How to Reduce SaaS Churn?

If you’ve just started to acquire your very first customers in your SaaS business, then churn may not be a big deal for you. But as you get over a thousand customers, churn becomes vital. And gradually it can be a big hurdle in the success of your business.

A high churn rate can put an impact on your company valuation, business growth, and the overall perception of customer satisfaction.

So where does the problem rely on?

High-growth expected SaaS startups think they have figured out every aspect. The path seems clear until churn begins to smack them in the face.

Suddenly, customers begin canceling and leaving at a faster rate than expected. Who is responsible for such flaws? No one will take the blame and that is obvious.

Sales team starts blaming the product team for not delivering whereas product teams blame customer success for not onboarding. Gradually marketing starts to worry about company reputation and growth. This is a common scenario.  

I’ve gone through some survey and what I found is extremely shocking. Here’s the list;

• Bessemer Venture Partners says an acceptable churn rate is in the 5 – 7% range ANNUALLY, depending upon whether you measure customers or revenue.
• Roughly 70% of SaaS companies in their survey had annual churn in the < 10% range, with 75% of those at 5% or under.
• 30% of SaaS providers surveyed have an unacceptable level of churn.

Why do customers leave?

There could be either number of reasons whereas the customer decides to hit that “CANCEL” button, and here are a few of the most common:

They’ve faced a poor customer service experience. That means they might have tried to find help for something and couldn’t get what they wanted.

• They might have had a poor onboarding experience and couldn’t achieve what they were expecting.
• They tried your software and it wasn’t meant for them.
• Your software might cost them a lot

Sometimes there’s no indication that churn is coming as customer cancels without raising any issues. However, there are some signs even before that customer cancels.

Common signs of churn-

• Payment issues: These include late or missing payments; credit card hasn’t been updated, and so on.
• Disengagement with your product: it means the customer doesn’t seem to be engaged with your product. it might include signs like fewer logins, increased bounce rates, etc.
• More complaints: When customers face numerous difficulties or bugs to use your product, they start raising issues and complain against it. This is the biggest sign that your customer is unhappy with your product or services.

Read the main article on Andolasoft Blog.

Why SaaS and How It Impact on Business Growth Rate

Many Industries and business owners trust SaaS (Software as a Service) as a double-edged solution. It presents the ideal solutions to every old aged problem and re-construct the new module of maintenance, adds new challenges in security policies and managing insightful data.

Meanwhile, some other companies are generating more revenues and profits on SaaS solutions with choosing over migrating an existing solution or building their own cloud-based applications. But every industry views the benefits differently and figure out their unique cloud journeys.

Whereas the switching to SaaS ideas is being around it for more than 30 years, the web-based technology started the support after the 2000s.

In today’s scenario, SaaS is an alternative cost-effective IT deployment where the business owners just need to build their own infrastructure or outsource to a professional team.  And the team will configure the software application and maintain it all.

Still, it has lots of questions for business owners whether SaaS is the viable option for them or not. Like;

·        How worthful for Moving the business to SaaS?

·        What possible business advantages at SaaS Module?

·        Or, it just another Business contraction?

Well, let me explain all these above questions. Here you go;

Original Article Source: Why SaaS and How It Impact on Business Growth Rate – Andolasoft Blog

Key Benefits of Outsourcing the SaaS Product Development

Since we started in 2009, we have seen SaaS flourishing particularly in commercial industries.  Also, it is one of the major segments of the cloud market with anticipated growing revenues. It means, Software as a Service is making possible a greater scale of collaboration and helps to get better customer service and speed up the delivering process.

These days, SaaS performing companies are saturating the market with increasing demand and competition of SaaS solutions.

In a statistical example, SaaS initial public offerings (IPOs) have been increased more than double over the past 12 years. And some of the high performing industries are increasing their team and resources with an average of 56% per year.

