It is not uncommon for users of a Saas to churn or cancel their subscription. There are many reasons why one churns. Some of these reasons can be attributed to design and user experience (UX). Using data to tactically make changes to design and UX features a Saas can often reduce churn. Additionally, the design and UX updates can help Saas owners gain a better understanding of their users, what keeps them around, and what compels them to leave.
In an effort to reduce churn with design and UX, Saas owners can take some action. We will discuss the design and user experience principles that can help reduce churn. Finally, we will explain how to implement and test these changes to realize churn reduction.
There are several principles a Saas can implement in their design and user experience to reduce churn. This is not a comprehensive list, but a few primary processes to rely upon when designing to affect how long a customer remains a subscriber. We will discuss attracting the right customers, communicating functionality, and finally understanding why they chun.
Reducing churn often starts in the sales and marketing aspects of a Saas. When there is a match between a customer and the right Saas, the lifecycle of the relationship tends to last longer. Conversely, attracting the wrong customer tend to result in short customer life cycles.
One of the best ways to discover your ideal customer is by studying and analyzing your current customer base to determine which customers have the highest lifetime value (LTV). Armed with this information you can craft marketing and sales materials to track more of that type of customer. The customers who have a low churn rate.
Raaft has your back! Our service options allow you to poll your customer base. Our analytic options allow you to analyze the data and conclude which customers are ideal.
As a customer churns the prime opportunity to understand why they churned presents itself. At the time of cancellation Saas owners have an opportunity to collect honest feedback. Once you have an understanding of why customers are leaving, you can implement design changes that address those issues and make it more appealing for a customer to stay.
Raaft enables you to request open feedback from your customers. You can customize questions and even require feedback prior to exiting. Letting customers know their feedback is heard and valued is important for their participation in this step.
At some point through the customer’s journey using your product, they will experience an “aha moment”.
An “aha moment” is when the customer deeply understands the core functionality of the Saas and how it can really benefit them. By modifying your design UX, you can highlight and guide customers to having their own “‘aha moment” is a first start utilizing your Saas.
Raaft collects all of your customer analytic data and feedback and shows it to you with insights in a simple dashboard. You’ll know things like:
* Who is considering canceling
* Who has canceled
* Why they’re canceled
* What offers are keeping people around
Collecting and understanding this information is only one piece of the puzzle. It is imperative to implement these learnings to realize the results. After they’ve been implemented, we have to test if your changes are truly affecting the churn rate. Additionally, testing allows us to gain further insight to guide further refinements. Lowering churn, updating design, tweaking the user experience are an iterative processes. Using a tool like raft a savvy Saas owner can stay on top of these metrics and constantly chip away at that pesky churn rate.
A step by step walk tear down on how Hulu handles their cancellation flow from the user perspective.
Understanding the average lifetime value of a customer (LTV) is one of the most important steps in building a successful Saas.
Whether your a well seasoned Saas or you just collected your first dollar, adopting the appropriate accounting method can make or break your company.
With Raaft, you can collect feedback from customers who have used your product and offer them custom responses to keep them around longer. Improve your customer experience and lower churn.