Sorting out customer problems is always pretty tricky. But in SaaS, where customers have thousands of options and sometimes aren’t even completely sure what they’re looking for in the first place, solving common customer problems can be downright mysterious.
Here are some of the most commonly confounding SaaS customer issues, along with some pretty sweet ways to solve them.
Trick: Delinquent customers causing churn mischief
Most of us know what it’s like to get a gentle nudge from our cell phone provider, dog walker, or even credit card company reminding us that their services aren’t free. And as SaaS companies, we’ve all got some customers who are a bit behind on their payments–whether it’s because the credit card linked to their account is expired, has exceeded its limit, or a whole host of other problems.
If you stop paying your personal credit card, cell phone, or even dog walker, chances are they’re going to haunt you until you get back on track. However, a recent study by Chargebee found that 20-40% of SaaS churn is caused by delinquent accounts, yet only 5% of those customers come back.
Treat: Delinquent accounts make for new marketing opportunities
If a quarter of your churned customers are coming from delinquent accounts, creating a marketing initiative to win those customers back is an important way to turn a tricky situation into a win for your company and your customer. Make sure you’re tracking expiration dates and sending customers payment notifications before they miss a payment, but don’t give up once they’ve turned delinquent. Target these accounts with messaging designed to win them back. Don’t harass them like a debtor; reach out like a human and find a mutually beneficial solution.
Trick: Easy-to-try means buyers are fickle
Any customer looking for SaaS solutions probably has about 6,000 options to choose from. And with all those choices, it’s easy to become overwhelmed, trying out one solution after another without committing to any long-term. But there are absolutely steps you can take to avoid becoming the victim of a fly-by-night customer.
Treat: Prove your product
When it comes to fickle customers, your product needs to do the heavy lifting. To prove your value, your product needs to be absolutely indispensable. Flighty customers are looking for products that solve problems immediately with provable, concrete ways to quickly show wins. If a product is easy to try but doesn’t quickly prove its value, customers besieged with choice are probably just going to hop over to the next big thing. Just remember you want to be the easiest to try and buy for your ideal customers. And then you want to instantly be able to demonstrate value in helping your customers achieve their desired outcomes.
Trick: Your customer ghosted
Getting ghosted by a customer (especially a “good fit” customer) can be just as baffling in the SaaS world as it is the real world. If you find that a customer you thought was a great fit has suddenly bailed, the most important first step to winning them back is figuring out why. Was this a surprise or was it a known issue?
Treat: Bring them back from the brink
But instead of diving right in to a post-mortem, make sure you’re not giving up too soon. List the the attempts you’ve already made to save the relationship in order to uncover new, untried solutions. Now’s your chance to really listen to the customer’s concerns and solve for them. For example, if the reason for cancelling is “The product didn’t do what I wanted it do,” you’ve got a chance to ask more questions. Talk to stakeholders and hear them out. You might find there’s a simple explanation. Perhaps the customer wasn’t fully onboarded and the customer isn’t totally confident using the product.
Don’t let SaaS customer problems scare you!
Just like the ending to an old episode of Scooby-Doo, sometimes the problems that we think are super scary have a perfectly logical solution. The key to solving our scariest SaaS problems is very often asking the right questions, and truly listening to the answers.