To stay ahead with the competitors, industries have realized to make product market fit instantly. So, many companies are turning to outsource development team to facilitate them gather market demands in a tilt and cost-effective technique.

Is outsourcing of SaaS development a good idea?

Meanwhile, Software as a Service application is in the mainstream-use between industries today, but at the same time, it is not an easy job. It has need of a strong understanding and awareness of configurability, multi-tenancy, partitioning, security, etc.

Read the full article on Andolasoft Blog.

How SaaS Application Helps Businesses

We live in a world, with full of acronyms and new technology; sometimes it’s hard to keep it all straight. However, Software as a service (SaaS) applications is into the mainstream to make all things settle down.

Still, it requires a strong understanding of multi-tendency, flexible configuration ability, security, partitioning in order to make a powerful and feature-rich application.

What is SaaS?

Software as a service is the distribution model of software and hosted by the third party application provider. With SaaS, a service provider multitude the application at its data center and a consumer can access it via a well-supported device.

SaaS securely delivers software platforms to thousands of customers these days. If you want to take your business to a next level, you need to learn more about this decisive development feature of current times. The Service is the commonly operate for businesses through the cloud system.

 Read more about SaaS Application on AndolaSoft Blog.

Top Reasons Why The Future is SaaS Subscription

The software industry has gone through many changes in the last few years. Software as a Service (SaaS) is booming in this internet age.

SaaS application which is hosted on the vendor server and user or client can access that with a secure connection.

SaaS increases the Monthly Recurring Revenue (MRR) and Customer Lifetime Value (CLV) where lowers the Customer Acquisition Cost (CAC).

"In the future, the direction of SaaS will largely depend on buyer and consumer choice.  Businesses are taking note of buyer behaviour and switching to subscription-based business models.

From a company perspective, the goal is to provide many different applications to satisfy consumer needs and buying behaviours.

The future will also depend on creating an ecosystem that will allow businesses to integrate into a partnership-driven community.

The integrator will be the winner."

- Grant Goodwin, President, AllRoads

Know more insights from Industry Experts and the future of SaaS. 

SaaS business model based on retentions and you can keep your customers paying month over month for a longer period. Retention depends on customer engagement and both are the lifelines of every SaaS business.

According to 2016 SaaS benchmarking survey, let’s have a look at the difference between new customer acquisition cost (CAC) and the cost of upselling to existing customers (per $1 of New Annual Contract Value),

Read Full Article on Andolasoft Blog

How to Increase Sales of SaaS Products

SaaS Market is booming now and SaaS Product has become the medium to reach users of your target market to generate revenue. 

You have done some research and finally built it, which can be customizable according to the user’s requirement with an objective to generate online sales. Having a SaaS application is not the end to generate revenue; you need to market it well.

So now, you might think or you may ask your marketing experts, “How to generate online sales or how can you increase your sales through SaaS product?”

Techniques like, content marketing, email marketing, SEO, link building and viral marketing can helps you to market your product and do so.

Here in this article I would like to share the major tips to increase the sales of your SaaS product, but before that let’s have a quick look at the experts’ advice,

Larry Kim – Founder of Word Stream

I’m really excited about Facebook and Twitter Ads because:

1.       People spend a ridiculous amount of time on social media.

2.       It’s cheaper to advertise on social media than on search.

3.       I can promote my best content and generate trials for my product.

Ben Sardella – Co-founder & CRO at Datanyze

A way to drive new leads and conversions is to deliver value during the visitors’ initial experience. This can come in many forms, but one of the most common is a freemium approach. At Datanyze, we have several freemium tactics:

1. Free premium content – we invest a lot of time and effort delivering know-how from the best people in the space.

2. Market-share data – we have valuable data that we give to researchers.

3. Free browser-plugin – this puts the power of Datanyze into the hands of our typical users for free. It’s not a free trial, but yet a free tool that gives us a bottom up approach to infiltrating a potential customer.

