Churn. The modern-day grim reaper of SaaS.
Sowing doubt in your customer base and preying on executives with ‘funnel vision’ — the grim reaper shows no SaaS company mercy.
He haunts B2B vendors with actual accountability for shitty customer experiences.
And with one all mighty swoop of his blade, he slashes your prices makes your CSM’s cry and cancels evergreen contracts without notice.
See, 10 years ago vendors were the grim reapers. They could haunt their customer’s dreams until they renewed. These were the on-prem days, before SaaS really took off and customers were locked into lengthy maintenance and support contracts that broke the bank (think SAP, Oracle, Microsoft).
Churn hurts. Churn even kills. Don’t let churn ruin your business because you didn’t invest in CX from the get-go.
That’s why your investors can’t save you. Only you and your leadership, and, may I say, CUSTOMERS, can save you today.
Here are some other helpful tips to make the most of the resources you have to stay relevant and to survive and thrive in the B2B world:
To increase your odds of staying relevant in B2B:
Play the long game and invest in product-led growth and a seamless customer experience
Build a culture that a) refuses to accept churn as cost of doing business b) where every employee knows the moment(s) they own in the Client journey and the impact it has on CX
Implement a Customer Lifecycle Management plan for all clients in year 2 and beyond (recurring revenue)
- Root your growth strategy in revenue expansion and customer education vs a heavy focus on new customer acquisition
- While most B2B SaaS companies scramble to grow and acquire new customers…
- The SMART ones are LASER focused on GROWING the clients they have.
- So think twice before you neglect your existing customer base, or they’ll neglect you.
- They are the UNTAPPED GOLDMINE of revenue you’re looking for.
- How you scale matters. (New vs existing)
- Conventional wisdom in Leadership tends to hurt B2B SaaS companies more than it helps.
- Today Buyers hold vendors accountable by renewing or canceling their subscription for your product or service
Will you allow CHURN to be a Major Pain in your business?
Written by Aaron Cowell on 11/12/18
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