Chop Customer Churn! A webinar for SaaS companies, Sept 2013
 

Chop Customer Churn! A webinar for SaaS companies, Sept 2013

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While customer acquisition is often the prime focus sales and marketing efforts for Software-as-a-Service businesses, customer retention is all too often consigned to an afterthought. ...

While customer acquisition is often the prime focus sales and marketing efforts for Software-as-a-Service businesses, customer retention is all too often consigned to an afterthought.

But churn is not a problem to be addressed only as the customer leaves.

How SaaS Businesses can convert Trial Customers into Paying Customers, will walk you through some simple yet powerful ways of reducing churn.

The discussion will include:

How you can bring the voice of the customer into the organisation using simple metrics such as the Net Promoter® Score.
How you can create internal processes to swiftly and effectively close the loop on customer issues.
How you can use feedback to incrementally improve your products around your customer needs.

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Chop Customer Churn! A webinar for SaaS companies, Sept 2013 Chop Customer Churn! A webinar for SaaS companies, Sept 2013 Presentation Transcript

  • © CustomerGauge / Directness BV Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld. Webinar: Chop Customer Churn! How SaaS Businesses can convert Trial Customers into Paying Customers Vive Jaiswal & Mark Dunlap 12 September 2013
  • © CustomerGauge / Directness BV Introduction •  Who this is relevant to: –  Sales/marketing/customer experience executives in SaaS companies –  SaaS providers who would like to convert free trial customers into paying customers •  What we will cover: –  Why do customers defect –  Using Net Promoter® as a metric in SaaS –  How to convert free trials into paid subscription –  Best practices from real clients Thomas S Watson, IBM 1921 *Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
  • © CustomerGauge / Directness BV About the hosts… View slide
  • © CustomerGauge / Directness BV A word about CustomerGauge… •  CustomerGauge is the leading real-time Net Promoter® measurement platform. –  Complete workflow and service recovery system –  B2b, b2c and b2e solutions –  Automated reporting and digital signage –  Automated, with integrations to CRM systems including SalesForce.com –  32 languages (reporting system in EN, DE, ES, FR, NL, CN) •  Launched 2007 •  HQ Amsterdam, global coverage with partners A D V E R T I S E M E N T View slide
  • © CustomerGauge / Directness BV Why do customers defect?
  • © CustomerGauge / Directness BV Lets see again…why do customers defect?
  • © CustomerGauge / Directness BV Case Study numbers from Gartner (2004). Assume 2000 customers Revenue = $6000m per year Average Revenue per Customer = $3m per year At risk — 55% Decline in wallet share Defect — 45% Poor experience 22% Positive experience 78% Complain 2% Don’t complain 98% At risk — 34% Issue not resolved Defect — 28% Resolved — 38%440 customers 431 customers 2 customers $7m 194 customers $582m 3 customers $9m 200 customers $711m 9 customers It’s the customers that don’t complain you need to worry about… In this assumption improving the customer experience by 1% is worth $60m At risk — 55% Decline in wallet share Defect — 45% Poor experience 22% Don’t complain 98%
  • © CustomerGauge / Directness BV Net Promoter in a nutshell •  No more 40 page surveys to a few contacts! •  Ask everyone a very short survey, two questions –  “How likely are you to recommend us to a friend or colleague?” •  Report on Promoters or detractors. •  One score •  Read customer comments Download our cartoon guide: http://customergauge.com/tag/nps- comic/
  • © CustomerGauge / Directness BV Ask and ye shall receive… Paying customer Didn’t convert 7 days left New signup •  Collect feedback at sign-up –  Sort the renters from squatters •  Just before expiry –  An opportunity to save unhappy customers –  If you can’t save, learn •  Didn’t convert? Learn why… –  follow-up, don’t give up •  “Thank you for becoming a paying customer!” Tip: optimize this process by automation and real-time feedback analysis
  • © CustomerGauge / Directness BV Acting on responses •  Organize and be ready –  Expect 50% or more of the responses to give comments –  Read every comment •  Distribute comments around organization –  Do it centrally or let the teams arrange –  CLOSE THE FEEDBACK LOOP •  Track open issues and time to close –  Acknowledge with 24 hours –  Let clients know what you will do –  Escalate to board serious issues. –  Report internally on issues •  Categorize, and deal with issues tactically or strategically •  Customer R&D – product development TIP! Incentivize staff to close issues in a short time
  • © CustomerGauge / Directness BV Real client example •  Integrated with Salesforce –  Automated surveying on triggers –  Behind the scene action –  Available to entire organization •  Hard metrics –  NPS by product –  Time to close –  Close loop ratio •  Focus on delta, don’t get fixed by the actual score Download case study: http://customergauge.com/2013/07/ verafin-applying-forensic-skills-to- customer-feedback/
  • © CustomerGauge / Directness BV In a nutshell… •  Use a simple metric – NPS is awesome! •  Its not more work, its time travel •  Get feedback and act •  With great data comes great responsibility •  Automate the process, focus on customers •  Communicate regularly and thank the ones who respond Check out how you can operate a world class NPS program: http://www.slideshare.net/adorrell/webinar-six-ways- to-operate-a-world-class-nps-program-29-aug2013
  • © CustomerGauge / Directness BV Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld. Thank you! Like to learn more? Get in touch vivek.jaiswal@directness.net mark.dunlap@directness.net