Tom Gorski – Founder at SaaSGenius

In the SaaS industry, users come to making decisions by following specific patterns. Let me explain. It all starts with the Awareness stage, an initial point in which a customer comes in contact with your app. Although he or she wasn’t specifically looking for you, they may have come in contact with your product. The process then moves to Consideration stage in which a user begins to consider whether to actually purchase a specific solution and then, researches what would be the best alternative. This is the stage during which they will research your company, your app’s features but also seek out and read reviews and other social proof. Lastly, they purchase the selected solution. Therefore, it’s important that you get reviews from your users, because they will affect the purchase decision on your potential customers.

(Source: blog.omniconvert.com)

Tips to Increase Sales of SaaS Product

1. Knowledge about product and Market: (Buyer Personas)

As a sales and marketing professional you must have thorough knowledge about your application like the trail period, pricing structure, How to use and who can use, available/upcoming features.

The next thing is that you need to think about the market like who your customers are and why they choose you? How your product will help them and what better you can do in near future?

These things would help you while dealing with customer with your sales pitch focusing selling. 

Read Full Article on Andolasoft Blog

6 Basic & Easy Tips for Never Losing your SaaS Customers

It’s not at all cool to lose customers especially for your SaaS product. You lose customers; you lose money – that’s how straight it is.

If I speak in the language of SaaS (Software as a Service), we term it as Churn rate. A churn rate can be defined as “the annual percentage rate at which customers stop subscribing to a service at a specific time-period.”

Alan Gleeson is a B2B and Tech Marketing Consultant. Based in London. Passion for #SaaS.
Co-Founder of saasresources.com

With lots of research and following SaaS competitor’s activities, you have made your SaaS application for users like me to Sign Up for a particular problem to be solved like a Project Management Tool, Customer Relationship Management Tool, and Helpdesk Management Tool and so on. 

You desperately need users like me to sign up to your app and curved with next steps but you are confused that;

• I am not doing any further actions which can solve both of our problems.
• Why is my conversion rate not the way I had planned!
• Why am I getting so much of ‘Cancel Subscription’ request!

The above are some of the most basic questions that come up to your mind to haunt you every single day.

I am sure you made-up everything which are easier for me to go with your offers like free trials, no credit card info, primary sales CTAs, cool videos and graphics but still I am not active on your app and there is no more improvement in users sign up. Why?

Have you ever think is your app or website providing right information which the SaaS users are looking for?

 “Customer success is simple ensuring that your customers achieve their desired outcome through their interaction with your company. That's it.”

Lincoln Murphy – Customer Success Consultant and Keynote Speaker 

After some research and analysis I found some important reasons why SaaS users are not interacting more and how you can you maximise your SaaS growth. Let’s have a look;

Reasons why users might not be interacting with your SaaS platform;

1.     Data Security Matters for everyone: When it comes to SaaS and cloud storage many of the SaaS users think the safety of their business data. More than 75% Americans don’t trust on cloud storage and they believe their personal data and files are in risk in the cloud.

As a SaaS marketing guy, you need to educate them about the security system and make them sure to purchase through right information, easy to understand content and documentation about security, virus, spam, email management and others.

2.     Recurring Pricing Subscription:  At the initial stage of your SaaS business, some users may not interested to adopt recurring pricing subscription on new products for long-term basis. More than 69% users are not interested in long-term commitment on SaaS plans.

Offer them simple and comfortable pricing packages with options to cancel the subscription at any moment as they please. Make them aware about the benefits of subscription model.

3.     Don’t have time and Knowledge: I am pretty sure not everyone has all the knowledge while adopting a new technology or new stuff and they take some time to adjust to the environment and system - this process kills their time and resource.

In that situation, you need to give an online demo about your SaaS application features and installation. You need to provide complete documentation about the app. Step-by-step video tutorial and eBooks are more helpful to convey users about your product or app. 

Read Full Article on Andolasoft Blog