RetentionFlow Rescue—Focus on Churn Score Calculation to Prevent Revenue Leaks

The success of the SaaS subscription business market depends on various factors. And these factors relate to each other directly or indirectly. The primary factor is the customer lifecycle which is the complete time period that a customer spends while he is on board. It is pertinent to study customer behaviour as it helps in understanding the reasons behind a customer’s stay or churn.

To monitor customer behaviour, multiple factors are considered. It includes account attributes, activities, event instances, records engagement, etc. Quantifying the customer behaviour helps to provide a better experience and customer satisfaction which eventually means a better SaaS customer retention rate, and the flow of revenue will remain maintained.

Here comes the twist!

When there are so many interlinked factors involved, discrepancies in a single factor can ruin this house of cards—business success.

To keep retention cards intact, SubscriptionFlow has launched its application—RetentionFlow, the customer retention management app for SaaS and subscription businesses.

RetentionFlow – The Customer Retention Management Tool for SaaS

RetentionFlow is designed and developed after an in-depth study of the customer churn, factors affecting the churn rate, and how this churn causes the leaks in the recurring revenue. It helps SaaS and subscription businesses to formulate custom and quantifiable ways to mitigate these churn risks.

In this blog, you are going to read about the factors that play role in churn and how RetentionFlow plays role in preventing this leakage.

Also Read: Lessons to Learn from Churned Customers for Improved Customer Retention

Brand Recognition

Why do subscription businesses take customers retention so seriously? A trite reason is customer acquisition is costlier than customer retention. But it is not all about the cost of acquiring new customers. Old customers recognize your brand. They know the usability of the SaaS product that you offer. And in the SaaS business world, companies who have developed their SaaS product are themselves confused about their targeted market. Even if there is no confusion about the targeted market, it is a taxing task to have an extensive reach out to this potential target market.

However, the existing customers (if satisfied enough) will help in branding. They will not only market your SaaS brand name but might become the brand advocates. And these brand advocates talk about the services and products that they use everywhere. People listen to them, and they start recommending the products and services they are using.  That is how brand recognition leads to brand advocacy.

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RetentionFlow will help you track the customer journey and identify the customers who show good health scores. These customers can be the point of focus to upgrade their category from ‘satisfied customers’ to ‘brand advocates.’

The Balance between Acquisition & Subscription Cancellation

In the SaaS subscription business market, the balance between customer acquisition and subscription cancellation can be lethal. A company operating on the subscription billing model cannot be satisfied if it is getting new customers, however, the existing ones are leaving with the same speed. It is more like having a speedy flow of revenue, yet not fixing the revenue leaks.

So, here you thrive to achieve the imbalance, and RetentionFlow will help you achieve it. Your customer retention rate ought to be dramatically more than the customer acquisition rate. If you are increasing the acquisition rate, never compromise the customer retention rate. This imbalance guarantees the success of the SaaS subscription business. RetentionFlow (a customer retention management platform) plays role in SaaS retention strategies in a way that with this software you can monitor the performance of the entire customer base and maximise customer retention—creating the imbalance by dramatically increasing the customer retention rate.

Also Read: Maximize Customer Acquisition & Revenue Generation with Gift Subscriptions

Preventing the Revenue Leaks

Till here, in our story, we have kept our focus on the churn and told you how the RetentionFlow application launched by SubscriptionFlow will retain your customers. Now, we are moving one step forward. This application will also prevent revenue leaks because customer churn means revenue leakage. If you limit churn rate, you limit revenue leaks.

Churn can be voluntary (customers willingly leave) or involuntary (customers leave because of some technical issue). You as a SaaS business company need to comprehend customer churn is not just about the cancellation of subscriptions by a subscriber. Churn’s shock waves are felt beyond the customer base expansion or shrinking.

If retention of SaaS customers is achieved to a certain level, the health of the overall business improves. You can now think about scaling the business and taking it to the next level. A satisfactory business growth allows you to enter new markets and explore new horizons.

With revenue, there are associated revenue operations (RevOps) where sales and marketing teams are also held accountable for the revenue growth or revenue leaks. Customer success and customer retention are the backbones of streamlined RevOps. When these RevOps are all streamlined, SaaS businesses are in the position to compete with sharks in the market.

Also Read: The Role of Customer Success in the Subscription Business and How to Embrace It to Excel?

RetentionFlow—Your Gateway to Quantify Data-Driven Retention Strategy

RetentionFlow is the application that monitors customer journey so that customers stay on board, SalesOps and RevOps remain streamlined, and a lot more. This application will complete your tech stack. Through RetentionFlow, SaaS subscription companies can set factors that somehow affect the churn score. The system will monitor the performance of these factors and on the basis of these factors, a churn score will be calculated showing the probability of the customer leaving or staying on board.

You get informed timely about the behaviour of your customers. When the churn score indicates the risk situation, you can devise a strategy to keep your customers on board. The best and the quick way is to offer lucrative advantages that the customer cannot resist. If this tactic works, work on your strategy to prolong the customer lifecycle.

Conclusion

By now, it would surely be clear to you that customer retention seems to be a single strategic process, but in reality, it is multi-tiered. It is interlinked with many other business processes that define the health of a business. That’s the reason SaaS subscription businesses are so concerned about churn rates. Probably, the customers who leave are not worrisome for SaaS businesses rather this leakage of customers is a bad omen. It shows that now a domino effect will be created because of these customers. However, team SubscriptionFlow has come up with the most effective solution to the problem of customer churn—RetentionFlow.