Keeping Your Customers: How to Reduce Churn
Jun 2, 2020
Churn is a scary word in SaaS. Let’s face it, you can’t stop it, but you can reduce it. Here’s how.
Churn is a scary word in SaaS. Let’s face it, you can’t stop it, but you can reduce it. Here’s how.
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Keeping Your Customers: How to Reduce Churn
80% of customers will renew their license just because they got a simple email
Churn rate is one of the most defining metrics in any subscription-based business if you don’t know what churn rate is basically the rate at which your are losing customers if you start with a hundred customers in the beginning of the month and you finish with twenty customers in the end of the month that means you have an 80 percent churn rate. Today we want to focus on little things that you can do in order to avoid losing customers and improve the churn rate so you make more money
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number one is recurring payments if you have Netflix or Spotify you know that you don’t have to be reminded to pay for those things they automate that payment so you don’t have to think about it and when you don’t have to think about it you don’t have to really evaluate if you need it or not so try to use recurring payments in order to avoid some of the churn rate
number two, use reminder emails if you put together a simple email reminding your customers that their license is about to expire you get a big chance to get those people to go back to your business 80 percent of customers will renew their license just because they got a simple email
number three increase the dunning period the dunning period is the time that you basically give up trying to charge someone but for example in our case, we used to have a dunning period of nine days by increasing the dunning period in three days we saw a 50% increase of people actually paying for the service
number four fixing potential problems that your customer might have if you know your customer good enough you know what kind of issues are gonna find in the way so set up enough guides videos or any way you can help them out to go through. Explain them how your product works, so they don’t have to find any problems and leave your product
and together with that number five extend the onboarding period don’t just stop helping your customer try to extend the time that you’re gonna give them good tips you get in touch with them or you just gonna try to be helpful. If you extend that period your customer is gonna find less reasons to leave your product so extend the onboarding period
hopefully if you follow some of these tips your churn rate it’s gonna decrease you’re gonna make more money and your business is gonna be more successful the idea of decreasing the churn rate is that more people stay with your product so try these things let us know how it go and we’ll see you next time
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