Too often salespeople glaze over important concepts during the sales process that leads to missed expectations during SaaS onboarding and product adoption. Managing buyer expectations can be the first key to increasing SaaS customer churn.
Yes, it’s the other “s” word — services. SaaS services are frowned upon by many institutional folks and usually valued far lower than subscription revenue. Even recurring services revenue finds itself way down the valuation curve. In some cases, this disdain for services may be warranted. In others, it’s misplaced. The irony is that the […]
I write and talk a lot about capital efficiency. Some may consider that a bootstrap bias, but it’s really not. A SaaS company’s capital must be used wisely to maximize growth — regardless of its source or quantity. If the revenue churn rate is too close to the capital burn rate, you’ve got a problem to […]
I know it sounds harsh, but when you have a SaaS company with high turnover, it’s much more likely to be the company’s fault than the employees’. Sorry, but millennial tales of woe notwithstanding, people stay where they love to be. SaaS employee turnover is far more costly — in hard expense and lost growth […]
Obviously, you don’t want customers to ever get to the brink of cancellation. I’ll dive into the ways to avoid that in another article. This is what you need to do when you are faced with a customer who is about to cancel, or—even worse—has already canceled. My mantra when it comes to customer cancellations […]
For a SaaS company, customer retention is everything. Externally, the entire market value of your company rests on your ability to retain your customers. And internally, churning through customers is a slow downward spiral of exhaustion, which indicates something is wrong with your product, onboarding/support resources or market fit.
While you may not be able overcome fundamental problems with your product or your go-to-market, the good news is there are actually really effective things you can do to help increase customer retention that aren’t going to come at a high cost.
While you may not be able overcome fundamental problems with your product or your go-to-market, the good news is there are actually really effective things you can do to help increase customer retention.
Why is setting the right buyer expectations so important? Because this is what leads to customers who accelerate themselves through onboarding, adopt your product and renew when it comes time. Buyers who know what to expect are far more likely to be retained than those who don’t. Prepared customers are the best customers.
SaaS customer retention is everything. Everything. If you are bootstrapping or running lean, it’s the only way to have a healthy, profitable company. And if you are raising money or want to be acquired, it’s the basis for the entire valuation of your company. While customer retention takes a village, sales is the most on the front line of selling to the right customers and side stepping the wrong ones.