The churn rate is the percentage rate at which customers stop using company products or services. In many cases, what makes customers decide to stop using your product or service is beyond their control. Like they said, "It's not you, it's me." However, when customers are disappointed with your service, you can and definitely should do something about it.
For companies that provide software as a service (SaaS), messaging plays a pivotal role, and live chat platforms can be an important resource to help reduce customer churn. Not only can live chat attract potential customers at the top of the sales channel, but it can also help nurture and retain customers by staying connected and building loyalty from the time users interact with your website.
SaaS companies can use live chat platforms to reduce customer churn in three ways
1. Re-engage customers with automatic messaging
One of the most common reasons customers stop using products is disengagement. Although some customers may suddenly decide to withdraw from your service, it often happens that they gradually lose contact.
User activity is a key indicator of future problems-customers who do not use your product are likely to lose interest and risk escape. Therefore, it is important to pay close attention to the activities, get feedback and keep the communication active.
Communicating with customers is key: this is the most effective way to maintain customer interest and engagement. This is where messaging automation plays an important role.
Automated workflows can help you set up timed messages to the right people at the right time to prevent potential customers from going offline and losing contact with customers. It's important to segment your audience and choose the right message to deliver to re-engage inactive customers.
When adding links to web pages on emails and messages, you can use live chat to personalize the prompts for automatic messages. Give your customers tailored information and invite them to talk to you. Messages such as "We miss you!" Or "Good to see you!" Can greatly increase customer appreciation and help you re-engage them.
2. Integrate live chat into your SaaS application
You'll notice that there are chat bubbles in the corners of countless websites so that visitors can contact them when they encounter problems (yes, there is one here too!) But why are there no more chat widgets in SaaS products?
It's time to make SaaS companies realize the true potential of instant messaging. Get customer support directly from its application products and facilitate communication through live chat.
Integrating live chat in your application means that your users can immediately contact you when they encounter problems for potential immediate help. Getting help in real time is the way forward to provide a great user experience and maximize customer support.
Enabling instant messaging through the app allows SaaS companies to resolve issues faster and provide customers with more reasons to insist.
3. Track customer satisfaction
The key steps to reducing customer churn are tracking customer satisfaction and collecting feedback on a regular basis. Feedback is an important resource for measuring satisfaction and improving customer churn.
Customer surveys are very useful for the insights your organization needs. Identify disappointed customers and respond to maintain high satisfaction.
Live chat platforms with help desk and customer service capabilities often include satisfaction-based feedback surveys and reports. Making the most of these tools can help you maintain customer satisfaction and reduce customer churn.
The importance of reducing investment churn
The churn rate is directly related to the burning rate, so companies must weigh all factors and compare all costs when considering the impact of churn rates and how to reduce them.
The greater the customer churn rate, the more funds are needed to maintain revenue alone. SaaS companies must balance growth, customer churn, and cash to achieve maximum customer churn.
Overall, SaaS startups can spend more money on customer retention to increase customer churn because retaining existing customers is cheaper than finding new ones.
In addition, investing in a successful client to increase an existing account is a more cost-effective way to reduce churn than to increase spending for a new client.
In considering how much money should be spent on customer churn management, Tomasz Tunguz evaluated the SaaS benchmark and estimated that the company could spend up to 3 months on the value of each customer's contribution to customer churn management.