Retention is one of the most important metrics for sustainable growth for What is SaaS? SaaS is the abbreviation of Software as a Service, and refers to a software licensing model based on user subscription with monthly or annually payments. The model… companies. Because the business model of SaaS is on subscription the business model, you have to sell your product every month, not just once. And to make sure that you keep getting payment from your customers each month, you have to make sure that they are using your product and keep getting value from it with every new feature.
As a SaaS marketer myself, I used to read articles a whole day with titles such as “1 Golden Facebook Hack to Increase Your Traffic bt 590%!!” or “This TWO AMAZING SEO HACKS Will Increase Your Organic Traffic by 90% in 20 Days!!” to find some growth hacks. But you know what I’ve learned after years?
Keeping your subscribers have much more effect for your revenue than getting new ones.
Do you want more proof? Alright, don’t mind me, let’s get you some real numbers.
Fact #1 – The top SaaS companies have very high retention rate
Fast-growing companies that are trying to reach product-market fit has 20% 8-week retention rate while the top SaaS companies have around 38%. The difference comes from the well-designed onboarding process in the first week.
(source: Mixpanel’s article What’s A Good What is retention? Retention refers to a customer continuing to use a business’ product or a service and to pay for the said product or service. It is a key… Rate | Topics | Mixpanel)
Fact #2 – Increasing retention boosts your revenue more than user acquisition
There is a great article by Price Intelligently that in a nutshell tells that;
- 1% increase in customer acquisition (by increasing lead volume or What is the conversion rate? Conversion rate is the percentage of visitors that visit your website or landing page and convert. Converting in this context means that the visitor does…) affects your bottom line by 3%.
- 1% improvement in monetization (increasing your ARPU by 1%) affects your bottom line by 13%.
- 1% improvement in your retention (by lowering your gross What is churn? Churn refers to a customer cancelling their subscription to your products or services. It is a common metric among especially SaaS(service as a subscription) businesses. Churn exists… by 1%) affect your bottom line by 7%.
You see, retention can be twice as powerful as customer acquisition and most of the growth hackers solely working on new channels, new advertising hacks, conversion hacks etc.
Solution: Boost your retention with better What is user onboarding? User onboarding is the crucial process that starts from the first login of a new user and ends up in their aha moment, and usually beyond….
With a better onboarding process, you let your users see the core value of your product much quicker. Because the onboarding is a continuous work, you increase product adoption with onboarding every new feature of your SaaS product.
While you are working on your onboarding process, there are a few things you should consider to make it successful. If you need more tips on your onboarding, feel free to check out our blog post: 10 User Onboarding Tips for Ultimate Success – UserGuiding Blog
- Users should be able to reach onboarding guides on-demand
You don’t know when a user needs help. Immediate pop up when a user visit a webpage is generally considered to be a bad thing. Instead, your onboarding should have an option to help users when they need.
- What is User Segmentation User segmentation refers to the practice of dividing users based on common characteristics. This can help businesses in creating more optimized and personalized user experiences. To… & custom attributes
When it comes to user onboarding, one size does not fit all. A user might have a different native language, might have a different traffic source, might be a different type of user in your websites with different permissions.
Your onboarding flows should be different and each should work for the corresponding segment of users.
How can you improve something if you don’t count it? For SaaS products, onboarding guides’ completion rates give you a great insight to see the effect of the onboarding process, and where you still have room to make improvements for your What is UX? UX is the abbreviation of User Experience and refers to an individual’s thoughts and feelings when using a specific product or a service. It aims to heal….
Don’t you believe me? Schedule a demo with us, and let’s discuss how UserGuiding (a budget friendly Walkme alternative) can help your company improve UX without any coding.