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Care and Feeding of SaaS Customers | 10 Tips to Drive Loyalty


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SaaS business models are driven primarily by churn - that's the rate at which your customers are bailing out. Here are 10 simple tips on how to generate loyalty and avoid the churn monster.

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Care and Feeding of SaaS Customers | 10 Tips to Drive Loyalty

  1. 1. “CARE & FEEDING OF SAAS CUSTOMERS” 10 tips to drive loyalty #saas series |
  2. 2. 1.churn is bad churn is a critical metric for SaaS businesses. churn measures the rate of customers who bail out every month. healthy SaaS businesses have low churn. if you leave me now...
  3. 3. 2.LTV is good lifetime value is the customer’s total $$ worth from the day he signs on to the day he stops renewing. as it happens, churn and LTV are inversely related such that churn = 1/LTV. healthy SaaS businesses have high LTV renew, renew, renew
  4. 4. 3.forever yours so what makes SaaS customers loyal? or how do you minimize churn? or how do you maximize LTV? or how do you succeed at SaaS?  we’ll always have Paris…
  5. 5. 4.consumption gap customers who do not use your product wide and deep are more likely to defect. it means they simply don’t “get” your product. which means it has limited value to them. which means either your product has limited value, or you’re not communicating the value hard and often enough. or both… big deep mouthfuls
  6. 6. 5.keep talking customers you don’t interact with frequently are more likely to defect. remember the old saying: out of sight, out of mind. any excuse to converse with customers is a good excuse to feed the relationship and keep them engaged. engaged customers are loyal customers. oh, one more thing…
  7. 7. features new features aren’t just important as a way to enhance your product. they’re also an opportunity for communication. never waste an opportunity to inform and enchant customers at the same time. but don’t saturate them with trivial new feature releases either. now with 25% more!
  8. 8. 7.make heroes customers who feel like heroes at their job from using your software will never leave. if they succeed, you succeed. your job is to make heroes. believe it or not, I can fly!
  9. 9. community can you think of any great product that doesn’t have a rabidly loyal community supporting it? I didn’t think so. design, build, and nurture it – or your competition will. vires in numeris
  10. 10. 9.learn the word ‘no’ this one can seem counter-intuitive, right? but saying ‘yes’ to every customer request indiscriminately lowers quality for a majority of customers in the long run. so be crystal clear from the onset about what saying ‘yes’ means for overall product experience. and remember, it’s not the ‘no’ itself, it’s how you say it. saying ‘no’ is ok too
  11. 11.’m I doin? survey, email, tweet, post, blog, but whatever you do… ask customers how you’re doing as often as humanly possible. but don’t ask unless you have the will and means to adapt and adjust accordingly. #embracethefeedback
  12. 12. 11.bonus tip! if you don’t instrument your backend, you won’t have a clue what your customers are doing, where, when, or why. so you won’t know how they’re using your product. or not. and if you don’t know that on a daily basis, you’re flying blind. never assume. always measure. measure, don’t assume