As a SaaS company, do you allow customers to pause their account?

You should.

This is a Customer Satisfaction lesson we should all take away from Slack and Stewart Butterfield.

  • A pause is better than a cancel.
  • A downgrade is better than a cancel.
  • Not charging customers for more than they need, at least below the Site License level, is better than a perpetually frustrated customer.
  • A positive customer experience, even a customer that leaves, is a new brand ambassador for your product. You need a lot of these to win.

Beyond that, you need to take a long view. The 7–10+ year view.

In a recurring revenue model, a customer that churns is a customer you never really had at all.

But a customer than pauses, and comes back later (or downgrades, but upgrades again later) … is just a customer with a somewhat lower CLTV.

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Published on March 20, 2017

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