For any SaaS/cloud software company, particularly in the B2B/enterprise space, a high customer retention rate is one of the strongest metrics indicating a successful and healthy company. As veterans of the cloud know, acquiring new customers is more costly than retaining existing ones. In fact, a Bain & Co. study shows that acquiring a new customer is 6 to 7 times more expensive than retaining a current one. So for any subscription-based, cloud software provider, reducing customer churn and providing the best customer support should be a top priority for strong overall trajectory for the company.
As a SaaS provider, how do you reach and maintain high customer retention rates and other strong metrics? What separates companies that have good retention rates from the ones with GREAT retention rates? At Webdam, I’m proud to say that we are in very rare territory. We’re thrilled to report an unprecedented 99 percent customer retention rate during the third quarter. Webdam is also excited to unveil the new DAMSuccess.com, a redesigned customer community, in our upcoming webinar on November 19 – register today!
So how did we achieve this record-breaking number? Here are five areas that Webdam excels at which contributed to our incredible customer retention strategies.
Establish a culture of customer success across the company
What does it mean to have a culture of customer success? At its core, it means making sure everyone puts the customer first. This means that Marketing should target the right prospects so that Sales can bring in qualified deals. It means the Client Services team focuses on customer happiness every step of the way, from on-boarding to continued support. And of course, a customer success-focused culture requires Product Development to constantly build and enhance valuable features with the customer in mind.
A customer-centric culture also means having no silos across different functional groups. One strategy to achieve this is making strong customer success metrics a priority for across every team at the company.
Deliver Customer Value 24/7
As the saying goes in Silicon Valley, innovate or die. Customer success defined is always thinking of the value your users are taking away from your product. You should never rest on your laurels after achieving high customer retention rates. Stay focused on delivering innovative and exciting products, and continue to publish thought leadership and best practices that will keep customers active and engaged.
Nurture your cheerleaders
Happy customers will always be your best advocates. Nurture them, and you will reap great rewards. Always find ways to incorporate their feedback when developing new products and business strategies, as their perspective is key to any successful organization’s growth.
Engage customers in a meaningful way
Make sure to provide an excellent experience through all phases of the customer lifecycle. Ensure that your customers can collaborate and interact with you directly and have an engaging experience. Invest in a robust community for meaningful engagement and strong two-way conversations with all your customers. As I mentioned earlier, Webdam is investing in our customer relationships and launching a redesigned DAMSuccess.com to provide the best customer support experience for our users very soon.
Also, don’t forget to leverage usage data – it gives you a huge competitive advantage by providing powerful insights into your customer base. Use this data to understand exactly how customers are actually using your product, leading to more proactive conversations with your customer base.
Hire and retain the best customer success ambassadors
At the end of the day, achieving the highest customer retention rate possible means having the best possible customer success team, filled with bright, passionate and personable problem solvers who are laser-focused on customer success. CSMs are the voice of your customers, driving a customer-centric culture across your entire company.
As they say, success breeds success. Having a high customer retention rate is one of your main competitive advantages that will allow you to reach even greater heights as a cloud provider. Keep this critical rate high by employing company-wide initiatives for strong customer retention.
Don’t forget to register for our upcoming webinar on November 19 that will cover the new DAMSuccess.com!
Date: Wednesday, November 19
Time: 10:00 – 11:00 AM PST