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Getting the Customer is One Thing - Customer Service Software is What Drives Retention

TMCnews Featured Article


May 12, 2015

Getting the Customer is One Thing - Customer Service Software is What Drives Retention

By Susan J. Campbell, TMCnet Contributing Editor


Solutions available in the cloud are driving demand for access to capabilities smaller companies once believed were out of reach. As such, SaaS (News - Alert) (Software as a Service) providers are enjoying growing opportunities. In the fight to the top of their respective markets, SaaS competitors are trying to clearly define their competitive advantage. For all of them, it has to start with their focus on customer service software.


This concept was explored by Paul Schmidt (News - Alert) in a recent Business2Community post where he highlighted the lifetime value of the customer in relation to the customer acquisition cost. To improve this metric overall, companies must focus on customer acquisition, retention, monetization and segmentation. Fortunately, none of these metrics must be left to chance and SaaS companies can shift the focus in their favor.

First, he advises that companies close the loop on marketing. In doing so, companies can more easily know what channels and initiatives are actually working the best to drive traffic, convert leads and close new customers. Once the loop has been closed, the company can improve the free trial to paid subscription conversion rate by improving the value of the trial. Lead conversion rates are then improved by a series of activities, including multiple offers on the site, A/B testing to track variations, event tracking to understand behaviors and the incorporation of smart content.

Once the prospect is converted into a customer, the importance of customer service software intensifies as customer retention is critical. To succeed, SaaS companies need a lower churn. One of the best ways to fight churn is to understand why it is happening in the first place. Customers on the path for churn often give signals that they are unhappy. SaaS companies with their sights set on keeping their customers understand the signals and leverage their customer service software to jump into action when one of these signals is detected.

Customer service software is also designed to provide insight on the customer so companies know when an upsell opportunity is in the works. The deep insight into the customer relationship allows the company to take action proactively so the customer enjoys a better experience overall. Plus, such actions make the SaaS more than a provider; they become a partner and one that is indispensable to the customer.

Regardless of the industry, the best way to ensure customer retention is to invest in the tools necessary to understand the customer’s needs and respond accordingly. Customer service software provides just the information needed to produce the right results, as long as the company makes acting on it a priority. 










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