- Greg Daines
It's not enough to deliver value every day
New research proves that even if you consistently drive measurable value, you'll still likely lose the customer. Why?
Because, customer needs aren't static, they change and evolve and new problems and needs arrive every day.
So if you keep delivering the same value, it eventually won't be enough. Your customer needs MORE from you.
Our data shows that by far the biggest driver of churn for customers - after their first year - is the lack of expansion.
We just completed a huge study (156k customers) that reveals how astonishingly huge this factor really is: The group of customers who have ever expanded their account stay 4.6 TIMES LONGER overall than the customers who never make a change!
WOW! Let that sink in. This means that "renewal" does not mean what you think it means...
When customers renew it isn't a reward for what you did, it's about what's next → what you are GOING to do for them.
If you think about it... The customer already paid you for the results they've gotten. Their decision to renew is entirely about FUTURE results. If the customer doesn't have new value to look forward to, then they'll go somewhere else.
The data shows conclusively that unless you continually improve and expand the results you drive for your customers, you will not have high long-term retention.
This is the hampster wheel that you can never get off of in SaaS.
So embrace it!
HERE'S HOW TO ENSURE YOUR NEXT RENEWAL:
Don't focus on what you accomplished!
Show them the value - to them - of WHAT'S NEXT and the real results they should be looking forward to.
And give them options to BUY MORE RESULTS.