How to reduce churn in saas thanks to in-app survey?
Customer Feedback
Maria Correa
Apr 3, 2024
If you're running a SaaS business, you know all the nightmares about losing a customer. Churn, the rate at which customers cancel their subscriptions, poses a significant challenge, affecting long-term growth and profitability. The average churn rate for SaaS businesses hovers between 5-7%, meaning for every 100 customers, 5 to 7 will leave each month.
We know you are worried about churn and that’s why we created this article to explore a strategic approach to mitigating churn: power in-app surveys to understand and address customer needs, and ultimately reduce churn rates.
Understanding the Impact of Churn
Churn directly impacts your SaaS business's ability to grow and scale. A monthly churn rate of 5% equates to a 60% annual loss of your customer base. It is also a fact that acquiring a new customer costs 5-10 times more than retaining an existing one, that’s why reducing your churn rate is not just beneficial; it's essential.
The Power of In-App Surveys
In-app surveys are a super tool in the fight against churn. They provide direct feedback from your customers, offering insights into why they might cancel their subscriptions and what improvements could prevent this. This feedback is key for making data-driven decisions to improve your product and customer experience. Below we present five examples of surveys that can help you improve your churn rate!
1. Exit/cancel Surveys
Exit surveys help identify the primary reasons behind account cancellations. This direct feedback is critical for understanding and addressing the underlying causes of churn. The most common question is: What is the main reason you are canceling your account? But you can also ask Why did you decide to cancel your subscription? Or, What made you cancel your account?
Answers range from multiple-choice to open-ended, covering aspects like pricing, technical issues, or the need for specific features. We recommend you to let a free space for users to be more specific in their answers.
2. Surveys for Inactive Customers
Identifying at-risk customers before they cancel is possible by targeting inactive users with surveys. These can help understand the reasons for their inactivity and potential churn, enabling proactive engagement to rekindle their interest.
You can ask directly to your user why they stop using your product and offer them a support. An example for this survey is:
We know it’s been a while since your project was funded. Can you tell us why?
3. Engagement Surveys
Regular engagement surveys assess the overall customer experience and satisfaction. These should be concise, easy to complete, and sent periodically to get continual feedback, keeping your finger on the pulse of your customer base.
You can ask if everything is ok, if they (the users) are missing something or if they want to suggest or improve something. Again, don’t saturate your user asking every time, for this you can choose monthly or per quarter.
4. Net Promoter Score (NPS) Survey
NPS survey fans, here we are! Measure customer loyalty and the likelihood of recommendations to others. A high NPS is often correlated with lower churn rates, making it an essential metric for SaaS businesses.
If you are a constant told reader you know we love NPS, but if you are new, the Net Promoter Score (NPS) is a metric that provides insight into your customers' loyalty with your business. The main characteristic question is: How likely is it that you would recommend us to a friend or colleague?.
5. Customer Satisfaction (CSAT) Survey
Customer Satisfaction Score (CSAT) surveys ask customers to rate their satisfaction with your product or service. This simple yet effective tool can help measure the immediate impact of any changes or improvements made.
It’s usually obtained by asking, "How satisfied were you with [specific aspect]?" The responses are measured on a scale, often from 1 (very unsatisfied) to 5 (very satisfied).
Beyond Surveys: Additional Strategies to Reduce Churn
Continuous product improvement: Regular updates and enhancements based on customer feedback help keep your product competitive and relevant.
Customer loyalty programs: Rewarding loyal customers can increase retention and turn them into brand advocates.
Customer segmentation: Understanding different customer segments allows for different experiences that meet diverse needs.
Customer success management: A dedicated team to help customers achieve their goals with your product enhances satisfaction and loyalty.
Email Marketing: Targeting inactive customers with personalized content can reengage them.
Data-driven decisions: Utilize survey data to make informed improvements and address the specific reasons customers are leaving.
Implementing In-App Surveys with Told
For SaaS businesses looking to implement in-app surveys, at Told.club we offer a no-code solution to save you time and the resource of your engineers. This tool allows you to customize the surveys to fit your brand, automatate the responses based on user answers, and analyze the survey data over time to track improvements and impact.
Conclusion
Reducing churn in SaaS requires a huge understanding of your customers' needs and experiences. In-app surveys are a key and easy tool to make it, providing the direct feedback needed to make informed decisions and improvements. By implementing a strategic approach to in-app surveys, together with additional retention strategies, SaaS businesses can significantly lower their churn rate, ensuring long-term growth and success.
