Have you ever wondered what makes customers love the brands they do, so much so that they keep going back to it time and again? Your products and services are a fundamental reason, for sure. The pricing structures play a vital role too. However, receiving recognition as valued customers creates a substantial influence on customers to resubscribe to your business. When they feel they are being seen or heard, customer loyalty triggers, increasing the retention rate.
Do you, however, know how to build such kind of customer loyalty? Well, it begins with personalization.
Personalization has become a differentiating factor in businesses today. From Amazon to Netflix to Spotify, every SaaS brand is thriving by playing on the fronts of personalized retention marketing. Almost 60% of consumers state that personalized engagement based on past interactions plays a vital role in winning their business. If you deliver the right personalized experience, your business will drive overall revenue growth for your business, and boost customer lifetime value (CLV).
In this blog, we will take you through the top personalized strategies for customer retention and explain how it helps win customers back. However, before that, let us get to know the basics of B2C and B2B customer churn.
Let’s dive in!
First things first, every SaaS business faces customer churn. You get a customer to subscribe to your product or service through an extensive pre-defined marketing strategy and a well-webbed sales funnel. The whole process involves dire efforts, time, money, and energy. However, all of it goes to drain when the subscriber falls out, and the customer leaves your business.
The first step to reduce the churn is not strategizing for it. Instead, it’s knowing the reason why churn happens in your SaaS business in the first place. It’s half the battle won!
According to research by the U.S. Small Business Administration and the U.S. Chamber of Commerce, the top reason for a customer unsubscribing your business is dissatisfaction with your services. They feel like the company is indifferent to their needs and wants and hence, discontinues their subscription.
Apart from assessing what’s wrong and improving your customer service, you should include personalization in your strategies to make customers feel you’re paying attention to them.
Lincoln Murphy, a Growth Consultant focused on customer-centric growth quotes, “Companies generally end up diverting resources from the customers with Success Potential who could actually benefit from their attention to those that, regardless of effort, will not be successful.”
Not every customer signs up for your product being fully aware of what they need. However, during the consumption process, as they find out the product or service isn’t the best fit for them, they take the exit door.
The only solution to tackle this problem is the recreation of your business’s buyer personas.
Not every customer leaves you because they have a problem. Most of them leave just because they find your competitor’s services better. It means that your brand has no Unique Selling Point (USP) that could stop your customer from considering you interchangeable from your competitors.
The solution here is to create a loyal customer base so that they stay with your brand even if your competitor is providing cheaper solutions. One of the many ways to do so is imposing personalization as an essential part of your strategies, as it can spark customer loyalty.
And when they leave, they often don’t go quietly – the average dissatisfied customer will tell between 9-15 people about their experience.
It has been established long back that humans are a social species. They need a feeling of community to establish understanding and mutual value. However, by automation through dunning software, you are restricting the communication, and hence, connection.
Your customers don’t want to be treated as a machine. If your actions are reflecting that, you are in trouble. They don’t want to be told what they should do or shouted at.
Moreover, when the communication is linear, your customer fails to follow up with your engagement process. Since they have no participation, they can fall out easily. Therefore, instead of directing them, add more one-to-one dialogues in your win-back email campaigns.
Track and analyze the actions of your customers constantly to be able to follow the signs of churn. It will allow you to react proactively to stop the customer from leaving. If the customer has already left your subscription, use personalized email campaigns to keep the conversation going. The past insights of the customer and their purchasing behavior can come in handy in crafting customized strategies.
In-app messages and live chats are some communication tools that facilitate personalization at its most flexibility. You see, there are no rules here – your messages and notifications can be as personalized as you want and need.
The primary motive of in-app messages and live chat is communication support to solve issues in real-time for your customers. However, it can be as functional when you find a customer in the process of falling out and are trying to win them back.
Let’s understand it with an example. Churn analytics show you that a customer has not used their account for weeks now. You can send them a message asking about its reason. Most businesses use dunning software to do so. However, automated messages make little to no impact. Customers feel that you care about them when they receive a personalized message from a person with a real name and a real email address. It not only induces response but also lets you know the reason behind their inactivity.
To win back canceled customers, you need to adopt a personalized payment recovery approach and part ways from automation. Gravy Solutions, a SaaS revenue recovery business, replaces your traditional automation approach with the personalized human approach and improves the retention rates of your SaaS business.
In today’s age, there is no other platform that is as casual, personal, and rewarding as social media for personalized customer retention. It works effectively for two reasons:
There’s so much you can do using social media platforms to show your customers that you care about them. However, before you put the plan into action, you need to prepare the base strategy. To make the targeting easy and effective, segment them into different groups to keep the campaigns for your current customers and past customers separate.
Once you have segmented your customers, you can put the following idea to use:
The increasing churn rate is a problem in every SaaS business. Statistics by Statista show that the churn rate varies from 10% to 25% for different industries.
While (some) businesses adopt strategies to minimize the churn, not everyone succeeds at it, not instantly, at least. So in the meantime, you should try to gain as much advantage as possible from the churn by conducting exit surveys. Many businesses fail to do so.
Exit feedback is a form of survey where you ask questions from the customers when they are leaving about their reason for unsubscribing. The surveys can be short, including just a couple of questions, right at the exit webpage. Or you can send a form via email that asks questions in detail. However, the best method is the one where resistance is low. Therefore, ask direct, easy, multiple-choice questions.
The idea behind them is to gain a wealth of information that explains their reason behind unsubscription. Later on, you can use the data to win the very customer by creating a personalized win-back campaign.
For example, if a customer unsubscribes because of an unresolved issue and poor customer service, you can first fix the problem and save other churns that could happen because of the same issue. Later, you can have a person of authority send them an email stating you have resolved the issue and would like to have them back on deck.
Personalization puts the customers at the forefront. Customers always like to feel like a brand values them. Hence, a crossover of personalization and retention strategy works wonders to keep customers in SaaS businesses.
If you follow these personalized retention strategies effectively, they can mark the difference between successful and struggling businesses. To get help with retention marketing at the ground base, get in touch with Gravy Solutions.