After spending hours, days, months and even years creating a robust product, giving away your existing customers to a competitor is an absolute no-no. Name one SaaS-based company that is actually willing to let its customers walk away.
But a high customer churn is no rare phenomenon for SaaS companies. The reason being that the purchase decisions of a typical consumer today are influenced by the information he consumes over the Internet, the experience he has with a particular business and the recommendations he receives from his connections.
While digital opens a whole new market for SaaS companies, it is also increasingly becoming the reason of loss of business for them. Consumers are exposed to more options in the market and the value they can get from them, resulting in lower lifetime values with a business.
It’s safe to say that where there is SaaS, there is a big churn of customers as well!
That’s where client servicing or exceptional customer support steps in.
Why Client Servicing Is Important
Since consumers are looking for value beyond the point of conversion or purchase from a business, client servicing is what ensures they consistently see value in your product. The longer they think your business caters to their changing needs, the less likely they become to explore the other options they have.
This comes from our personal experience.
We, at Wigzo, can boast about not losing our customers. The number one strategy that we make use of is to provide exceptional client servicing and support. When we say we’re there for a customer 24*7, we make sure one of us is around no matter what time and day of the week!
Like any other company in the digital space, we too have competitors and we know that one bad experience of a customer can result in him walking away for good. But that’s not all!
The one bad experience that a customer has with our business reaches twice as many ears in the digital space. Thus, impacting our future sales and influencing the purchase decision of the target market we have introduced our product in.
When your customer support is a no-show, your online reviews tip towards the negative. The more negative reviews you generate, the lesser number of conversions your business bags. In simpler words, you lose your target market and your business growth stagnates or starts to drop.
Don’t believe me?
Well, 78% of consumers bail out from completing a purchase from a business simply because of a bad experience. (source) That’s way more than half your business’s sales!
Even though the importance of client servicing is clearly visible, there are many SaaS companies out there that don’t pay attention to it. The primary reason behind this decision being the misconception that digital is enough.
The truth is, there is a big consumer market that still prefers to get on a call with a business to understand how it can get started with a product or how they can implement it for maximum results. No matter how many help docs you create on your website, that one demo or discussion matters more to them than anything else!
If your business hasn’t been focussing on client servicing, here are a few reasons it should:
Client Servicing Reduces Churn Rate
Now a great marketing team can reach out to your target market, an effective sales team can close deals but it is the client servicing team that determines how many of these customers your business can retain.
Most of the churns are caused because the customer has had a bad experience with your product, couldn’t figure out how to use it effectively or the post sales services weren’t as promised. This automatically makes client servicing the solution.
Great client servicing doesn’t just mean happier customers, but it also lets you show them the full potential of your product.
Here are some facts that will make you rethink not having client servicing in place:
Client Servicing Gets You More Customers
88% of consumers today trust online reviews as much as personal recommendations. It only goes to show how important word-of-mouth promotions are for business growth – both online and offline. The only way to get these recommendations is client servicing.
Client servicing ensures that the customer has fully understood your SaaS product and is making the most out of it. The more value he gets from your product, the happier he is with your business and 48% of such customers recommend the business in their circles. That’s almost 50% more market for your SaaS product!
Increases Business Revenue And Profits
Think of the resources that go into acquiring new users over social media today. You don’t just struggle to get attention, most businesses think getting them to interact is one of their biggest challenges. That’s where client servicing steps in again.
Happier customers stick around the business much longer despite the options available to them. Client servicing boosts the lifetime value of every customer, decreasing the price sensitivity of the consumer as well.
Simply put, customers who are happy with your SaaS product, are willing to pay more for a great service that adds value to them getting you more profits. The recommendations they make in their circles, are like an added bonus for you.
In a time, when a consumer has more options than ever for every need, it is important to focus on building relationships. While getting more sales might matter the most for your business goals, it is vital to keep in mind that retaining an existing customer is always more cost effective than acquiring a new one. If you’re a SaaS company, resource management is primary to you and so is growth.
I think client servicing is a must-have along with marketing and sales for faster business growth at scale. We at Wigzo make sure that each of the customers we acquire, fully understand the potential of our product and how they can use it for the best of results.
From follow-up campaigns to engagement, we make sure that the client never feels he is left to ‘fend for himself’ with our product. This has resulted in high engagement rates, even higher customer lifetime value and definitely more conversions for us.