With a global pandemic transforming the way companies operate, fear of slow growth and rising churn rates are valid concerns. And if you think SaaS companies are exempt from experiencing high churn rates in this uncertain business environment, think again. Data claims that around “Two-thirds of companies have experienced churn rates of 5% or more” – with over 30% reporting an increase in churn rates over the past year.
To put things in perspective, a Report by SaaS Capital claims that a mere “1 percent difference in churn can have a 12 percent impact on company valuation in 5 years.”
So how can companies reduce their churn rate and prevent losing even a single customer? You need to start at the very beginning. We have three words for you: Seamless Customer Onboarding.
Top-4 Ways in which Companies can Lower Churn Rates
- Make your Customers your Priority with Live Chat
If experience is anything to go by, the secret recipe to establishing a successful business requires companies to convert new sign-ups into active users on an ongoing basis. Undoubtedly, one of the best ways to achieve this is by putting your customers at the core of your offering by using live chat services such as the one Acquire offers:
First off, you’ll notice that the moment one lands on their website, the visitor is greeted by a live chat window that actively asks the user if they have any queries. There are two big learnings here:
One, it offers customers the chance to connect with the brand instantly, should they have any queries. Conversely, this platform also allows companies to educate customers about new offerings, perceived value for users, and deals that may be of interest to the latter. Let’s take another look at Acquire’s live chat tool which asks the user if they have any queries, without being annoying:
Two, using a round-the-clock platform like live chat encourages customers to air their concerns over recurring plans they may have subscribed to. As long as the queries get addressed in real-time and as effectively as possible, you can rest assured that your customers are not going anywhere. All thanks to greater convenience and a friction-free experience, courtesy live chat.
- Enhance your Customer Experience with Co-Browsing
“9 in 10 customers abandon a business because of poor a experience.” – Oracle Study
Apart from offering true value to your customers, there’s another element in the mix that can lower your churn rates: building quality-driven relationships with users. Say a first-time user is having trouble navigating your website. Wouldn’t it be wonderful if you could be their eyes, hands, and ears, guiding them visually in the right direction?
That’s literally how the co-browsing feature works. It simple words, you can troubleshoot collaboratively on-screen, anywhere. Plus, by communicating with your users on a more personalized and interactive level, you can start developing real bonds with them so that they turn into loyal customers- and even voluntary brand advocates! Here’s a snapshot of what co-browse feature looks like:
- Focus on Rolling Out Research-Led Content & Test Key Elements in your Brand Mix
Sure, images and graphics have a big role to play in garnering human attention, but where the image is queen, content is king. Whether it’s an in-app experience or your website, your customers need to be greeted and treated right.
Historically, customers have been known to stop renewing subscriptions because they start viewing their subscriptions as pointless. In such a scenario, it becomes imperative to gather insight into what is driving customer behavior and what their primary pain-points look like. Here are a few ways in which you can get a better pulse of your customer’s likes, dislikes, and problem areas:
- Roll out surveys and polls to understand what customers need or what’s lacking in your offering so that adjustments can be made based on actionable and authentic feedback.
- Work on creating a brand personality: It could be more humane, witty, smart, funny, whatever fits with your brand’s overall character and tone. The idea is to create a compelling story with slice-of-life segments so that it resonates with users, and they connect better with your brand.
- A/B Test different aspects of your communication/platform/offering to see what’s working and what’s not. Do customers prefer live demos over email support? How overwhelming is your onboarding process? Do you have too many notifications, freebies, and webinars on offer that will ultimately drive your customer away? These are just some of the questions you can ask yourself at this point.
- Integrate your sales management initiatives effortlessly into your existing CRM with Teamgate’s 360-degree inbound sales CRM software. Using this capability, you can get your hands on critical insights, reports, and forecasts required to keep your pipeline flowing smoothly. Additionally, generating leads and closing deals becomes a smooth process. Here’s a snapshot of the various advantages the software provides:
- Create a Holistic Onboarding Experience for Enhanced User Satisfaction
Onboarding isn’t about sharing everything. It’s about taking the user through the first critical steps to success.
Think of onboarding as a first (blind) date between you and your customer. It can either become a memorable experience or a horrifying one depending on your customer experiences the brand.
Whether you call it the stepping stone to success or the foundation upon which a satisfactory user experience lies, ensuring a seamless, interactive, and engaging onboarding process is key. How can you achieve this? Follow these simple steps:
- Streamline your onboarding process: You could pepper your website, social media platforms, etc. with useful and informative “How-to” videos and tutorials so that customers can immediately understand the core benefits they can leverage from your product/service. As mentioned earlier, Monday.com’s onboarding process is quick and effortless. Once the user signs up, they get an educative email explaining various features of the offering:
The Email Clearly Spells Out the Product’s Various Benefits – Image Source
- Highlight your offering’s value upfront, set the right expectations, and integrate convenient Call-To-Action opportunities by using proactive tools such as live chat. Let’s take a look at how JustGoodFoodBazaar’s integrates all the three elements in a collaborative manner, ensuring the new user feels comfortable using the new platform:
Plus, you can also establish a strategic email onboarding campaign like Monday.com does (as shown below) so that the users feel informed, inspired, and motivated to try the product or even renew their subscription:
“The total size of the public SaaS market in 2020 is projected to reach $157 billion.” – 99Firms
All things said and done, getting your customers to simply “Sign Up” for your products/services isn’t going to make the cut for creating a loyal and long-term customer base. The trick lies in demonstrating when and how your customers will achieve their first big-win and onboarding users in an effective, effortless, and agile manner. If you achieve both, retaining customers will be a cake-walk. Try these handy tips and optimize your churn journey, the true SaaS way.