BlogmyQuery – BMQ

Customer churn is a pivotal metric in the SaaS industry, with the average churn rate for SaaS companies estimated to hover around 13% annually. This figure clearly shows the customer retention challenge many businesses face. High churn rates can significantly impede growth by undercutting the potential lifetime value of customers and inflating customer acquisition costs.

Since a considerable portion of customer churn occurs within the first few months of acquisition, swift and comprehensive onboarding processes can be a decisive factor in mitigating early-stage churn. Educating customers about a product’s features and benefits early on is essential in demonstrating value and forming a solid foundation for customer loyalty.

This article discusses how rapid and effective onboarding can help you battle against customer churn for your SaaS business. Let’s dive in!

Understanding SaaS Churn

SaaS churn refers to the rate at which a software-as-a-service (SaaS) company loses subscribers or revenue due to cancellations or non-renewals. Churn is a critical metric as it directly impacts a company’s recurring revenue and growth potential.

Key metrics to measure churn include customer churn rate, revenue churn rate, and lifetime value (LTV). The customer churn rate is calculated by dividing the number of customers lost during a period by the total number of customers at the start of that period. The revenue churn rate considers the monthly recurring revenue (MRR) lost from those customers.

High churn rates in SaaS businesses are often due to several common reasons:

1. Poor customer fit, leading to dissatisfaction with the product.
2. Insufficient customer onboarding, resulting in a lack of understanding of the product’s full capabilities.
3. Lack of perceived value, where users don’t believe the software meets their needs or justifies its cost.

The Role of Customer Onboarding in Reducing Churn

Customer onboarding is a first defense against churn. It is the process by which new users are introduced and acclimated to a SaaS platform. A solid onboarding process can significantly impact customer retention. When customers understand the value of the product and how to use it effectively, they are less likely to churn. Through a series of strategic training and support steps, users become proficient in navigating the software, leading to a higher likelihood of continued use.

Here are some key elements of customer onboarding in reducing churn: 

• Quick Time-to-Value: Customers should be able to reach their “Aha!” moment swiftly when they recognize the product’s value to their needs.
• Personalized Experiences: Tailoring the onboarding experience based on customer segments ensures relevance and engagement.
• Education and Support: Offering robust resources and help options can prevent frustration and abandonment.

To decrease SaaS churn, companies must invest in an onboarding approach that emphasizes rapid value delivery, user education, and ongoing support. This breeds customer confidence in the product, fostering a committed user base less prone to churn.

5 Strategies for Fast and Effective Customer Onboarding

1. Simplify the Sign-Up Process

To reduce churn in a SaaS business effectively; one must first streamline the account creation experience. A complicated sign-up can be a major deterrent for potential users. Businesses should aim to minimize the number of steps required to create an account, thus reducing entry barriers for new users.

Best Practices for Streamlining Account Creation involves:

• Reduce Form Fields: Only ask for essential information. For example, if a service doesn’t require a physical address for operation, omit that field.
• Single Sign-On (SSO) Options: Integrate with Google, Facebook, or other widely-used platforms to allow users a one-click sign-up.
• Guided Setup: Incorporate a step-by-step guide or wizard to assist new users through the setup, making the task seem less overwhelming.

Slack’s onboarding process starts from its homepage, highlighting the app’s value proposition and leading users through a streamlined sign-up process that captures only essential information.

The onboarding flow includes a welcome screen that reiterates the value proposition and a survey to personalize the user experience further. 

The focus is on quickly getting users to start deriving value from the tool?.

2. Personalize the Onboarding Experience

Personalization is crucial in creating an engaging onboarding experience. SaaS companies often see a sharp decrease in churn rates when they treat users as individuals with unique roles, behaviors, and needs.

You can start by segmenting users based on their behavior or role. This practice allows you to tailor your onboarding process to meet the specific needs of different user groups. Customizing onboarding content and pace is another significant step. You might create role-specific tutorial videos or offer interactive walkthroughs that adapt to your user’s progress. Content can be paced to avoid overwhelming users, gently nudging them towards proficiency with the software.

Notion, a project management tool, gathers key data about the user right from the start, allowing for a branched onboarding experience tailored to the user’s needs. 

This includes showing a checklist within Notion itself, which helps users quickly understand the tool’s purpose and start using it effectively?. 

Here are some strategies for personalizing your onboarding process:

• Role-Based Paths: Develop dedicated onboarding pathways for each user role.
• Adaptive Learning: Employ algorithms to adjust the onboarding flow based on how quickly a user is learning.
• Feedback Loops: Integrate opportunities for users to provide feedback via survey tools, enabling further onboarding refinement.

