SaaS Customer Retention: Reduce Churn and Drive Loyalty
Summary
While the major layoffs and other cost cuts have been the focus of headlines, internally, many leadership teams have landed on retention as the key to surviving and thriving during this uncertain economic period. This requires leveraging data and automation to drive expansion and retention strategies at scale with smaller teams and budgets and ultimately support their business growth. “Too many [companies] are missing their biggest opportunity to keep costs down: building loyal relationships with customers and other stakeholders,” stated Frederick Reichheld, the Bain consultant who invented the Net Promoter Score more than two decades ago – but his advice remains just as relevant now as it was in 2001. In fact, a study of more than 1,400 C-level executives and founders at SaaS businesses by PriceIntel found that while 70% of leaders were laser-focused on the acquisition, only 20% ranked retention as their top priority. They’re also canceling subscriptions to platforms they don’t use, or even those they do use but they deem “nice-to-haves.” “Retention at all costs” will likely become the new mantra for marketers as their businesses declare war on churn and focus on fixing their leaky buckets.
