SaaS operations must be wrapped with intelligence to keep existing customers happy

Dec 1, 2016

Real Business |

The promise of SaaS is to provide great flexibility to the customer, but that flexibility means 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 cost of how to keep existing customers happy.While it’s always great to win a new customer, delivering additional value beyond the initial business need is one of the greatest challenges facing SaaS providers. 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 – in other words, how to keep existing customers happy.