Your customer churn rate has the power to make or break your SaaS university. Although it’s exciting when new customers start flooding in, the challenge lies in getting them to stay.
Losing your existing customers is costly; on average, it can cost companies 5 times more to acquire new customers than to keep an existing one. It’s much harder to sell your services to new customers, which is all the more reason to implement strategies to reduce churn as soon as possible.
Here are 4 ways you can start reducing churn rates for your SaaS university today.
Offer Potential Churners An Alternative
You’ve probably seen this tactic with big companies like Amazon or Netflix; try to unsubscribe, and a popup appears offering a range of alternative options. It’s always easier for a client to stay with an existing service, so by offering them things like troubleshooting or plan adjustments, you increase the likelihood that they stick around. By making it easy for them to stay with your SaaS university, you can greatly reduce churn rates.
Remind Them What They’ll Miss
When a customer tries to leave, it helps to remind them about all the awesome features and benefits they’ll be missing out on. This can be similar to a popup style window that appears asking them why they’re leaving. This is your chance to make them think twice about what you can offer compared to other SaaS companies. If it’s enticing enough, there’s a good chance they’ll change their mind.
Offer a Downgrade
If your SaaS university operates on a subscription model, offering a downgrade can be an effective way to reduce churn. When someone tries to end their subscription, offer them a reduced price to tempt them to stay. You can even make this reduced rate exclusive for outgoing customers, which will make them feel like they’re getting a special opportunity for savings.
According to HubSpot, 55% of people report having discontinued using a product or service because it was too confusing. What’s more, 60% of consumers evaluate a company’s onboarding practices before they make a decision, according to Wyzowl. It’s clear that proper onboarding is critical to reducing churn rates.
Bouncing back from a bad or difficult onboarding experience is almost impossible, and it’s the quickest way to lose new clients. Suffice to say, looking for any improvements that can be made in your onboarding practices should be a top priority.
Final Thoughts On Reducing Churn Rates For SaaS Universities
Finding creative ways to keep your existing clients is the lifeblood of any business, but especially SaaS businesses. With so many competitors, it’s easy for a customer to go elsewhere in the SaaS industry. That’s why implementing strategies to reduce churn rates is critical.
Things like offering alternatives or downgrades, featuring tempting reminders, and excellent customer onboarding practices can all go a long way in reducing churn for SaaS universities. Want to learn more about how to make your SaaS university a success? Contact us today to speak with our expert team!