Price: Asking customers to pay top dollar for a product, especially if they aren’t experiencing the value to make it worth it can quickly wear thin with decision-makers.
Product: many times, customers purchase a product based on what it can do to make their lives easier. If this product isn’t living up to expectations, or if promised features aren’t being delivered, the customer will churn.
Competition: if you’re a SaaS firm, there will always be someone out there delivering the same thing and if their product becomes too appealing, there is often little you can do to pull them back.
MORE IDEAS FROM 10 Common Reasons Customers Churn – and What to Do About It | ClientSuccess
State of business: sometimes, factors at play internally make it impossible for a customer to continue their vendor relationships. However, this reason cuts just as deep as some of the others.
Lack of value: a wide swath of reasons for customer churn falls under ‘lack of value,’ which, at its core, means that a customer isn’t seeing the promised outcomes from your solution.
Access to leadership: If a customer does not feel like they are the most valued customer at your organization, they will often find a vendor who can provide this access.
CSMs can prevent customer churn by constantly being on the lookout for warning signals and being diligent about proactive engagement. When customers do churn, do diligent follow-up and ask questions to understand better why this termination is occurring.
By tracking why customers churn over time, your team can identify themes and repeating issues that may be contributing to customers leaving and then be proactive in solving them.
Poor experience: Customer churn also relates to their onboarding and implementation experiences. If a customer cites a poor experience, it may be time to re-think your internal customer success strategies.
Need: A customer may find they don’t require your product or services any longer. In this case, it’s helpful to pivot your solution to meet their needs for long-term partnerships better.
No ownership: If a vendor partnership doesn’t have an internal owner at a customer organization, no one can push for a renewal or extension in a contract. In this scenario, the contact will often go dark
Marketing needs to be laser-focused on generating leads that fit your ideal customer profile in order to reduce churn. We do this because it is inevitable that some poor-fit leads will still be generate and passed on to the sales division.
Questions to guide with vetting:
Success and support teams should regularly review the sales team's pre-sales qualification and requirements checklist.
In sales, “Land and Expand” is a strategy to land a customer with a small deal, and then sell into the organization to expand your footprint to more seats, additional departments or more products and services.
Land and expand plays out like this in a SaaS:
In the world of software as a service (SaaS), the distance between the Product team and the Customer Success team may appear to stem from competing priorities.
However, a close-up look reveals that the interests of the two teams are very similar.
Product and CS often fail to work together because of three key issues.
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