3. Offer annual plans
Customers on an annual plan tend to stick around longer than those paying monthly. With an annual plan, customers tend to form deeper relationships with brands. The longer customers have to see the value your service provides, the more likely they’ll stick around.
Companies with more annual subscribers have lower monthly revenue churn.
If you’re not offering an annual plan, then this is the time to review your optimal pricing structure and make changes. With a more targeted pricing plan, you have the ability to attract different customers based on their willingness to pay and their commitment level.
An annual plan also gives customers a clear upgrade path as they evolve, which helps them feel like your service grows alongside their needs.
4. Communicate across all channels
The more interaction you have with customers, the stronger your relationships will be. You’ll be able to check in on how they feel about the customer experience and then provide information on how to overcome their issues with your product. Being able to anticipate and resolve these problems will help you prevent these customers from churning.
Open up multiple communication channels—in-app notifications, email, phone calls—to connect with customers. Having more than one channel gives customers options and tailors your message to their preferred communication method.
5. Send thoughtful recovery emails
A recovery email is a message you send to customers after they’ve canceled, to try and win them back. These emails are an opportunity to remind customers of the value your service provides so they see what they’re missing out on.
While building Retain, our revenue retention tool, we found that recovery emails save up to 77% of customers contacted through Retain’s dunning processes.
Retain recovery rates.
Including recovery emails in your churn-prevention plan is a surefire way to boost your win-back rates. Dunning emails aren’t just for reminding customers of actions they need to take in their account; they’re also a valuable tool for increasing customer retention.
6. Offer incentives for early renewal.
Customer incentives can help boost your retention rate. Look for ways to offer incentives that retain more of your customer base. Whether it’s offering lower available payments when they’re paid in advance or a lower price for your annual package, existing customers are more likely to renew if they’re offered a deal.
Just make sure you’re offsetting these discounts with expansion revenue. Expansion revenue helps you offset the negative effects of churn by upselling and cross-selling current customers to increase their lifetime value.
Use these strategies to retain more customers and increase your revenue over time. Combine them and test tactics and you’ll be set to reduce churn for your SaaS business.