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3 Ways for SaaS companies to reduce churn with live chat

Keeping churn rate to an absolute minimum is a priority for businesses in order to achieve and sustain growth. Here’s how a live chat platform can help!

Churn rate is the percentage rate at which customers stop using a company’s product or service. In many cases, the reasons that make customers decide to stop using your product or service are out of your hands. Like they say “it’s not you, it’s me”. But when it’s a matter of customers feeling let down by your service, that’s when you can – and definitely should – do something about it.

For companies that provide software as a service (SaaS), messaging has assumed a pivotal role, and live chat platforms can be a great resource for helping to reduce churn rate. Live chat can not only help at the top of the sales funnel with lead capture, but also help with nurturing and retention by keeping customers connected, building up your users’ loyalty from the moment they engage with you on your website.

Here’s 3 ways you SaaS companies can use a live chat platform to lessen customer churn:

 

1- Re-engage customers with auto messaging

 

One of the most common reasons driving customers to stop using a product is disengagement. While some customers can make a sudden decision to leave your service, what often happens is that they gradually disconnect.

User activity is a key indicator for future problems – customers who aren’t active with your product are most likely losing interest, and they are at risk of slipping away. It’s therefore important to keep an eye on activity, get feedback and keep communication alive.

Talking to your customers is key: it’s the most effective way to keep them interested and engaged. This is where messaging automations play a huge role.

Automation workflows can help you to set timed messages to be delivered to specific people, at the right time, to prevent leads from falling off the radar and customers from losing touch. It’s important to segment your audience and chose the right messages to deliver that can re-engage inactive customers.

When adding links on your emails and messages to your web pages, you can use live chat to prompt auto messages in a personalised way. Greet your customers with a tailored message and invite them to talk to you. Messages like “we missed you!” or “glad to see you back!” can go a long way in showing customers appreciation and help you to re-engage them.

 

2- Integrate live chat into Your SaaS App

 

You will have noticed the numerous websites featuring a little chat bubble stuck in the corner, ready for visitors to reach out if they have a question (yup, there’s one right here too!). But why are there not more chat widgets inside SaaS products?

It’s about time SaaS companies realise the true potential of instant messaging; take customer support to the next level and facilitate communication via live chat, right from their application products.

Integrating live chat in your app means your users can reach out to you at the very instant they encounter a problem, to potentially get instant help. Getting help in real-time is the way forward to provide great user experience and maximise customer support.

Enabling instant communication from the app allows SaaS companies to solve problems quicker, giving customers more reasons to stick around.

 

3- Keep track of customer satisfaction rates

 

A crucial step to reduce churn rate is keeping track of customer satisfaction rates and gather feedback regularly. Feedback is a great resource for gaging satisfaction and improving churn rate.

Customer surveys are incredibly valuable to collate the insights that you need; identify customers expressing disappointment and react to keep satisfaction rates on a high note.

Live chat platforms with help desk and customer service features usually include feedback surveys and reports based on satisfaction rates. Making the most of these tools can help you to keep customers happy and reduce churn rate.

 

The importance of investing to mitigate churn

 

Churn is directly related to burn rate, so when thinking about the impact of churn and how to mitigate it, businesses must put things on the balance and compare all costs.

The greater the churn, the more capital is required for the business to simply maintain revenue. SaaS companies must balance growth, churn and cash for working through maximum viable churn.

In general terms, SaaS startups can afford to invest significantly more in retaining customers to improve churn rates, because retaining existing customers is less expensive than finding new ones. Moreover, investing in customer success to grow existing accounts can be a more cost-effective way to reduce churn than increasing spend for new customer acquisition.

When considering how much it should be spent on managing churn, Tomasz Tunguz has evaluated  SaaS benchmarks and estimates that companies can spend up to 3 months’ worth of contribution per customer on churn management.

Though this can serve as a guideline for many subscription businesses, it will really be down to each company’s variable metrics.

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Get your hands on the latest messaging tools to turn the churn around and retain more customers. Sign up with Ibby today, as one of our early adopters you’ll get started with a 3 month free trial!

 

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Building a strong connection with the Millennial consumer

Proactive and engaging communication with the millennial consumer is key to effectively serve this essential market segment.

Millennials, also known as Generation Y, is the generational cohort born between 1980 and 2000. Set to become the largest demographic by the end of the decade, Millennials recently became the most valuable demographic group across the UK in terms of their “wallet size”.

As the first truly digital generation, millennials’ demands have been shaping the future of business. For brands to establish a strong connection with the coveted audience, it’s important to understand what Millennials want and how they operate. Let’s go through a few considerations:

 

  • Millennials want answers to be online and quick

Regardless of what they are looking for, millennials search for answers online. Tech-savvy as they usually are, they demand a user experience that solves problems fast, and they’re less willing to put up with slow or poor service than older generations. An intuitive, engaging online presence is a must.

Instant messaging tools made available to Millennials are massively appreciated, for their ability to provide instant help and answers to their questions. Hence, live chat might just be the simplest solution to Millennial-proof a website.

Live chat might just be the simplest solution to Millennial-proof a website. Click To Tweet

 

  • Communication ought to be to the point

Having grown up in the era of instant access to information, millennials expect communication to be simple and direct. Corporate robots and ‘salesy’ messages are likely to drive them away.

Companies that are able to approach the audience with an empathetic, human tone will gain an edge.

 

  • An eye for authenticity

Advertising is not an effective way to gain the trust of millennials. In fact, only 1% of the digital natives said that compelling advertising would make them trust a brand more.

Millennials go to blogs, they read customer reviews and inspect reactions on social channels before trusting ads – so the key for brands to capture their attention is to find ways to show authenticity and brand values that align to their own.

 

  • It’s a myth that millennials aren’t brand loyal

It’s historically been a struggle for companies to connect with millennials due to their inherent distrust towards organisations. However, the common belief that millennials aren’t brand loyal is simply not true.

A research conducted by Accenture found that millennials can be exceptionally loyal customers as long as they feel they are treated as valued customers.2 Personalised service that is tailored to their needs proves very effective to ignite brand loyalty in this generation.

The same research found that more than 95% of millennials say they want brands to win them actively – which shows how important it is for businesses to take a proactive approach with their communications.

This is where technologies like live website visitor analytics can prove incredibly useful; as they allow businesses to proactively engage with visitors and prospects while they are online – and make the best of behaviour data to provide a personalised service.

 

A ticket to success

 

Companies looking to grab a piece of the coveted millennial pie will need to find ways to make the best of communication channels to provide a seamless end-to-end experience and deliver a consistently personalised service.

It’s time to throw out the old playbook and make space for new technologies. Innovative and engaging communication tools, combined with direct and strategic messaging can make a world of difference for effectively connecting with this lucrative demographic.

 

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Make your customer experience Millennial-proof!

It’s super easy to get your hands on a multi-channel messaging platform that can help your business to deliver the customer-centric service that Millennial consumers seek. Sound good? Sign up and take Ibby for a spin, you can get started for free!

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