By embracing these personalization strategies, SaaS providers can foster a sense of value and investment in their product from day one, significantly reducing the overall churn rate.

3. Implement a Guided Tour

Implementing an interactive guided tour is key for customer onboarding. Interactive walkthroughs serve as a step-by-step guide, unveiling product features in a controlled, hands-on environment.

Best practices suggest that a guided tour should be:

• Intuitive: Don’t overwhelm users. Start with the basics and advance progressively.
• Engaging: Use tooltips, hotspots, and modals to interact with users.
• Relevant: Customize the experience based on user roles or actions.
• Accessible: Allow users to revisit the tour if needed.

A real-world example of a successful guided tour implementation comes from the video recording tool Loom. Loom enhances its product tours with in-app video tutorials, providing contextual guidance and helping users understand how to use the platform effectively. 

Source

By educating users immediately, Loom engages users directly and offers a more dynamic learning environment. 

Here’s a checklist for creating a guided tour:

• Objective: Define what the user should accomplish.
• Content: Outline the steps in the tour.
• Tools: Select software for creating the walkthrough.
• Feedback: Provide a method to collect user responses.

4. Provide Accessible and Comprehensive Support

Offering accessible and comprehensive support is critical in reducing churn for SaaS businesses. This support should be multifaceted, encompassing a variety of channels and resources to accommodate different customer needs and preferences.

Setting up a knowledge base is a foundational step. An effective knowledge base should be easy to navigate and filled with helpful articles, FAQs, and problem-solving guides. By providing self-service resources, customers can find answers quickly without waiting for assistance.

Offering live support through communication channels such as chat, email, and phone ensures that when self-service options are not enough, personalized help is readily available. Live support should be:

• Prompt in response times
• Staffed by knowledgeable agents
• Consistent in the quality of service across all channels

Take Calendly, for example. Calendly maintains a reputation for reliable support by staying in touch with customers primarily through email, supplemented by a thorough learning center and self-service support options. 

Source

5. Leverage Feedback Loops

When it comes to reducing churn in SaaS, establishing effective feedback loops during and after the onboarding process is crucial. By soliciting user feedback, companies can identify areas for improvement and create a more refined onboarding experience that meets customers’ needs. The key is to implement mechanisms that gather feedback at strategic points throughout the customer journey.

During onboarding, it’s beneficial to deploy short, targeted surveys that prompt users for their first impressions. After onboarding, follow-up emails can be used to assess longer-term satisfaction and to identify any ongoing issues or confusion.

Source

Companies can use the insights from these feedback loops to iterate on their onboarding process. It’s important to look at the quantitative data, such as completion rates of onboarding steps, as well as the qualitative feedback from customers gained with the help of a customer service virtual assistant. 

Advanced Techniques for Onboarding and Engagement

Here are some advanced techniques you can employ for your customer onboarding to boost engagement and generate more leads: 

Gamification Elements: 

Source

These elements boost user motivation through rewards for achieving milestones. One example is awarding badges for completing profile setup or reaching certain usage thresholds, transforming mundane tasks into an engaging challenge.

AI and Machine Learning: 

Another cutting-edge method is utilizing AI and machine learning to customize onboarding paths. This personalization ensures that users encounter relevant content and features tailored to their needs. For instance, a marketing professional might be guided to features specific to campaign management, while a salesperson would see a different onboarding experience centered on lead tracking and engagement tools.

Building a User Community:

Source

Building a community for new users can foster engagement and customer loyalty. This approach could involve creating exclusive user groups or forums where customers can share tips, provide feedback, and connect with peers. 

These strategies cultivate a proactive onboarding experience, directly contributing to user competence and, subsequently, loyalty.

Measuring the Success of Your Onboarding Efforts

To gauge the efficacy of your SaaS customer onboarding, you need to deploy key performance indicators (KPIs) as your compass. Here are some KPIs that you should consider: 

• Activation rate: It indicates the percentage of users who reach a predefined milestone, revealing if the onboarding process effectively leads to product engagement.
• Time-to-first-value (TTFV): It reflects how quickly users perceive the benefit of the software post-onboarding. A shorter TTFV typically correlates with reduced churn, as users who quickly recognize value are more likely to continue using the service.
• User engagement metrics: Metrics such as feature usage rate and frequency of logins provide tangible evidence of user interest and satisfaction. 

Understanding user behavior and making continual adjustments is critical. Onboarding strategies should pivot based on performance data to foster a dynamic and responsive system.

