SaaS Renewals: 3 Things to Remember to Become Successful
One of the critical areas in managing software as a service (SaaS) for business-to-business (B2B) enterprises is making sure that clients will renew the services that you sold to them. Ideally, every renewal should be an engagement that you should work out and close in as if it were a new sale. It’s only by doing so that you begin to realize the effects of SaaS. It could help you experience rapid growth from a scale’s and traction to a stakeholders’ point of view.
You, however, should not be oblivious of the fact that customer acquisition demands massive investment in the right strategies. With that, you can tell how proper management of SaaS renewals is the key, especially since this is where most of your profit lies. Do you know what will it cost you to realize a successful SaaS renewal rate?
Map Out a Process
You probably have not considered it yet, but mapping a well-thought process is critical when it comes to managing every SaaS renewal. It can help you know when to contact customers and what to cover in that conversation.
Limit Sales Involvement
While sales are important, it’s also important if you limit your participation in sales. Instead, invest more in caring for existing customers on a daily basis.
Integrate this process into your customer relationship management software for seamless and intelligent tracking of every SaaS renewal. SaaS management experts advise that you should not settle for a churn rate of less than 5%. Doing so will mean that you might lose about 46% of customers annually. That will be a loss of revenue as well as wasted capital in customer acquisition if you don’t take this seriously.
It’s understandable that managing SaaS renewals, especially for B2B products, can be challenging. With the help of an expert, however, you better keep a smart check with better training and enhanced user experience.