August 3, 2020
I’ve been building SaaS products for a long time. One aspect I’m personally struggling with is finding lots of new paying customers each month.
Customer retention always has been the key to me. When you think about it, a 15% customer churn rate means you’re replacing your entire customer base every six months.
It felt like focusing on keeping the hard earn paying customers was the way to go while continuing to make sure the leads’ pipeline is getting filled with quality prospects.
At my last startup, we decided one day to investigate how people were using our product. It has been a shocker. We had a hard time believing that most of the intuitions we had about how people would use our product proved wrong.
I really enjoy the SaaS market, and I believe a tool that increases customer retention will help to grow a business since the efforts of converting paying customers will be optimized.
The customer retention metric is critical. It goes hand-to-hand with customer churn. Improving it affects your monthly recurring revenue, your lifetime value.
It will be hard to increase the retention until you have an excellent knowledge of what part of your product sticks or slips.
Most often than not, you don’t know why a new user did not convert from their trial or why a paying customer cancel.
You can reach out after the fact, but wouldn’t it be better to reach out before those cancellations happen?
Only checking if a user had signed-in in the last 30 days is not enough to prevent canceling. It does not tell you the real truth about what you could do to make them return.
Another problem I face with past SaaS was regarding product updates. How can you be sure that your last product update truly made a difference?
Did a popular feature still use as much? Had you added too many things that your product feels bloated and your trial to paid conversion dropped.
It’s hard to stay on top of everything while managing your business. You might have some SQL queries here and there. But at some point, they’ll not be enough to give you the way to improve your customer happiness.
We’re planning to launch a series of tools to help your team improve your customer retention, thus decreasing your customer churn rate.
Our first tool is in beta at the moment. It helps you analyze your daily usage and understand where to focus.
Based on customer feedback, we’re going to continue launching tools to make sure your effort to get paid customers is maximized and grow your customer base instead of renewing it.
If you have any questions or would like to reach out, we’re on Twitter @nochurnapp.
If you’d like to give NoChurn a try, please create an account and let us know your thoughts.