Customer success is one of the most overlooked data points in the SaaS industry. When creating software, many businesses only think about how to market their product and get it in the hands of as many businesses as possible.
They don’t think about what they’ll do if those businesses do not like the product. SaaS businesses are missing out on profits and throwing their reputation away for no reason by ignoring customer success.
Chris de Diego has years of experience as a SaaS consultant, where he uses his expertise to help businesses succeed in the industry. We talked to Chris de Diego and asked him to explain why customer success is essential for SaaS businesses, and he gave us a rundown.
It is easier to retain
Retaining existing customers is much easier than getting new customers through the door. Trying to convince a business or individual to pay for a product that they do not know or have experience with can be very difficult, which is why it’s so important to try and retain your current customer base.
According to Chris de Diego, customer success is one of the primary means of retention. If customers like your product and get used to using it, they will stay with it forever. If they do not succeed with your software, they’ll quickly switch somewhere else and never look back.
Losing Customers Loses Profits
This may seem obvious, but just how much money do you lose every time someone drops your service? Let’s say you don’t worry about customer success, create quick software and lock up 100 customers for a year.
After that year, those customers leave, and now you have to restart from 0. Now, Chris de Diego says this may work for a year or two, but how long will it be until you only get 50 customers? How about 20?
Had you just focused on customer success, you would’ve kept at least 90 of those customers and added onto your base every year.
Chris de Diego points out a few reasons to worry about reputation. First of all, he believes that it is just good business to make a good product.
It’s only fair to offer a product and resources to people paying you. Secondly, if your customers like your product, they will refer you to others. They will also leave raving reviews, proven to drive business and grow profits.
Inflation affects everyone, even businesses. This means your prices will have to increase at some point. Even beyond inflation, you may need to raise your prices for another reason.
Maybe your team has become more expensive; perhaps you lowered the price initially to get people through the door. If you’re focused on customer success, then your customers will have no issue with reasonable price increases, and they’ll stick with you and be more valuable as customers.
Chris de Diego gave us some good advice. No one knows the future. What if you want to offer another piece of software under the same umbrella as your first? If you do this, you will need to convince new customers to purchase both or focus on two subsets of customers.
This can be difficult. On the other hand, if you’re focused on customer success from the beginning, your customers will be more than happy to try your new product. Your first one was fantastic; after all, why would your 2nd be any different?
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