Mastering Customer Onboarding: The Key to SaaS Churn

Efficient customer onboarding is pivotal in mitigating SaaS churn, acting as a cornerstone for long-term user retention and satisfaction. Successfully addressing customer issues on the first interaction and effectively managing their expectations can lead to a 67% reduction in customer churn.

Thus, by streamlining the sign-up process, personalizing onboarding experiences, engaging users with interactive guides, providing comprehensive support, and leveraging feedback loops, SaaS businesses can significantly reduce churn rates. 

This strategic approach not only fosters a positive initial user experience but also cultivates ongoing engagement, ensuring customers recognize and derive value from the product swiftly, thus laying a solid foundation for sustained growth and success for your SaaS business.

Featured Image by Cova Software on Unsplash

The post How to Reduce SaaS Churn with Fast Customer Onboarding? appeared first on noupe.

Social media has come a long way since its inception, and it’s not slowing down anytime soon. In the year 2022, the number of active social media users increased by 190 million, indicating 4.2% annual growth, with 6 new users joining every second.

With new platforms and features popping up all the time, it can be hard to keep up. But it’s essential to stay informed about the latest trends and platforms, as they can provide new opportunities for businesses and individuals to connect with their audiences and build their online presence. 

In this blog post, we’ll look at some of the most promising social media platforms and trends that are gaining popularity and how they can be leveraged to grow your business. 

So, let’s dive in and explore the future of social media together.

5 Social Media Platforms Marketers Should Watch in 2023

As we all know, social media platforms are constantly changing and evolving. What was popular last year may not be popular this year. That’s why it’s important to always be on the lookout for new and upcoming platforms that could potentially take off. 

TikTok

Source:

This short-form video platform has taken the world by storm, with users spending an average of 52 minutes per day on the app. This is significantly higher than other social media platforms such as Facebook (24 minutes) and Instagram (32 minutes). 

The platform is known for its short-form, user-generated videos and its algorithm-driven feed. TikTok is a great way to reach a younger demographic and build brand awareness through creative and engaging content.

Instagram Reels

Since launching in July 2020, Instagram Reels has been a hit with users and creators alike. Not only is Reels a great way to engage with your audience, but it’s also a powerful marketing tool. Reels are a great way to connect with your followers personally and show them the real you.

Source: 

Reels offer a variety of content types, from quick fixes like tips and tricks videos to longer-form content like behind-the-scenes footage and interviews. There’s something for everyone on Reels, making it the perfect platform for both personal and professional use. 

Clubhouses 

Clubhouse is a newer social media platform that is based on audio-only conversations. The platform has grown in popularity in recent months, and it is a great way for brands to connect with their audience in a more intimate and authentic way. Clubhouse is still in its early stages, but it has the potential to become a dominant tool for marketers in the coming year.

Source: 

Clubhouses allow users to join ‘rooms’ on topics they’re interested in, similar to how one would join a chatroom on other platforms. However, what sets Clubhouses apart is that these rooms are populated by experts on the topic at hand. This makes it a great place to go if you’re looking for a thoughtful and insightful discussion on a variety of topics. 

Twitch

Twitch is a live streaming platform primarily used for gaming content, but it has also been used for other types of content, such as music and art. Twitch has a large and engaged audience, and it is a great way for brands to reach gamers and other niche audiences in real-time. 

Additionally, Twitch has also added new features like watch parties, which further enhance the social experience of the platform. 

Pinterest

Pinterest is a visual discovery platform often used for inspiration and planning. In 2021, the platform reported 459 million monthly active users. 

Source: 

The platform has a large and engaged audience, and it is a great way for brands to showcase their products and services in a visually appealing way. Pinterest is also a great tool for driving traffic to a brand’s website.

6 Social Media Trends for 2023 and Beyond

Here are the top social media trends for 2023 and beyond that are sure to give your brand a leg up over the competition:

User-Generated Content Tops The Chart

Users are becoming more savvy about what they share online and are increasingly likely to trust the content that comes from their peers.

UGC is often seen as more authentic and trustworthy than content created by brands. As a result, it can be highly effective in building brand loyalty and trust. UGC can also be repurposed and shared by brands to increase their reach and engagement. 

For instance, GoPro, the action camera brand, is well-known for its user-generated content campaigns, which feature stunning photos and videos captured by customers using GoPro cameras. 

Source: 

The brand regularly shares this content on its social media channels and website, which helps to showcase the capabilities of its products and inspire others to capture their own adventures.

