How do you manage SaaS customers who pay but don't use the product?

It’s definitely a red sign for all SaaS products. Cost for making a paying customer keep paying is much less than acquiring a new customer. You should poke them with e-mails, automated and manual, and try to talk about some features they haven’t used yet, or make suggestions.

Tips to improve retention rate and avoid churn for SaaS products

At the end of the day, it’s all about retention. To avoid churn and keep retention at healthy levels, there are lots of things you can do.

• Make your customers engage with your product, as much as you can.
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• Send weekly reports for each customer, give them a broad report. If your SaaS product isn’t such a service, give them feature updates or blog posts. Feed them something regularly!
• User experience is the key to success for SaaS product retention. Good UX help companies turn visitors into users or into customers and keep your customers paying because it encourages engagement with the tool. Sometimes the purpose is to close the knowledge gap and provide the required skills quickly to the users to make them learn fast and start benefiting the product & service, other times the main goal is to design a platform as familiar as possible to the other existing popular products & services, so that the user will start using it intuitively.
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• Look at the graph by Mixpanel’s article “What’s A Good Retention Rate?” below.

• Paying users tend to keep paying subscription fees for easy to use products. Otherwise, they start to look for other alternatives. A well-designed user onboarding process makes your users feel expertise while using your SaaS and it increases the retention rate and product usage.
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• It’s clear. A well-onboarded user is a happy user. A happy user is a paying user.
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Onboarding also makes SaaS products discoverable and boosts product adoption. Think of all the features your customers are not using, even if they are paying for them. Well designed product tours designed for different segments of your customers will have a great impact to increase product engagement.