What should B2B SaaS companies do to ensure the success of their customers and reduce churn?

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JASON LEMKIN

I know this sounds overly simple, but the answer is:

  • Measure it.
  • Set goals to improve it.
  • Pay people to improve it.

Too many start-ups don’t even know their CSAT and NPS. Too many start-ups don’t even visit their customers in person. Too many start-ups don’t know why their customers churned. Too many start-ups don’t proactively talk to their customers.

Set a core company-wide goal. That is a Top 3 goal for the company. Compensate your Customer Success team for hitting the goals specifically, and tie everyone’s overall company-wide success to hitting the goals, too.

Magic will happen.

You can’t turn a -5% a month churn rate company into +20% overnight, and maybe not, ever.

But you can improve/decrease churn 20% or more incredibly quickly if everyone makes it a key goal. And you can keep driving that goal up every quarter.

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Published on March 23, 2017
  • Tom Lay

    Reducing customer churn starts right after the initial sale. Focus on the customer experience and ensure customers recieve the value that they expected through usagage and internal adoption. The first hire after a sales leader should be a person that focuses on customer retention, typically carring a title like Customer Success Leader or similar.

  • Marc Johnson

    Increasingly it starts BEFORE the sale. Especially in B2B, with longer sales cycle – starting customer onboarding before they have become customers aligns you (vendor) and them (customer) around their outcomes. Action: take a bunch of the money you spend on SDRs, put into Customer Success and have them show up earlier in the process. Just a thought

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