Social media platforms are also likely to continue to invest in tools and features that make it easier for brands to find, curate, and share UGC.

Youtube Shorts Is On Rise 

Youtube Shorts is a new feature that allows users to create and share short, vertical videos on YouTube. YouTube Shorts crossed 30 billion views per day in 2022. The feature is similar to TikTok, and it is designed to make it easy for users to create and share videos on the platform without needing expensive equipment or editing software.

Source: 

This feature will likely appeal to a wide range of users, from individuals and influencers to brands and publishers. It is expected to be a great way for businesses and creators to create engaging and shareable content that can help to increase reach and engagement. 

Artificial Intelligence Is Ruling

AI is drastically changing how we interact with technology, and it will only become more prevalent in the years to come. Social media platforms are using AI to provide personalized recommendations, improve the overall user experience, and automate various tasks. Some of the ways that AI is being used in social media include the following:

Content curation and personalization: AI algorithms can be used to curate content based on a user’s preferences and behavior and can also be used to personalize the news feed, search results, and other content on a platform.

Image and video recognition: AI can be used to automatically tag and organize images and videos, as well as identify and remove inappropriate content.

Chatbots and virtual assistants: Social media platforms are increasingly using chatbots and virtual assistants such as Microsoft’s Cortana and Amazon’s Alexa powered by AI to provide customer support and answer user questions.

Sentiment analysis: AI can be used to analyze social media posts and comments to identify patterns in user sentiment, which can be used to inform marketing and customer service strategies.

Instagram Creators Are Everywhere 

Instagram creators can be found everywhere, from niche communities to mainstream culture. They create a wide range of content, from fashion, beauty, food, travel, and lifestyle to education, entertainment, and activism. 

https://www.instagram.com/p/CQTgu7sDo5A/?utm_source=ig_web_copy_link

Many creators like Jameela Jamil are also using Instagram for social causes and advocacy. They are using their reach and influence to raise awareness and advocate for issues they care about. 

Jameela Jamil, an actress and advocate for body positivity, uses her Instagram account to promote self-acceptance and to challenge societal beauty standards. She also advocates for mental health awareness and has been vocal about her own experiences with anxiety and depression.

Instagram creators are also likely to use a variety of monetization strategies to monetize their content and audience. This can include sponsored posts, affiliate marketing, merchandise sales, and more.

Go Shopping on Social Media

54% of people on social media use it to research products. Social media platforms are increasingly adding e-commerce features, such as shoppable posts and in-app checkout, making it easier for users to purchase products directly from social media. This allows brands and businesses to drive sales and revenue directly from their social media presence.

Source: 

Glossier, the skincare and cosmetics brand, has effectively used Instagram to promote its products and allow users to purchase directly from their social media feed. They use shoppable posts and Instagram stories to showcase their latest collections and drive sales.

Some of the ways that social commerce is being used on social media include:

Shoppable posts: Brands and businesses can now tag products in their posts and stories, allowing users to purchase products directly from their social media feed.

Live streaming: Social media platforms like Instagram and Facebook Live have been used by brands and businesses to showcase their products and take orders in real time.

Social marketplaces: Social media platforms like Instagram, Facebook, and TikTok have started to develop their own marketplaces where users can purchase products directly from the platform.

Virtual Reality and Augmented Reality: Social media platforms are starting to incorporate VR and AR technology to allow users to virtually try on clothes or see how furniture would look in their homes before making a purchase.

Also Read: The benefits of shopping in an ecommerce marketplace

Customer Support Is A Priority On Social Media 

Social media platforms, such as Facebook, Twitter, Instagram and TikTok, are being used increasingly as a primary means of customer support. Businesses are expected to use social media to provide customer service to 70% of customers so that they can receive support in real time, 24/7.

Hootsuite is a perfect example of a brand that uses social media as a primary channel for offering customer support to its users. 

Source: 

Hootsuite, the social media management platform, has an active presence on Twitter and uses the platform to provide real-time customer support. They have a dedicated customer support handle (@Hootsuite_Help) and are known for their quick response time and detailed assistance.

Final Words 

Social media is constantly evolving, and new platforms and trends are always emerging. TikTok, Clubhouse, and short-form video content are some of the most exciting new platforms and trends to watch, while social e-commerce and interactive and immersive experiences are also on the rise. 

As social media continues to play an increasingly important role in our daily lives, it will be interesting to see how these new platforms and trends develop in the future.

Featured Image by Alexander Shatov on Unsplash

The post Emerging Social Media Platforms and Trends to Watch in the Future appeared first on noupe.