Acquiring and retaining customers is always difficult and costly for any kind of business. It is almost 5-25 times more expensive to acquire a new customer than it is to retain an existing customer. Additionally, a mere 5% increase in customer retention can increase company revenue by 25%-95%. So, retaining customers becomes a big concern for Saas companies as they want to improve their ROI at all times.
In a competitive industry like SaaS, this task becomes even more challenging. It doesn’t offer a physical product that you can look at, touch, and sell using traditional marketing strategies. At an enterprise level, it is estimated that it can take anywhere from 6 to 18 months to go from the initial touch-point to a closed deal with these services, according to Semgeeks Digital Marketing Agency. Additionally, you have to constantly compete against and differentiate your product from established traditional software licensing vendors. That is why even after conversion, subscriber retention is extremely important in this industry.
Here are 5 digital marketing techniques that can help you maintain a higher subscriber retention rate:
Measure And Monitor Customer Engagement
SaaS solutions are an ongoing service by nature. So, you should ensure that your sales and support processes are always aligned to the customer’s goals and add a constant value to them. If there are any changes in their goals, you need to modify/update your software to meet their growing needs. For this purpose, you can use behavioral analytics to determine usage rates and gain insights into customer information. It will help you make your customer engagement strategy more effective.
You can’t afford to simply stay on your customers’ radar in this competitive industry. That does not mean you have to pitch all the time to your customers. However, you need to prioritize customer service and sell the excellent relationship that you offer and the value your SaaS provides. In all your customer communication and interactions, they should not feel that you are not in tune with their needs, or else they might get vulnerable to sales overtures from your competitors.
Focus On Customer Feedback
Listening to your customers plays a much more important role in customer retention than talking to them. In your communication, you can use several effective tools to measure customer satisfaction. It will help you identify the problems your subscribers are encountering at the earliest stage and will allow you to immediately fix them.
Employ Case Studies During The Sales Process
With case studies, you can better demonstrate your product’s ability to solve prospective customers’ most protracted problems. If your customers understand how you communicate with them, prioritize customer service, and proactively troubleshoot problems, they will always know you are a good fit for them.
Reward Your Customers
One more effective way to increase customer retention is to incentivize the use of your SaaS. You can reward your active and long-term users to keep them engaged. You can offer them a free month, let them test new features, or create VIP tiers with discounts and other features. Rewarding your customers this way will increase their satisfaction level and reduce the risk of unsubscribing. Check out our Semgeeks Digital Marketing Funnel for technology and SaaS for more information.
While the number of competitors for SaaS companies starting around 2012 was less than three on average, this number increased to almost 10 by the end of 2017, according to Price Intelligently. Additionally, the number of products offering SaaS marketing solutions has increased from 500 in 2007 to 8,500 in 2017. In this stiff competitive market, retaining your customers is one of the best ways to increase your business’s profitability. Contact Semgeeks Digital Marketing Agency to help your business grow!
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