In today’s age, SaaS businesses are constantly evolving and as your services grow, your customer base also does. However, since the global pandemic has hit economies all over the world, SaaS businesses are facing the impending cancellations, lowering sales growth, and dwindling customer base. Many people are losing their jobs and understandably, the financial crisis has forced customers to rethink the value of their usual subscriptions. For SaaS companies, they are committed to sales growth and surviving through this difficult time. This is why they need to tackle customer churn and reduce it. So can an Easy to Use Subscription Management Software help companies’ lower customer churn? Well, to start off keeping an eye on your key performance metrics and customer churn is most important among them. It usually increases when customer engagement fails, lack of value-added products, or poor onboarding process. Whether it is voluntary or involuntary churn, it is crucial to point out reasons why your customer is churning. Only then you can improve your sales growth. For SaaS businesses who depend on recurring revenue, tackling customer churn is of great importance.
Why is Customer Churn Increasing and how to Tackle it?
First of all, you need to understand why churn is taking place. As mentioned above, SaaS companies are faced with two types of churn. Voluntary churn takes place when your customers are voluntarily canceling or downgrading their subscriptions. This usually happens when your customers do not see any value in their engagement or products. Companies need to realize that their customers might be facing problems with affording their subscription plans. This is why offering discounts, coupons, add-ons so your customers are not burdened with paying for their subscriptions on time.
Further, by using Easy to Use Subscription Management Software like SubscriptionFlow, you can even pause or postpone customer subscriptions. This will offer your customers some relief during these tough times and allow your customers to see value in your products. Further another important reason why companies churn is poor customer service. Understandably, SaaS companies are grappling with sudden changes like shifting to remote work but this is no reason for your customer support to fall behind inapt and fast customer service. Also, having a centralized and streamlined customer relationship management system like ours will allow your team to manage all customer information and their invoices in one place.
Moreover, when it comes to your sales and marketing strategy during the pandemic, it has to be mindful of the current situation your customers are going through. Meaningful email newsletters highlighting how to cope with the pandemic, different resources to ensure good mental health without necessarily pandering to your products will show your customers’ that you care. When it comes to involuntary churn, it takes place due to failed payments. When you are using Easy to Use Subscription Management Software, you can use our smart dunning feature allowing our users to set retry logic for processing payments and sending email reminders for customers to update their payment information. To track your reporting dashboard, your SaaS company needs an Easy to Use Subscription Management Software which will allow you to track your SaaS metrics like churn and deploy these tips for countering unnecessary churn. All in all, times like this require your customer-facing teams to especially pay attention to their customers so your recurring revenue does not suffer.