Reducing #SAAS customer churn by 5% increases ROI by 95%.
These numbers may well vary depending on your business, but the principal holds true.
The longer you keep you customers, the better the bang for your buck.
It’s why I talk about customer lifetime value so much.
I don’t want SaaS vendors to focus on customer acquisition.
I want them to focus on customer retention.
SaaS businesses don’t fail because the platform doesn’t offer value, and rarely do they fail because they can’t find enough customers.
They fail because they can’t keep the ones they have.
Of course, selling is important, but finding new customers is as much as 25 times as expensive as keeping them.
Better then to invest time and effort looking after the ones you have, and it’s why I’m so infuriated by marketing agencies who bang on about lead generation and filling funnels.
They’re rewarded for the volume they achieve.
What about the quality?
If those same customers sign up and leave in a few months, it’s a massive waste of time, money and opportunity.
I helped LANSA keep its customers for 30 years.
No mean feat in the ever changing world of technology, and they stayed because their problems were being solved.
How did I do it?
Let’s have a chat, and I’ll let you the secret.