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How SaaS Companies can Reactivate and Retain Inactive Customers

It's a phrase that haunts any SaaS company leader: customer churn. Research shows that more than two-thirds of SaaS companies have 5% or more churn rates in a single year, while companies...

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It's a phrase that haunts any SaaS company leader: customer churn. Research shows that more than two-thirds of SaaS companies have 5% or more churn rates in a single year, while companies experiencing low growth have churn rates as high as almost 42%.

Curbing churn isn't just about preventing customers from moving over to competitors. It's also about overcoming their inertia which changes them from an active to an inactive customer. There are several strategies to prevent this problem, but having the right team in place to do so is crucial.

Is Increasing Churn Inevitable?

As in any industry, It's impossible to retain every customer, and this is especially true in a highly competitive space like the SaaS market. What is possible, however, is to reduce the number of customers who become inactive or move over to someone else. Seeing churn as inevitable would be a mistake as it stops companies from being innovative with their strategies to curb it.

A Proactive Approach to Customer Engagement

Taking a proactive stance can help SaaS service providers retain customers. You can put several proven strategies to work for your SaaS company.

Focus on User Experience (UX)

Just because your product solves a problem or closes a gap, it doesn't mean the customer will keep coming back when there is stiff competition out there. According to PricewaterhouseCoopers, 32% of all customers would stop doing business with a brand they loved after just one bad experience.

If the UX is not pleasurable, the customer will consciously or subconsciously not want to use it, even if its functionality is acceptable. And that unpleasant experience can lead people to defect. Understanding user preferences and behaviors through user research premium training can significantly enhance the appeal and usability of your software solutions. To improve your UX, your customer support team should be attentive to customer feedback and provide regular insights to your product design team.

Ensure Good Customer-Product Fit

It might feel like a win to sell someone something they don't need, but it doesn't make business sense in the long run because it feeds churn and erodes the brand's reputation. Marketing and sales teams should focus on making sure customers are being sold products that benefit them. Outsourcing your marketing to a SaaS marketing agency can increase your business's efficiency and provide consistent ROI.

Keep a Pulse on Customer Sentiment

Constantly improving your product is a good thing, but not if you're doing it in a vacuum. Any product update should add value to the customer's life, and unlocking that value means asking for feedback. Find out what else they need. If they leave, ask why so you can improve going forward—and then make sure you follow through.

According to Forbes, bad reviews are a common sign that a business isn't growing, and it is a costly mistake not to follow up with customers "in a timely and responsible way." Your customer support team should be a top source for gathering customer feedback and ensuring it gets into the hands of people who can make smart business decisions for your company.

Leverage an Outsourced Customer Support Team

SaaS companies can outsource the legwork of customer success strategies by relying on a dedicated team of experts who understand how to increase customer activity. An outsourced team can focus on reactivating customers through strategies like support, outreach, upselling, and building relationships. Front and back-office team members at an outsourced company can focus on user engagement so that SaaS companies can focus on what they do best: design and build products.

Start Lowering Churn Today

The idea of an in-house team to reduce churn can feel like an expensive and energy-sapping overhead you don't really want. Outsourcing customer support to a dedicated and experienced team can make all the difference.
The dedicated teams at focus on ensuring users understand the SaaS solutions being provided and how they can benefit from the process. We offer fully integrated business process outsourcing that drives brand loyalty and the best digital UX possible. But, always behind this digital UX is a team of human beings who are listening to what customers need.

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