Want to achieve negative churn? Start here.
Customer Success is the foundation for increasing renewals & decreasing churn
Rapid growth for SaaS businesses is important, not just to scale, but also to demonstrate traction to investors. But as an industry, we are sometimes too insensitive to the massive amount of money invested in customer acquisition. B2B SaaS companies constantly get caught chasing hot new leads and under investing in renewals and customer success.
Which is striking because the renewal is where the profit lies. “Acceptable” churn for a SaaS company is 5-7% annually (more on that here). A 5% monthly churn rate means you are losing about 46% of your customers every year. Which is not only a huge lost opportunity for revenue, but also a wasted investment of dollars spent on acquisition.
What is Negative Churn?
Negative churn is the holy grail of renewable revenue. High churn rates (over 7% a year) kill SaaS companies. If you’re a B2B SaaS company, your Customer Acquisition Costs (CAC) relative to your Life Time Value (LTV) is a key metric for your organization.
Negative churn is what happens when the revenue that your upselling and cross-selling activities are creating outpaces the revenue lost when customers defect. And it can only happen in a company built around a culture of customer success and support.
Setting Customers up for Success
Support is not just about when something breaks. Your customer success and support teams should help you increase renewals, build a better product, and create default growth.
To achieve that, your success and support team members need in-depth knowledge about your customers. They require finger-tip access to every case and interaction your company has had with each customer; in order to onboard, train and retain them.
At CloudKettle, we help build that foundation by integrating your customer support tools like Desk.com, Service Cloud, and Intercom with Salesforce and your own SaaS product. Giving your employees real time access to which customers are at high risk to churn or ready to be upsold.
Build a Better Product
We have years of experience helping B2B SaaS companies gain insights about their customers from their own product’s data with Salesforce. Providing team members and executives with information on what generates customer complaints and churn.
Our goal is to help you see not only what your most common issues are, but more importantly narrow in on which ones are having the largest negative impact on revenue.
We also aim to help you identify what User Interface and Experience weaknesses exist and what features your customers value; to improve your product.
When successful, customer success helps build a better product your consumers happily spend more on every year; adding seats and upgrading tiers.
“We reached out to CloudKettle because our Salesforce instance had been a series of internal patchwork efforts and we needed a major overhaul. It was obvious from our first call that CloudKettle knows what they’re doing. They think about every detail in order to execute and build the most efficient system and workflows possible. Not only can they get in the weeds, but they’ve helped us think strategically to achieve our goals.”
Kylee Hall – VP, Marketing, Skillz Inc.
“CloudKettle’s training and expertise were essential to mapping out a systematic sales process to support WoodsCamp today and as we scale. As a marketplace working in an environment of complex customer relationships that requires simultaneous B2C and B2B sales strategies they committed the extra time to make sure the training and tools fit what we would actually need. It was also really valuable to be working with a team that has actually done it before. Knowing that they have been in trenches of early startup life as founders and have also worked with some of the largest companies, made a huge difference in trusting their advice. After working with CloudKettle I feel like I am standing on a solid foundation to lead our sales process now and I know I’ll be calling on them again as we grow.”
Will Martin – Co-founder, WoodsCamp
“We are at a stage where we need to develop a more strategic marketing and sales strategy that will increases the number of new leads we generate each week, decrease the cost per lead, and increase sales. The CloudKettle team introduced us to the power of integrating a number of marketing and sales tools that will be a game changer for us.”
Darren Piercey – Founder & CEO, CyberPsyc Software Solutions Inc.