Why Do They Leave? How To Prevent Saas Subscription Cancellation
Join the DZone community and get the full member experience.Join For Free
The one word every SaaS merchant hates to see is “unsubscribed”. Unsubscribes are like money going right out the window. People unsubscribe for a variety of reasons:
· No longer have a need for the service (Value)
· Have found another service (Competition)
· Technical issues (Customer service)
Whatever the reason, the main issue is that customers are leaving and your churn rate is increasing. Fortunately, many of the common reasons for unsubscribes can be reduced and kept to a minimum.
A customer telling you they no longer need your service can feel like a slap in the face. It’s essentially someone telling you that your product isn’t good enough for them. The insight gained from customers that unsubscribe because of a perceived lack of value is some of the most valuable data you can receive.
Your application should have some form of tracking and analytics installed to monitor how customers are using your software. The areas you need to focus on are how often they login to use the service, the duration they use the application, and which features they are using. You might be surprised to find out that many customers will unsubscribe for a service because they simply haven’t been using the application to its full capabilities. If a customer thinks that your application doesn’t have a feature that they need but the problem is they just couldn’t find it, you could lose a customer for no reason at all. This is why it’s extremely important to follow up with customers who unsubscribe and find out exactly why they left.
If nothing else, customer input can give you ideas that you can use to improve your application later on so others don’t unsubscribe for the same reason.
Some companies love and thrive on competition, others fear it. When a customer unsubscribes and goes to one of your competitors, it means that they offer something that you don’t. Whether it’s lower pricing, more features, or a larger community, the competition is doing something better than you. Your goal is to find out what that is and address it.
Certain issues like price can be a little more difficult to compete with. You might not want to get into a pricing war to see who can offer their service the cheapest. But when it comes to features and delivering value, you can definitely ramp up your efforts. Examine the features a competitor offers and see if you can offer the same or even better, check your analytics and discover which features – besides the obvious – are used the most and spend more time with those. You might have a hidden gem or a new found niche that can be incredibly successful for your business.
Customer Service & Experience
All the monitoring tools and metrics available, might mask customer service as an easier task than it really is. However, customer service is not only about fixing problems, it’s about anticipating them. In order to fix the problems, you need to monitor certain key metrics such as response time, closed ticket rates, number of reported issues, and of course the number of unsubscribes. Yet, anticipating problems requires using the aforementioned data parameters to discover trends and come up with solutions before your clients frustration level reaches its limits.
Make your customer’s life easier. Every aspect of your service should have the customer in mind. Making payments, submitting help desk tickets, etc. Some companies offer 24 hour support so that customers can have their problems addressed ASAP. Something as basic as having a simple payment process can mean the difference between a high churn rate and satisfied customers.
Think about your customers. They are just as busy as anybody else and probably don´t have the time to contact your support desk to complain. Don’t underestimate any message your get from your clients and if you are getting multiple messages regarding the same issue, don’t delay your public response.
Opinions expressed by DZone contributors are their own.