In SaaS Your Customer Retention is Critical

first_imgMore so than with other business models, SaaS puts emphasis on holding on to current customers. A low entry point and cost are what make SaaS an alluring alternative to traditional software. But thereafter, profits are reliant upon renewals. If you’re customers are staging a mass exodus after the first year, you’re missing out on vital (and profitable) renewals. Having a hole in your model when it comes to renewal rates can be quite costly to the SaaS business.To improve your customer retention rates, you need to look at the usual suspects and see where you can improve. How is your customer support doing? Are customers generally satisfied with your company or dissatisfied? If they’re not, you need to immediately fix that. How complicated is your sales process and how are your salespeople being compensated? Is it encouraging more sales and renewals?Poor customer retention rates can be fixed, if the right questions are asked. But the onus of conducting this sort of audit always falls on the company. Your customers aren’t going to write you a letter telling you exactly why you lost their business. For more information on this topic, read the full article by Jon Russo.AddThis Sharing ButtonsShare to FacebookFacebookShare to TwitterTwitterShare to PrintPrintShare to EmailEmailShare to MoreAddThislast_img

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