Tags: SaaS


Customer churn rate is a really important metric to manage, especially for subscription based companies.  On average, SaaS companies report that their churn rates are between 5% - 7%. Having the churn rate as low as possible helps your business grow and your revenues soar.

One of the ways to reduce your customer churn rate is to ensure your customers are happy and that you meet their expectations. So how can this be achieved?

Here are 5 tips.




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1. Know Your Customer

How well do you know your customer?

Have you interacted with them recently?

Customers that feel that a brand is taking their personal preferences into consideration are more likely to stay loyal.

Use customer relationship management software (CRM) to contact your customers on a regular basis.  Ask for their feedback and use this information to develop and improve your product.


2. Inform Them of the Latest Changes

No matter how big or small the change, getting your customer to recognize that you’ve made additions or fixed your software’s small glitches shows that you are continually developing and improving customer experiences.

At the same time, you will be regularly interacting with your customers.

By creating an email newsletter or software updates, you can see what your customers are interested in. These insights can be leverage for more effective marketing campaigns


3. Tell A Story

To promote your business, tell a story about your product or service. When you tell a story,  you make your product more memorable helping you to not only retain customers, but to expand your client list.

Make the story about your customer. Validate your product or service by telling the story of how your customers have benefited and include customer testimonials.



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4. Make Your Customers Feel Special

Personalize your interactions and let the customer know you care by:

  • Using customer details to personalize every interaction.

  • Sending information that is relevant to the customer.

  • Sending educational content to your existing customers.


5. Make Realistic Promises

Make sure you can deliver on your promises. Don't over promise and be sure to manage expectations. Under-achieving will make the customer disgruntled and this can be disastrous for future customer relations.


By making sure your customers feel valued, you reduce customer churn rate. Its about having a customer service culture and knowing your customers needs and how best you can meet their demands and expectations.


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