21st Nov, 2017
, , Designation
‘Cloud’ is no more a buzzword these days. In fact, this has become the most practical example of diminishing boundaries between virtual and reality. In this entire technology era, the transition from the legacy to cloud has been a major cornerstone.
However, this transition has also made it extremely critical for the sales teams to retain as well as expand the market pie. Amongst the cloud services , for instance, customer retention is still easier to maintain for PaaS & IaaS models, however, for SaaS model, it’s a different story altogether owing to its subscription-based nature.
Sustenance, consistency or you can count it under Renewals – that is what defines the business model here. And then, retention vs acquisition is not a new equation as everyone is aware of the dynamics of both these. Above all, the competition is stiff in this segment.
Now how to ensure that you cut through the competition? Let’s rephrase it better – How to ensure that your Renewals Strategy is extremely effective? If you’ll ask that there’s any well-established mantra to achieve the same – well, the answer is Yes and No. Read on further to know how.
While there are certain set parameters to be ensured, the cake is yours to be customized!
See if your current strategy includes the following 5 action points:
Analyze Engagement and Ensure Utility Quotient
The biggest churn driver for SaaS is lack of utility. If a customer is not actively using your software/ realizing measurable value of the same, they are definitely not going to keep paying for it. However, if a customer regularly uses the product that they have signed-up for, it is going to be much easier to keep renewing their business. These days, companies use account managements tools which picks out the un-used services and there goes the renewal chances for them.
Enhance the Existing Features
There might be times when some features of your SaaS product become redundant while a need is being generated for an up-levelled requirement. Enhancing the quality of those popular features, basis your analytics calculations, might make customers more dependent on those specific functionalities and thus, they’ll be more likely to renew the subscription.
Let Go of the Control
Are you keeping some scope of agility for your customers to work around your solution? It’s an experiential matter that providing customers with some self-service tools over their services will lead to better engagement and may even act as a differentiator pushing your renewals. That ways, you’ll limit some amount of hand-holding and allow the customer to maneuver on his own – thus upping the convenience quotient.
Acting on the Customer Feedback
Why not use your most valuable resources to make your products even better? You should definitely keep surveying and taking feedbacks from your customer base about the good, bad and ugly or so to say – the improvement scopes etc. This might help you tailor your SaaS business solutions as per the current customers’ needs and will help to attract even more customers who probably have the same requirements and priorities as your existing ones.
Apart from these, what are the other tactics or critical aspects which one must consider for ensuring the most impactful and conversion-driven renewal strategy? Share your thoughts and insights with us in the comments section below.