Chop Customer Churn! A webinar for SaaS companies, Sept 2013

© CustomerGauge / Directness BV Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.

Webinar: Chop Customer Churn!How SaaS Businesses can convert Trial Customers into Paying Customers Vive Jaiswal & Mark Dunlap 12 September 2013

© CustomerGauge / Directness BV

Introduction

•  Who this is relevant to: –  Sales/marketing/customer experience

executives in SaaS companies –  SaaS providers who would like to convert free

trial customers into paying customers •  What we will cover:

–  Why do customers defect –  Using Net Promoter® as a metric in SaaS –  How to convert free trials into paid

subscription –  Best practices from real clients

Thomas S Watson, IBM 1921

*Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.


About the hosts…


A word about CustomerGauge…

•  CustomerGauge is the leading real-time Net Promoter® measurement platform.

–  Complete workflow and service recovery system

–  B2b, b2c and b2e solutions –  Automated reporting and digital signage –  Automated, with integrations to CRM

systems including SalesForce.com –  32 languages (reporting system in EN,

DE, ES, FR, NL, CN) •  Launched 2007 •  HQ Amsterdam, global coverage with

partners

A D V E R T I S E M E N T


Why do customers defect?


Lets see again…why do customers defect?


Case Study numbers from Gartner (2004). Assume 2000 customers Revenue = $6000m per year Average Revenue

per Customer = $3m per year

At risk — 55% Decline in wallet

share

Defect — 45%

Poor experience 22%

Positive experience

78%

Complain 2%

Don’t complain

98%

At risk — 34% Issue not resolved

Defect — 28%

Resolved — 38% 440 customers

431 customers

2 customers $7m

194 customers $582m

3 customers $9m

200 customers $711m

9 customers

It’s the customers that don’t complain you need to worry about…

In this assumption improving the customer experience by 1% is worth $60m

At risk — 55% Decline in wallet

share

Defect — 45%

Poor experience 22%

Don’t complain

98%


Net Promoter in a nutshell

•  No more 40 page surveys to a few contacts!

•  Ask everyone a very short survey, two questions

–  “How likely are you to recommend us to a friend or colleague?”

•  Report on Promoters or detractors.

•  One score •  Read customer comments

Download our cartoon guide: http://customergauge.com/tag/nps-comic/


Ask and ye shall receive…

Paying customer

Didn’t convert

7 days left

New signup

•  Collect feedback at sign-up –  Sort the renters from

squatters •  Just before expiry

–  An opportunity to save unhappy customers

–  If you can’t save, learn •  Didn’t convert? Learn why…

–  follow-up, don’t give up •  “Thank you for becoming a

paying customer!”

Tip: optimize this process by automation and real-time feedback analysis


Acting on responses •  Organize and be ready

–  Expect 50% or more of the responses to give comments

–  Read every comment •  Distribute comments around

organization –  Do it centrally or let the teams arrange –  CLOSE THE FEEDBACK LOOP

•  Track open issues and time to close –  Acknowledge with 24 hours –  Let clients know what you will do –  Escalate to board serious issues. –  Report internally on issues

•  Categorize, and deal with issues tactically or strategically

•  Customer R&D – product development

TIP! Incentivize staff to close issues in a short time


Real client example •  Integrated with Salesforce

–  Automated surveying on triggers –  Behind the scene action –  Available to entire organization

•  Hard metrics –  NPS by product –  Time to close –  Close loop ratio

•  Focus on delta, don’t get fixed by the actual score

Download case study: http://customergauge.com/2013/07/verafin-applying-forensic-skills-to-customer-feedback/


In a nutshell…

•  Use a simple metric – NPS is awesome!

•  Its not more work, its time travel •  Get feedback and act •  With great data comes great

responsibility •  Automate the process, focus on

customers •  Communicate regularly and thank

the ones who respond Check out how you can operate a world class NPS program: http://www.slideshare.net/adorrell/webinar-six-ways-to-operate-a-world-class-nps-program-29-aug2013

© CustomerGauge / Directness BV Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.

Thank you!

Like to learn more? Get in touch [email protected] [email protected]

Chop Customer Churn! A webinar for SaaS companies, Sept 2013

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Transcript of Chop Customer Churn! A webinar for SaaS companies, Sept 2013