November 2023

Customer satisfaction and retention are intrinsically linked. If you fail to maintain high levels of customer satisfaction, your retention levels will suffer, reducing revenues and profitability and forcing you to invest even more heavily in attracting new business. Conversely, driving up customer satisfaction makes life significantly easier for any SaaS business, with improved revenues, referrals and profitability! 

Below we will look at both Customer Satisfaction and Retention in isolation and how they are linked. We will also review strategies to improve both metrics.

Figuring out the right software stack to help manage your Customer Retention goals can be tricky. It really comes down to what your specific goals are, what type of market you serve, the customer data you retain and where that data resides.

There are some specific types of tools you should consider. Customer Relationship Management (CRM) solutions, Customer Success Platforms (CSPs), Business Intelligence (BI) tools and Helpdesk software could certainly all form part of your stack. 

In the ever-changing and relentless world of e-commerce, it seems like each new customer is a blessing. However, getting them to love your brand and come back to it frequently requires not only impeccable service and integrity, but a set of certain promotional skills and a lot of patience. This is why once this trust is earned, it should be greatly appreciated and rewarded whenever possible.

Customer retention is defined as a company’s capability to retain a certain customer for a certain period. Unfortunately, reading peoples’ minds is still not an option, but you can successfully evaluate the level of their satisfaction by the actions they take within your business‘ digital environment. This is precisely how customer retention works, and if its strategies are well-constructed, it is an utterly powerful tool that can improve brand awareness, loyalty, and of course, revenue.

Having a community of loyal customers who identify with a brand and come back to it regularly is the backbone of any successful business. However, that would be difficult without constructing a clear plan to keep them for as long as possible.

Being able to understand your customers’ level of satisfaction and behavior at a deeper level is precisely what can bring your business better customer retention, and increase brand loyalty and revenue. Customer retention analysis can help you achieve that, but first, you need to know how to properly conduct the given process, which are the most important metrics that should be analyzed, and what data from the numerous spreadsheets should be taken into consideration.

Introduction

Customer churn is both a phenomenon and a critical metric. It describes the process of customers deciding to stop using or paying for your product or service.

Churn’s impact is felt most keenly in subscription or SaaS companies where there is an imperative to retain customer relationships for as long as possible. How successful you are at churn prevention defines how successful you will be as a SaaS business in the long term.

The following guide explains what customer churn is, its impacts on SaaS business and how you can try to mitigate it to build a more sustainable customer base.

Silly question, right? Customer retention simply means holding onto your existing customers. The problem is, however,  it’s not always a simple process to identify, understand, measure and improve the rate at which you retain customers. 

In the SaaS and subscription business (our focus here at Akita), your rate of customer retention can be the difference between failing completely and being wildly successful. In traumatic economic times, when acquiring new business is hard, companies that hold onto their customers and even grow their customer revenues, are the ones that survive and thrive.

So, if you want to learn how to improve your retention rates and (by implication) reduce your rates of customer churn and, even better, start to grow the revenues you earn from existing customers … read on!