“Technology and software companies spend millions acquiring new customers, yet customer retention is what separates top performers from their competitors.” – McKinsey & Company
Even with a steady flow of new customers, a high churn rate can easily negate revenue growth when factoring in acquisition costs. Instead, by focusing your efforts on customer service, you can increase customer retention, building a loyal customer base that contributes to growth.
According to Invespcro, it costs five times more to acquire a new customer than to retain an existing one. Thus, by shifting your focus from acquisition to retention, you reduce revenue loss caused by churn. Loyal customers also tend to buy more, so can add to your bottom-line significantly.
To fortify your customer retention efforts, you need a solid customer experience strategy. This will be a common theme in future, with Gartner predicting that 81% of companies will compete mostly or entirely based on customer experience in 2019.
You’re already committed to ensuring exceptional experiences for your customers – right?
Well, 80% of companies that participated in a survey conducted by Bain & Company believed their customer experience was great. Unfortunately, only 8% of customers agreed.
But don’t worry. As a subscription-based business, you have enough opportunities to interact with your customers and improve their experience on every level.
Below we’ll share some tips proven to help you design a powerful CX strategy for your SaaS business.
Curious to hear further details? Head on over below.