Treating your best customers well is key to any successful business. This is especially important for a B2B SaaS business that relies on a subscription-based model for revenues.
As customers only spend a small percentage of their lifetime value (LTV) upfront, customer retention becomes all the more crucial for B2B SaaS businesses.
Why is that, you ask?
Because a mere 5% increase in customer retention can go on to increase company revenue by 25% to 95%.
And, since acquiring a new customer is 6 to 7 times more expensive than retaining an existing customer, growing your Net Revenue Retention (NRR) should take the center stage.
In this blog, we look at the different ways you can improve the NRR of your B2B SaaS business.
1. Analyze and Optimize Product Engagement
Putting your best foot forward with a good onboarding flow goes a long way in creating long-term relationships with your customers.
Give your customers a walk-through of your product and how it stands above the rest. When they see what makes your brand special and how it provides a solution to their problems, they are less likely to switch.
If you introduce new features of your product, ensure your customers know about it via emails, blog posts, or in-app notifications. Keep them hooked on your product by making it an essential tool for them.
With smart UX writing, you can even convince free-trial users to transition into paid customers to enjoy the full features of your product.
2. Get Strategic about Churn Management
When you are a B2B SaaS business, you have to deal with the perils of different types of churn. Online Payments could be canceled for different reasons from technical glitches to expired credit card information resulting in involuntary churn.
Unsatisfactory customer support can also come in the way of a great customer experience. Or, your customers may voluntarily churn because your product does not offer the features a competitor might be offering.
A subscription management solution can help you monitor churn management so you don’t lose out on valuable customers. Once you identify your issue areas, you can work towards reducing churn and retaining your existing customers.
3. Lead with NPS Surveys
Net Promoter Score (NPS) Surveys are one of the easiest ways to collect customer feedback. They can be used to increase customer retention by building customer experience programs around the surveys.
For example, you could ask your customers – on a scale of 1 to 10, how likely are they to recommend your business to someone else.
Image via SurveyMonkey
Based on their responses, you can split them into different categories.
Customers scoring between 9 and 10 are your most loyal ambassadors and are very happy with your product. Whereas, those who score between 0 and 6 are high churn risks, the ones you need to prioritize.
4. Improve Upselling and Cross-Selling
An effective way to grow your NRR is by focusing on expanding your revenue from the existing customers.
Ascertain the value metrics that make you the preferred business in the eyes of your customers. Based on that, offer irresistible solutions that nudge the customers to grow their spending over time.
If you have tiered pricing plans, recurring billing tools can work wonders to grow revenue by cross-selling and upselling existing customers to add-ons and higher-value plans.
Notify customers of the add-ons available if they upgrade their accounts. You can also remind them of the features they could be missing out on by not upgrading.
5. Monitor Your SaaS Product Usage
While NPS surveys do an effective job of letting you know how your customers feel about your product, what about those who don’t participate in the survey?
There can be many customers who don’t offer feedback. Take this absence of a signal as a major churn indicator.
Track how these customers are engaging with your product. Is there a decline in product usage? Are they visiting the platform less frequently?
Use these signals to anticipate churn and craft effective strategies to retain these customers.
6. Offer In-App Support for Improved Customer Experience
Offering in-app self-service support is pivotal in today’s digital landscape to allow users to find solutions without requiring external help.
Lesser support tickets would also translate to a reduced burden on your support team. By having an in-app resource or in-app guidance center, you can make it easier for your customers to experience value.
An in-app integration with the right type of CRM tool can help you manage your customer data and information in effective ways.
You can even have a knowledge base or FAQ center to reduce the knowledge gap and shorten the learning curve for your customers to enjoy your product.
For example, you can create effective shoppable videos for your online customers and mention the way to how to connect with you for any questions regarding they purchases
Bottom Line
It’s no secret that Net Revenue Retention is a key metric for any B2B SaaS business to assess the sustainability of their business’ revenue growth.
Having a clear understanding of your customers can go a long way in generating repeatable earnings while increasing the customers’ lifetime value.
Identifying churn, monitoring your product adoption, and paying attention to NPS surveys can further make it easier to expand customer accounts and retain revenue.
We hope the above tips can help you optimize your retention strategy and put you on the track to success.
Author Bio – Reena Aggarwal
Reena is Director of Operations and Sales at Attrock, a result-driven digital marketing company. With 10+ years of sales and operations experience in the field of e-commerce and digital marketing, she is quite an industry expert. She is a people person and considers the human resources as the most valuable asset of a company.
In her free time, you would find her spending quality time with her brilliant, almost teenage daughter and watching her grow in this digital, fast-paced era.
