#saas customer retention best practices to maximize renewals
▻https://hackernoon.com/saas-customer-retention-best-practices-to-maximize-renewals-29397a19f739
In the SaaS world, the customer-acquisition-cost (CAC) is high and the initial payment is peanuts compared to the lifetime value (LTV) of the customer.According to studies, the LTV value should be at least 3 times the CAC in order for your company to grow and be sustainable. That means the customer needs to renew their contract more than once.Without a high customer retention rate, a SaaS company will shut down, no matter how great the other metrics are.You may believe that if the customer does not have any problem, the customer will renew the contract.This is a reactive approach and is NOT true.In this age and especially in the SaaS space, you need to have a proactive approach. Otherwise, customers will churn and you will neither be able to find the reason nor do anything about it.The (...)
#customer-success #customer-engagement #best-practices #customer-retention