It's more important than ever to ensure that your customers are happy and successful in the current competitive landscape. This is especially true for B2B SaaS companies that rely on monthly recurring revenue and the satisfaction of their clients. Investing in consistent and on-going customer success is crucial for scaling your business and avoiding costly customer churn.
Churn and Net Revenue Retention
One of the most obvious reasons why customer success is key to scaling up your SaaS business is the cost of churn. Losing customers that you've invested in winning is not only painful, but it also represents a significant loss of revenue.
This applies to all businesses but when your business depends on monthly recurring revenue, this hits especially hard as every lost customer is a lost opportunity for future revenue. And, with each customer that churns, the cost of acquiring new customers increases, making it even more important to retain your existing customers.
Winning New Clients
As mentioned above, the cost of churn directly effects the cost of winning new clients. Every time you lose a customer, your total cost to acquire new ones goes up. If you have to first make up for a churned client before you can count a new one as an increase in revenue it can be a costly and time-consuming process. You've heard it before and we'll say it again, the cost of acquiring a new customer is 7-11 times more expensive than holding on to an existing client.
Company Champions and Word-of-Mouth
Happy and satisfied users your product often become vocal champions for your product. Identifying these external champions can be incredibly valuable to your business, acting as unpaid salespeople who can help generate new business through word-of-mouth marketing. You probably have a lot more satisfied users than you realize, but it can be difficult to identify them unless you strategically search for them or have a way to identify them from your CX data.
Your reputation is one of your most valuable assets, and it's hugely beneficial to get your happy clients to leave positive reviews of your product or other forms of testimonials. Happy and successful customers are more likely to leave positive reviews, which establishes social proof and can generate new business for your company.
Upsells, cross sells and deep sells
As your customers become more successful on your platform, they are more likely to continue to grow with you and purchase more of your product. This is particularly true for B2B SaaS companies that sell complex products that require ongoing support and customization. Again, identifying and approaching those clients that show signs of being delighted by your product can help you get more revenue from your existing client base.
In the early stages, it may be enough to have a great product and a team to answer questions. But to continue growing, you need a reliable, repeatable system for consistent customer success. By investing in your customers' success, you can avoid costly customer churn and scale up your business.
Cliezen is a Client Experience and Dynamic Feedback platform that can help you achieve your client retention and client experience goals.