Editor’s note: the following was written by a guest blogger. If you have product management/tech industry experience, and would like to contribute to the blog, please contact [email protected]
If you’re a subscription business, you must be aware of the concept of customer churn. As much as you detest it, it’s a part of the SaaS business models. Whether you’re a wireless carrier, insurance company, gym, or online streaming service provider, churn plagues every SaaS industry.
The best approach is to give as much attention to the strategies of customer retention as you give to customer prospecting. After all, signing up for a subscription is as easy as logging out from the same for a customer.
However, what do you do about the customers who have already canceled their subscription and left your business? While their unsubscription seems to be the end, their decision is not set in stone. All customers want is the best fit for themselves. While they may have discontinued your services, it, in no way, means you can’t win them back.
Here are the top strategies to learn how you can win back your customers for your subscription business. Tune in!
5 Ways to Win Back Lost Customer for Your SaaS Business
1. Find Out the Reason Why They Left
Your first step should be figuring out the reason why your customers discontinued their subscription. If you get to the bottom of the issue and come up with a particular reason behind their actions, it’s half the battle won.
There are a couple of ways to find out the reason –
- Create a pop-up form, or a dialogue box right that appears when customers cancel their subscription. The form should directly address their departure and ask the reason behind it. You can mention the potential reasons or ask the customer to provide one themself.
- In case you need a detailed overview of the reason, you can send a short survey with the targeted questions via email. While at it, ask what you can do to get them back to your subscribers’ list.
- Assess the insights of the user data available to you. Go to the analytics dashboard of your services and analyze the habits of past users. See if you can find any pattern and reach a conclusion.
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2. Acknowledge and Improve the Problem
Now that you know why the customer is leaving, it’s time to make an effort and take full responsibility for their problems.
A majority of customers discontinue the services from a SaaS business due to poor customer service. If that’s the case with your business, address the specific issue in your customer services and take immediate actions to rectify the problem.
When you work towards correcting the problem for your customers, they take it as a positive sign. They feel important and valued, and get to know that you’re willing to take action to improve their services.
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3. Implement an Email Winback Campaign
To retain the customers back, you need to implement a win-back campaign. Analyzing your business and figuring out what kind of strategies work best for your business is a good idea. However, it’s not enough since you need to care about cost and returns too. Hence, adopt a win-back campaign that’s the most profitable.
Emails are one of the most cost-effective ways to run a win-back email campaign. Wondering what is one? Win-back email campaigns are particularly designed to get past subscribers back into the business.
There are a variety of ways for how you can do it. For instance, if someone left your business because of high prices, you can send a promo code that offers a discount for re-subscribing. Whatever the reason is, the key to win-back emails is quality and persuasive content.
Here are a few tips on how you can create a brilliant email win-back campaign-
- Grabbing attention is vital to get the customer to open the email. Use clever and unique subject lines. If humor goes with your brand voice, it is an impactful way to increase the email open rate.
- Create a sense of urgency through your copy. Offer a code valid for a limited time or a discount while communicating that you’ve updated your ways.
- Educate the customers that you have solved the issues and give them the reasons to come back by reminding them what they’re missing out on.
- Lure them with a seasonal campaign. Blue Apron mentioned in their email how they have introduced new ingredients and dishes as the season changed and asked customers to try new recipes.
Whatever way you choose, remember to try multiple times if you don’t succeed at first. A strategy that has multiple touchpoints can also deliver results at retention.
4. Provide the Customers With a Reason to Come Back
Every customer is different. Hence, not all of them will be convinced to resubscribe to your business through value-offering strategies. Some of them are going to need an incentive to come back. Hence, give your strayed customers a reason to subscribe again.
Enticing people with a good deal is always helpful. So, go ahead and launch discounts or coupons to give your inactive customers a special incentive. For example, send a text message like “Come back and receive [promotion details]”, or “We Miss You. Come in this week for 25% off on your two months’ subscription”.
However, do not use this strategy right in the beginning or for every customer. It should be your last resort for the customers who are unresponsive to every other win-back technique.
5. Use Social Media for Retargeting
Businesses generally use social media for customer acquisition. However, social media win-back campaigns have higher success rates than acquisition campaigns for two reasons –
- Your audience is your past customers, and they already know you.
- You don’t need to fight for brand awareness.
Since social media is an informal space, customers are more likely to be open about their feedback. Begin by addressing common complaints and make amends. Launch a social media ad campaign by creating a win-back promo code. Remember to build a custom audience that comprises only of your former subscribers.
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Growing a SaaS business is hard. Therefore, adopt a brand-new approach to win back your customer to not fall prey to churn. Look at unsubscribers as customers even when they walk out of your door and spring back on the revenue bar.
Also, do not mistake win-back strategies to be a one-time effort. Churn is common in SaaS models and hence, always be ready with your strategies to get your subscribers back. If consistently doing so is difficult for you, hire a leadership development company that can take over your duties.
About the Author
Gravy Solutions, a market leader in accelerating subscription-based businesses, can deploy innovative win-back methods to keep your retention rate high. Reach out to us now to decrease your churn rate and grow your business sustainably.