It’s definitely a red sign for all SaaSWhat 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… 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 retentionWhat 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…. To avoid churnWhat 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… 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.
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 UXWhat 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… 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.
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 onboardingWhat 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…. process makes your users feel expertise while using your SaaS and it increases the retention rate and product usage.
It’s clear. A well-onboarded user is a happy user. A happy user is a paying user. - Onboarding also makes SaaS products discoverable and boosts product adoptionWhat is product adoption? Product adoption is the process where an individual learns of a new product and becomes a user of it, learning what it does, how it does…. 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.