Happy Customers Mean Larger Customers Oct 17, 2016 IT Pro Portal | Amy Downs While it’s always great to win a new customer and the revenue that brings, delivering additional value beyond the initial business need is one of the greatest challenges facing SaaS providers. The promise of SaaS is to provide great flexibility to the customer but that flexibility means that it’s easy for a company to switch providers. Churn, therefore, is a significant issue and SaaS providers need to balance the cost of attracting a new customer against the costs of keeping existing customers happy. It’s clear that customer retention costs less than winning new customers, but SaaS providers sometimes neglect to include the dollar value of second-order revenue that comes from customer recommendations, references and the relationships that can be reignited when product fans move to a different company. Success in SaaS is about the lifetime value of a customer so steps that can be taken to build the relationship beyond the first deal are vital to delivering more value for customers, which ultimately leads to greater revenues.