Without a high customer retention rate, a SaaS company will shut down, no matter how great the other metrics are.– Nilesh Surana
With SaaS companies built on a premise of recurring subscription revenue, nothing could be more important than customer renewal. Whether you think about renewal in terms of improving retention, decreasing churn or maintaining steady growth – it all leads back to one single word: renewal.
SaaS customer renewal is the responsibility of everyone, in every department, company-wide. And it starts on day one. If you’re looking to learn more about SaaS customer renewal, these 6 articles will get you started!
SaaS/B2B innovationist and self-proclaimed “customer whisperer” Greg Daines shares the top 3 SaaS renewal fallacies. Before diving into the conventional methods of achieving renewal, we thought we’d start by addressing the risks of approaching your renewal strategy incorrectly. According to Daines, the conventional model of SaaS customer renewal is just plain wrong. Furthermore, he asserts that getting this process right is the key to effortless customer success. But what does getting it “wrong” actually look like? And how can you get it right? Daines shows you how.
In the majority of cases, you need to work deliberately to ensure the pieces are all in place and aligned. That’s why customer success is so important in SaaS.– Greg Daines
So now you know what not to do. But what are some proven methods of improving your SaaS renewal rates? Userlane‘s Jennifer Hubauer shares her top 6 tips, breaking each one down into a series of actionable bullets. Not enough? If you’re looking to dive a little deeper into renewals and customer success, Hubauer includes a free download link for Userlane’s groundbreaking eBook ‘Customer Success 101‘. Download it today!
Renewals are more than just an upcoming date that needs to be extended, a renewal is a calculated decision based on the entire customer lifecycle.– Jennifer Hubauer
Picking up where Hubauer left off, Feldman Creative‘s Barry Feldman shares his ambitious list of 15 SaaS retention and renewal best practices. Though geared toward readers seeking a deeper look at customer success, this article justifies its somewhat lengthy read time with flowery writing and brilliant advice throughout. This step-by-step guide is sure to have something for young founders and veterans alike.
Your focus on customer success should be perpetually proactive. Helping your customers utilize your SaaS solution to its fullest is key to earning subscription renewals.– Barry Feldman
Totango‘s Mia Jacobs explains that the rate at which your customers extend their relationship with you determines how fast and how far your enterprise can grow. As such, being able to accurately calculate your renewal rate gives you valuable insight into your customer success team’s performance. So how do you calculate your SaaS customer renewal rate? And how often does this number change? Jacobs breaks this process down into a few simple steps, giving you everything you need to get started today!
In the digital age, renewal is your new bottom line. That’s why it is critical to understand how to properly assess your renewal rate and leverage it to improve your customer success efforts.– Mia Jacobs
For the visual learners out there, Kilterly‘s Chris Arringdale shares his beautifully concise map of the customer journey. This cleverly designed infographic details the 4 key stops on the customer journey, explaining how they relate to each other and how to move your customers through each one. Great work, Chris!
Customer journeys may begin with onboarding, but they don’t always end in retention.– Chris Arringdale
Last but not least comes a thoughtful entry from our very own Anna Talerico. Though it’s common to design a SaaS renewal process that starts about 90 days before the date of renewal, Anna sets out to bust the myths fueling this flawed approach to SaaS renewal. A great, proactive SaaS renewal process really starts the day the customer signs up. To learn more about starting the renewal process on day one, give the full article a read!
Because recurring revenue businesses are based on getting the revenue to renew, it’s important to think about renewal as something that starts in the beginning and never ends.– Anna Talerico
Thanks so much for joining us for another SaaS roundup. We hope to see you here again next Monday!