Tags: SaaS


Customer churn rate is a really important metric to get under control, especially for subscription based companies. Although many 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 to 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 much do you really know your customer?

Have you interacted with them recently and got the latest information on their wants, needs and desires?

Customers that feel that a brand is taking their personal preferences into consideration are more likely to stay loyal compare to those who feel that a brand has ‘abandoned’ them.

You can use customer relationship management software (CRM) to keep contacting your customers on a regular basis, ask for their feedback, or any news they want to share.

This will help develop your product in the right direction by taking into consideration what your customers want.


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 likely be regularly interacting with your customers.

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


3. Tell A Story

If you want to be really successful, you need to tell a story about your product.

How it has helped you succeed or what has influenced you to make certain changes. When you tell a story you make your product more special and more memorable, helping you not only to retain customers but also to expand your client list.

On the flip side, the story does not have to be just about yourself.

Tell the story of how your product has influenced others or supported their business. Turn your stories into validation or ask your customer for a testimonial.




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4. Make Your Customers Feel Special

If you were a customer, what would make you feel better: feeling that you are just another number, or that you are taking care of with personal approach and genuine interest?

The answer is obvious and the only way you can actually achieve that is by having your interactions personalized.

Here are several ways to do this:

  • Use customer details to personalize every interaction.

  • Only send information that is relevant to the customer.

  • Send an educational content for an extra value to delight your existing customers.


5. Make Realistic Promises

Nothing is more disappointing for customers than having promises that are unfulfilled.

For instance, if you promise that your system will save 10% on their spending, it must make that saving. Underachieving will make the customer disgruntled and this can be disastrous for future relations and will likely make your customer leave.



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

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