The cost of acquiring a new customer can start off to be 5 times more expensive than the cost of retaining a customer. At worst, it can be 25 times more costly. If your SaaS company can retain more customers, that's a lot more profit in your pocket.
This is why it’s crucial to not only measure customer satisfaction, but work to improve it so that your business can retain more customers.
Repeat customers have shown that they are likely to spend around 67% more than a new customer would, further proving that an investment in keeping customers happy will help your business grow at a faster rate.
So how does a company increase customer satisfaction? It's about going beyond meeting basic requirements and exceeding customer expectations.
Onboarding Is Key
A person's first impression as a paying customer can often be their last impression. This is why it's important to make sure your customers are the right track with achieving what they intended with your software. Make sure they have the proper installation and set-up guides available to them as well as easy access to help as needed.
Guide them in setting up a game plan for achieving their end goal. Your company can do this via a variety of methods, such as a one-on-one consultation, a video series catered to different types of customers, or a series of blogs. Utilize whichever method feels most comfortable for your team.
Also be sure to check in on them for each milestone as they make their way towards their final goal and encourage them. Incorporating messages of encouragement into your software is best because it amplifies the happiness customers feel as they accomplish their goals and they will come to associate that feeling with your software.
Deliver A Personalized Experience
While many people don’t specifically ask for it, they often have a tough time leaving a company that caters to their individual needs and concerns the most.Your company can do this by taking the time to study who your customers, what motivates them through, and the challenges they face through such tools like buyer personas.
The great thing about SaaS is that it is built to deliver variety to your customers. Take advantage of that. Offer bundles, packages, configurations and features that allow your customers to get as close to a custom fit as they possibly can. People are willing to pay more for that experience.
Artificial Intelligence is also being integrated into businesses more and more. AI-powered analytics allows businesses to analyze trends to make predictions, troubleshoot, run simulations, and determine the optimal solutions that help them minimize cost and maximize revenue.
Your team should also keep an eye on rising technology trends and think about how they can be used to improve personalization.
Don’t Focus on a Quick Fix, But Look for the Root
Many SaaS companies often focus on getting through as many support tickets as they can, when if they stepped back determined the root of the issue, they would be able to knock out many problems at once.The root of the issue is the overarching problem or opportunity that is leading many customers to seek help from your team.
Think of the software program that lacks the proper teamwork tools, which can lead to inefficiency, difficulty collaborating, and losses in revenue. If this problem were fixed, it would drastically reduce all the support tickets, emails, and phone calls related to it, freeing up you company’s time for other concerns and customers with less problems and more help opportunities are happier customers.
Consider a Strategic Alliance
Partnerships are a great way to for your company to make up for any weaknesses by joining forces with another that holds them as a strength. Partnerships work best when they are mutually beneficial, so for any potential partner, their strengths should be your weaknesses, their weaknesses should be your strengths.
For example, this potential partner could have access to the best resources and suppliers to build high quality products, while your R&D team is more inventive and able to come up innovative products and processes that resonate well with consumers in your industry.
Maybe this company has an efficient software development chain, but they struggle to keep customers loyal because of their unfriendly atmosphere, while friendless and helpfulness comes naturally to your company.
Partnerships don’t have to be limited to products. They can be used in any way to be mutually improve both of your businesses.
Catch Frustrations Early
There are often signs that customers are frustrated with their experience. Inactivity is one sign, form abandonment another, while angry emails and customer support calls are the most obvious.
Catching these signs early before they build is crucial, because the root of the issue is likely that a customer is being hindered from accomplishing their final goal in some way.
If these frustrations are allowed to compound on top of each other, customers will eventually unsubscribe and take their business elsewhere. Utilizing CRM software will keep your team on top of catching customers who cross these triggers before they leave and give your company a chance to change their experience for the better.
Make Sure You Leave a Good Final Impression
When customers leave with a good experience, they often share that experience with the people around them, making them some of your best (or worst) promoters. Just like leaving a good impression is a great step to retaining a customer, leaving a good final impression helps retain them and keep the talk about your company favorable.
One way to check in on way your customers stand is to shoot them a quick email asking them them about their experience. If they have any questions or concerns or issues, follow up and find out why. If your company can make their experience better, do so, and if not, offer them a complimentary gift.
Even small gestures like this can change a customer’s entire perspective about your company from a complete dismissal to worthy of a second chance.