SaaS companies, like other service-based businesses, know the importance of retaining their current customers. And to do that, the company’s churn rate must be kept as low as possible. But how? One effective method is by offering them a free online course.
What is Churn?
Churn refers to the customers you once had but no longer use your services. Churn rate refers to the number of customers (or the percentage of customers) who leave you for any number of reasons.
Often they leave your company right after the initial onboarding, especially with a SaaS product. They sign up get confused about the product, then cancel the subscription. This one of the reasons companies like ClickFunnel and LeadPages create extensive free training (free courses about marketing, facebook ads, webinars, and more) and user guides. The more they reduce the confusion of new users, the more people stick around.
If you want your business to stay afloat, you need to keep track of your churn rate and keep it low. Remember – if your customers are leaving you, then that means you will need to bring in more customers to replace them. Marketing costs are generally more expensive than the cost to retain your current customers.
A simple tweak might be all you need to keep 10% more of your customers every month, meaning your company can grow that much faster.
Reduce Churn Rate with Free Online Courses
As I mentioned, one way of reducing your churn rate is to make sure that your customers remain educated. And that may mean offering them online courses. Making these online courses freely available not only help your existing customers use your product more effectively, but also help new potential customers first find your courses, and then ultimately want to buy your product!
For example, you can offer a free online course on how to use your product properly. Perhaps they quit shortly after onboarding because they found your product too complicated. With an online course, you can explain the proper procedure more clearly so that they will not feel intimidated or frustrated by the product because it didn’t work as promised.
With your free online course, you can also make them understand each feature of your product. You can highlight exactly how your product can solve any specific problem or issue your customer has. You can also demonstrate how they can use it more effectively.
Or maybe the course can even help them get greater results with your product. For example that is why Leadpages offers free marketing courses. They offer a marketing software, so the more their customers know about marketing, the more successful they will be and the longer they will use Leadpages.
By focusing on how your product can actually solve the problems of your customers (instead of creating them), you keep your customers happy and successful – which in turn will keep your churn rate low.