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6 tips to drive SaaS retention in 2020 and beyond | Traction Conf 2019

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The following six principles represent a methodology founded on the belief that the best way to retain customers is to reimagine the cancel experience. Companies could and should be doing more to meet the needs of customers in the moment. Yes, even if that moment is the point of cancel. By taking a systematic approach to retaining customers, SaaS and subscription companies can grow in a long-term, sustainable way.

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6 tips to drive SaaS retention in 2020 and beyond | Traction Conf 2019

  1. 1. Drive Retention 6 Tips to in 2020 and Beyond
  2. 2. CEO & Co-founder guy_marion Guy Marion
  3. 3. Automated customer retentionfor high-volume subscriptionbusiness Why retention? 2019 State of Industry 6 steps to building a churn funnel Summary Agenda
  4. 4. Automated customer retentionfor high-volume subscriptionbusiness Source: 2017 Pacific Crest SaaS survey forentrepreneurs.com/ 2017-saas-survey-part-2/ 2019 TECH IPOS: CUSTOMER RETENTION IS 🔥
  5. 5. $42M ARR lost in 5 years… due to high churn, nearly 4X the total ARR reached by ARR MONTHS SINCE LAUNCH 0.5% Gross Churn (-3.5% Net) 1% Gross Churn (-2% Net) 2% Gross Churn (0% Net) 4% Gross Churn (3% Net) $57M $16M $26M $40M The fastest growing companies retain more
  6. 6. it isPLUS 7x acquire 
 a customer more expensive to $ $ $ $ $ $ $ retain 
 a customer $ than to
  7. 7. Source: Survey of 332 subscription CEOs, executives, and founders State of Retention
  8. 8. of companies
 say customer retention… 97% 97% yes 2.8% no 2019 State of Customer Retention Survey is a big win!
  9. 9. Percent of companies that 
 feel retention is prioritized appropriately 68% B2B 44% B2C
  10. 10. of B2Cs offer bundles 51%58% of B2Bs test discount offers AND Companies turn to discounts and deals to retain customers
  11. 11. Churn Funnel Six steps to building a
  12. 12. 1 Ditch your exit survey and build a customer churn funnel
  13. 13. 2 Segment your customers and personalize their cancel experience Identify
  14. 14. START First value 
 (successful trial) Grow value 
 (deployment) Increase
 Users Increase
 Usage Expand Functionality Churn ChurnChurn Customers cancel throughout the lifecycle…
  15. 15. Segment users by key dimensions •Billing term •Usage •Age •Revenue •Plan/Product
  16. 16. Create loss aversion & celebrate past successes
  17. 17. 3 Understand categorically why customers leave Engage & Learn
  18. 18. Saveable churn Non-saveable churn • Poor onboarding ⭐ ⭐ ⭐ • Needs or interests changed • Misunderstood product ⭐ ⭐ • Poor performance or reliability • Poor customer experience ⭐ ⭐ • Too complicated • Pricing: not seeing value ⭐ ⭐ • Downsize or gone out of business • New stakeholder or executive ⭐ ⭐ Customers are influenceable 20%of customers cancel 
 for the wrong
 reason
  19. 19. Systematically build churn intelligence
  20. 20. Align short-term product fixes, success motions, and sales/marketing fit
  21. 21. 4 Test and evolve tailored save offers Engage & Learn
  22. 22. Pause your plan
  23. 23. Downgrade instead?
  24. 24. Name your price!
  25. 25. 5 Automate alerts and retention workflow in your GTM stack Retain Customers
  26. 26. Trial signs up Self-Service Sales Customer buys Expand Contract Customer Support / Retention Customer Data Customer Success Subscription MgmtCustomer Data Engagement New Instance Save Starts to Cancel Qualified Unqualified New subscription Subscription terminated Churn data Customer lifecycle tool stack
  27. 27. 6 The True North: incremental revenue Retain Customers
  28. 28. 3,573Identified 3,209 Canceled Watch List 20% 80% Test & evolve to grow your save rate Saved 51% 364 49% Engaged 714 Saved / Lost 10.1% Saved
  29. 29. Optimize for cohort performance
  30. 30. Agend a Ditch your exit survey and build a customer churn funnel Segment your customers and personalize their cancel experience Understand why customers leave Test and evolve tailored save offers Automate alerts and retention workflow in your GTM stack Optimize for incremental revenue Takeaways
  31. 31. Thank you! brightbackIO brightback.com
  32. 32. Let’s think about Identify at-risk accounts Engage & Learn with personalized experiences Retain customers to drive incremental revenue

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