Could Someone Give me Advise on Improving Customer Retention Rates in SaaS Companies?

lizaclarraa Member Posts: 3 Navigator
First Comment Photogenic

Hello there,

I am reaching out to tap into the collective wisdom of this forum regarding strategies for improving customer retention rates in SaaS companies. Our company has been facing challenges in this area; and we are keen to implement; effective solutions to ensure long-term customer loyalty and reduce churn.

We have developed a comprehensive onboarding process to ensure new customers understand how to use our product; effectively from the start. Despite this; we notice a drop off in engagement after the initial few weeks.

Our support team is responsive and well trained. We offer various channels for support; including live chat; email; and a knowledge base. Although; we still receive feedback about unresolved issues and slow response times.

We regularly update our product and communicate these updates to our customers through newsletters and in app notifications. Still; we sometimes get feedback that customers feel disconnected from our products evolution.

We actively seek feedback through surveys and direct communication. Despite our efforts; we struggle to implement changes; quickly enough to satisfy our customers needs.

Given these efforts; we are looking for additional insights and ;proven practices that have worked for other SaaS companies.

Also; I have gone thorough this post; which definitely helped me out a lot.

Effective methods for maintaining customer engagement beyond the initial onboarding period.
Best practices for enhancing customer support experiences and reducing resolution times.
Strategies for keeping customers informed and involved with product updates and developments.

Thank you in advance for your help and assistance.


  • Ed Powers
    Ed Powers Member Posts: 186 Expert
    Photogenic 5 Insightfuls First Anniversary 5 Likes

    Hi @lizaclarraa — I consult with companies on how to solve their churn problems, and below is the approach I highly recommend for everyone. It's Six Sigma, the world's most popular method for systematically improving results. It's widely used in manufacturing, service, health care, education, and government, but surprisingly rare in the technology industry. At its heart lies the DMAIC improvement cycle:

    Define - What problem are you trying to solve (in this case, account retention)? What are the economics? Why is this a priority? Why now? Who is your executive sponsor? Who is on the team? What are the major milestones? These are all documented in a 1-page project charter.

    Measure - What KPIs will be affected? What are the current baselines? What is your improvement goal? This critical step is almost always overlooked, but if you don't know where you are, you can't measure your improvement.

    Analyze - What's the process? What's causing the problem? How do you know? Here you collect data from customers on the reasons why they decided to cancel and why others decided to renew and buy more. A cross-functional team then defines or maps the process outside-in, from the customer's perspective and linked to your internal workflows. Once the team has a shared understanding, they brainstorm causal hypotheses (e.g., "5 Why"), and data are collected and analyzed to verify or reject the theories. The team arrives, through evidence, at the true causes, and then the solutions become self-evident. The team develops the plan and obtains internal approvals and investment to proceed.

    Improve- Develop and deploy the changes, typically pilot testing on a small scale before executing a wider rollout. Measure the new results compared to the baseline(s). Manage the people side of change. Iterate as needed.

    Control - Hold the gains by standardizing the process and optimizing results. Plan the next improvement cycle to address any remaining gaps between actual performance and goals.

    Six Sigma ensures you address the underlying causes instead of just the symptoms, thereby producing dramatic and sustainable results. And because you can show before/after, it proves your impact — and it looks great on a resume, too! Top-performing companies make Six Sigma an organizational habit, and many studies have shown those that do outperform their rivals by a factor of 2 (revenue, profitability, valuation, and growth).

    Executing this process with my SaaS and MSP clients over the past ten years has consistently delivered improvements between 30-50% in churn reduction and installed base growth. While the practice universally works, the solutions are unique in each case.

    I hope that helps. Happy to talk more any time.