Learn how to predict and reduce churn with practical customer training for a B2B SaaS company.
Customer churn or customer attrition is one of the major issues plaguing many B2B SaaS companies. A high churn rate can lead to significant losses in revenue and can become a barrier to acquiring new customers.
Therefore, businesses must find effective strategies to reduce the risk of churn.
One practical approach to reducing customer churn rate is through customer education programs. Studies by SaaS Academy show 90% of entities have witnessed positive returns on their customer education programs.
Another interesting figure suggests that a 7.1% growth in lifetime value is seen for companies with engaging customer education programs. These programs can help customers understand the benefits of customer training and increase their knowledge of the product or service.
In this blog, we will identify some issues that influence customer attrition in the B2B SaaS space. We will also discuss how to reduce churn and enhance customer experience.
The customer churn rate is the percentage of present customers who have stopped using your product/service for a particular duration. This could be a month, quarter, or even a year.
This metric is particularly a guiding star for customer-facing business operations like customer support and business development. The churn rate helps identify specific problem areas.
For example, it can offer insight into why your company is losing customers despite the best efforts of your customer success teams.
Also, due to customer churn, the company loses revenue and the opportunity to acquire new customers due to lower referrals by existing customers. Customer data reveals that long-term customers are more valuable since they can bring in more customers for you.
We should also note that acquiring a new customer costs significantly more than retaining an existing one. This makes customer churn an expensive problem for companies to solve. Hence, keeping an eye on the churn rate is essential.
So, what is the solution to reduce churn?
With proper customer education and better training materials, you can overcome this hurdle. These components are necessary since they are the backbone of customer training programs. You cannot expect to build a robust customer education strategy if you do not have suitable training materials.
Furthermore, your material has to be easy to digest, engaging, and informative for customers, driving your core messages across suitably. So, you should mix up your customer training content with engaging videos, other helpful resources, and guides.
You can use modern technologies like machine learning and AI-based tools to set up a churn prediction model. They can provide predictive insights based on historical data and customer behavior.
Here are some of the probable reasons for customer churn:
However, companies can reduce churn with predictive analytics. It is really helpful for understanding possible churn triggers based on varied data inputs/insights.
Predictive analytics is where analytical tools can forecast gaps leading to customer churn. Companies can gain visibility into historical churn rates and expected future patterns with data analysis. These technologies have been helpful for companies, enabling them to reduce churn and shore up customer training programs.
They can also forecast the likelihood of the customer base or groups most likely to leave the brand. You can, thus, predict churn and chalk out your customer education strategy smoothly.
Furthermore, predictive analytics can calculate customer churn and identify at-risk customers. It allows companies to take proactive steps to retain them. Know your churn rate and back up your customer support team with proper training on the same. This will help them work out their strategies accordingly.
Customer education empowers clients with the knowledge and skills to fully leverage a service/product. This results in higher customer satisfaction and loyalty, thus reducing churn.
Once customers know how to get the best out of your offerings, they will have fewer pain points. This will foster customer loyalty to your brand.
Here are a few reasons why you should focus on customer education to reduce customer churn:
Customer training and education speed up the customer onboarding process. This reduces the time to value, which is the time it takes for the customer to get the desired outcome.
A customer education program will help you achieve your business objectives in many ways. It can offer knowledge and vital resources for clients, which will help them use your service or product easily. It will contribute towards superior onboarding at the outset and can reduce churn in the long run.
Besides customers, SaaS professionals can also use the service/product for better business performance and outcomes.
Customer education programs can update customers about your product/service and positively influence its adoption. The program will promote better access to SaaS products and services by educating the customers on how to implement the product and succeed effectively.
For example, it can provide a daily tip or a new feature. It may also offer a webinar, a learning program, videos, etc. Some other options include advanced strategies, blogs, and more.
A customer education program can also answer the customers' common queries. This further simplifies and improves product adoption and helps in preventing customer churn.
The Net Promoter Score (NPS) measures customer loyalty or experience. NPS tracks customers' satisfaction and happiness index, directly correlating to the churn rate. It is vital for ensuring customer loyalty.
Understanding customer issues is a crucial part of customer training. This means using your customer education program to offer all the insights and tips your customers need to stay happy. If they are happy, then they will remain loyal to the product and become repeat customers. This naturally directly impacts customer satisfaction and helps lower customer churn.
Advancing your customer education program automatically means opportunities to interact and engage with customers like never before. It can provide numerous insights and inputs to help you refine your services or products.
These programs can help your products evolve in sync with your customers. You can use feedback forms and surveys to gather insights. Relevant data from customer forums and communities can also be collected. Encouraging open discussion sessions and asking for customers' ideas on how to improve your business may also prove beneficial.
B2B SaaS companies should, thus, implement more effective customer education and training programs. It will help reduce customer churn considerably while delivering valuable insights into your customers’ minds.
Remember that it is essential to keep customer needs in mind while planning and designing education/training programs. You should focus on improving the customer user experience and providing learning modules. This will make things easier and more enjoyable for customers.
Therefore, agile and suitable customer training is the way forward toward future progress.
If you want scalable omnichannel customer education solutions, you can consider Trainn. It is a video-led platform offering engaging customer education programs to help B2B SaaS companies reduce churn and improve customer retention.
Trainn helps customers get the most out of a company's products or services by providing informative and engaging educational content. This enhances customer satisfaction, loyalty, and advocacy and finally leads to higher revenues and cost reductions over time.
With Trainn's data-driven approach, businesses can predict customer churn and reduce support tickets. They can also build a long-term customer education strategy as a result.
Try Trainn for free today!