Keeping your churn rate low is something that every SaaS company strives for. But it’s not always easy to achieve and maintain. Even the most successful companies will experience a rise in churn rate from time to time. Typically, this is due to a change in market conditions, an update to an existing product, or another external factor that affects customers’ perception of your service. However, there are various ways you can reduce the rate even further. For instance, by integrating new features into your software as part of a separate add-on product or subscription package. Keeping your customers happy while also increasing their value from your service at the same time is tricky, but not impossible. Here are some ways you can add new products to keep your churn rates low.
Retention through product integration
If you already have a successful product, you can increase retention with product integration. Product integration is when you integrate your existing product with a complementary service or product. That way, it becomes easier for customers to use both products in tandem. As a result, customers will feel they are getting more out of your service at no extra cost. This can make them less likely to churn since they’ll see greater value in your service. You can implement product integration in various ways. For instance, by adding a feature that allows customers to export data from your product as a standard format. Then, they can easily import it into a different service. You could also create a joint account that allows customers to access two or more services through a single login. Or, you can integrate your product with other services to increase its functionality and usefulness. Many popular SaaS companies, such as Slack and Trello, have implemented product integration to increase retention. For example, Slack created a feature that allowed users to post tweets from the Slack platform. This helped to increase retention by making it easier for users to share content from within the Slack application.
Increase customer value through a spin-off product
Spin-off products are products that you create to increase the value of your main product. They are usually an additional service or product that complements your existing offering. However, you can also create a standalone product that can stand on its own. This means it has the potential to be a self-sufficient product with its own revenue stream. You can then offer this product to your customers as an add-on that increases the value of their original subscription. An excellent example of a successful spin-off product is Trello’s ‘Beyond the Basics’ package. This was a subscription package that provided extra functionality and features to users who had previously purchased the basic subscription. This allowed Trello to increase the value of their product while still offering a cost-effective service to their customers. You can use a similar approach to increase the value of your product. For example, if your product is designed for salespeople, you could create a spin-off product designed for marketing teams. This would increase the value of your core product for sales teams by making it easier for them to collaborate with marketing teams. It would also increase the value of your product for marketing teams by giving them a greater degree of control and power over their end of the sales process.
Create a fast track to recovery and repair
If you’re dealing with an increase in churn, you may be able to reduce the rate by creating a ‘fast track to recovery and repair’. This is where you offer an additional product or subscription to those customers who are most likely to churn. This should be an add-on that help them overcome any challenges they’re facing with your main product. For example, if you offer a SaaS solution for managing customer support, you could offer a ‘fast track’ to those customers who are struggling to reduce their support workload through your service. This could be a premium service that offers more detailed advice and best practice tips for reducing support time through your product.
When it comes to reducing churn rates and retaining customers, there are no set rules, and there are always ways to improve your current strategy and process. These include adding new products to your software and keeping customers happy by increasing their value. Whether you offer an additional service or product, or create an entirely new product, these will help to keep your customers satisfied and encourage them to stay loyal to your service.