you do not have a stronger onboarding program, your adoption rates will be low, directly affecting your revenue.
With onboarding, you must ensure that your customers can easily see the benefits of your products immediately. It shouldn’t be complicated or difficult to understand.
Some companies might even offer one-on-one training. However, if you cannot, you would have to get creative on how to provide adequate and quality information to help users get started on your program.
It would be best if you tried to aim at creating a personalized onboarding procedure for your customers.
5. Ask for feedback
The only way to keep improving your CSM strategy is by seeking and adopting feedback and suggestions from the end-users and your customers. Yes, metrics are helpful, but hearing directly from your customers about what they need is extremely necessary for putting you on the right path to success.
You must ensure that your business has a flexible and open system that encourages dialogue and feedback. Therefore, you must create systems designed for collecting and monitoring customer feedback. Not every suggestion might be implemented, but it can help you spot concerning issues or trends.
Feedback can also help you understand the problems your current and future customers might face. This proactive approach can be extremely useful when it comes to CSM.
Instead of waiting for customers to complain about your service, you can reach out to them beforehand and ask them if they are having any difficulties. You can also pinpoint some specific problem areas and help them arrive at an appropriate solution.
Thanks to CSM, many SaaS companies can now retain a high number of customers. A sign of a solid customer success plan or program is when your customers start getting more out of your product or service offering.
When your customers are pleased with your product, they are more loyal and willing to make referrals. Of course, you will also start to see a reduction in your churn rates. If you want your business to succeed, ensure that you are ready and committed to your customer success plan.
Focus on making improvements and other changes to help you perfect your plan. Plus, it will help improve your relationship with your customers.