If you run a SaaS business, you know pretty well how much customers mean to your organization. Attracting customers are one thing, but retaining them throughout a certain period of time, preferably for the long term is another ballgame. Customer retention is extremely important for you and your SaaS business. You cannot deny it, because customer retention is the only factor that can make or break your entire business.
Simple enough, if you cannot hold on to your customers, you set to lose money. Not only do you lose money but you also set to lose the goodwill of your customers. Word spreads like wildfire. If your customers do not want to stick to your product, soon there will be more customers who will discontinue using your product and you will lose more customers.
For any SaaS business, churn presents an extreme amount of financial drain both for your growth as well as your profit. Churn is a 100% statistical model that is used to represent the probability of a customer ceasing to use your product at any given point of time.
Now, the calculation for churn resides on a number of factors that vary from and are not limited to, how much a customer values your SaaS product, how much a customer relies on it and how much value is assigned to your competitor’s product. Apart from that you can analyze customer profiles to get deeper information and find out the root cause behind disgruntled customers. In the following infographic, you will be able to see ways through which you can improve your customer retention.
At Esanosys we work with SaaS companies of all sizes and help them reduce churn, CAC and increase LTV. Partner with us today for your SaaS marketing needs. Get in touch with us here.
