When competition is just a click away, how do you satisfy your clients and reduce customer churn? That is the question every business owner, no matter what industry, is always thinking about.
Did you know that SaaS agencies’ average monthly churn rate is about 5%? It’s low because you’re providing a significant service to others that allows them to streamline and scale their businesses. However, if you discover your customer churn rate is higher, or if you want to reduce customer churn even more, it’s time to take some action!
So how do we combat customer churn? We must first know what some of the biggest reasons for customer churn are, and then we can learn how to leverage HighLevel software to solve those issues.
What Is Customer Churn In SaaS?
In the SaaS industry, customer churn comes in 2 parts: voluntary and involuntary. It’s important to know the difference between the two because one should pull your focus over the other. However, both types of customer churn can wreak significant havoc on your business if not rectified quickly. We can utilize HighLevel software to help in both types of situations, albeit one type being a simpler process than the other.
Involuntary Customer Churn
One of the main reasons for customer churn in SaaS is the lack of payment. When you sell Software as a Service, you typically have your clients on a monthly subscription-based payment plan. Sometimes those clients get new credit cards, the expiration is passed, or it simply declines the transaction for other reasons.
The good news is that these customers don’t need to be nudged to rejoin the subscription service; they just need a few gentle reminders that their payment failed.
HighLevel Automated Workflows
Through our workflows, you can automate personalized messages, both text and email, that let them know their card needs to be updated. Once the workflow is activated, it can follow a set of “if/then” statements for actions to be taken. This action will continue until you’ve either recaptured the client or they discontinue their subscription.
Don’t let these customers fall through the cracks because they are one of the simplest ways to reduce customer churn.
Voluntary Customer Churn
Voluntary customer churn is any type of issue that causes customers to leave on their own terms. For example, when a client decides to cancel their subscription to your SaaS platform, are you asking them why they are leaving?
Some reasons for leaving are:
- Inability to navigate the software
- Weak customer relationship/poor customer experience
- Poor customer experience
- Lack of customer/community support
- Unachieved outcomes
- Problems with the software (glitches, bugs, connection issues, etc.)
Let’s take a deeper dive into a couple of these reasons.
Weak Customer Relationships or Poor Customer Experience
As you should know, the cost of attaining a new client is about two to three times higher than the cost of retaining a current client. If your customers are leaving due to a poor customer experience, you may not be creating a strong business relationship with them after they’ve signed on to your business. Your clients are the lifeblood of your business and can help you build your business by bringing on even more clients through their referrals and partnerships. It’s important to continue fostering the relationship far after they’ve committed to the business.
Think about it; you’ve spent so much time attempting to capture them as a client, do you still devote that level of time and effort once they become one?
The key to retaining clients is COMMUNICATION. Are you available at any time to answer their questions? Are you able to resolve their problems swiftly? If you answered no to either of those questions, you might be fueling the flames toward a negative customer experience.
How HighLevel Can Help
When you use HighLevel, you can utilize several tools in our software to increase customer relationships.
Our web chat widget allows customers (and prospects) to communicate with you immediately and allow for the conversation to continue through text message.
This ability untethers the user from the website and allows them to continue on with their day. In addition, the movement from webchat to text message also creates a more personal communication experience.
The best part about this process is that you don’t need to get heavily involved until absolutely necessary.
You can use the programs we have in place to automatically scan for keywords and phrases that help you identify some of the most frequently asked questions. From there, the system sends tailored responses you have written to guide them to the solution they seek. If necessary, you can build a workflow that leads them to schedule an appointment to discuss their needs further. This allows you time to look into the problem and assuages their need for immediate personalized support!
When a client doesn’t understand how to navigate the software or doesn’t use it to their full advantage, they can see a poor outcome. They may not immediately jump to their lack of knowledge of the program but instead conclude that it is the fault of the program itself that isn’t yielding the desired results.
They may need help understanding where they fall short in the lead nurturing process or fully use the digital marketing tools to their advantage.
It’s important to know what is happening at a glance with their business and where it may be lacking in their attempts to scale their business.
But how do they know what they can do better? We have it covered.
HighLevel Insights Dashboard
When it comes to understanding their business through the HighLevel platform, they have a customized and real-time Insight Dashboard that shows them their ROI, current opportunities, campaign statistics, where prospects are in their journey through the funnel to capture them as clients, and much more.
If they need help understanding how to adjust their course to better their outcomes, it’s all available to them and you as their SaaS provider!
You can assist them in boosting their outcomes by adjusting a few things, like adding workflows, triggers and automations, and more.
They can then monitor their progress and continue to see their goals achieved through a trackable interface.
By being able to see real tangible results, it reduces the churn rate since they can adjust and adapt and then see significant improvements. In addition, they won’t automatically blame poor outcomes on the system but will learn to use it properly and to their advantage.
Let HighLevel Help You Reduce Customer Churn And Build Customer Loyalty
As we stated above, your customers are the lifeblood of your business. They can help you scale your business by showing successful outcomes, positive customer experiences, testimonials, and referrals. They are a major source of your marketing strategy, and retaining them is more cost-effective than attracting new clients each month.
If you’re truly looking to scale your business by both reducing client churn and increasing your client base m, it’s time to utilize the all-in-one SaaS platform that has white-label capabilities and endless possibilities.
Try our HighLevel SaaS platform free for 14 days here!