The Importance Of Customer Service For A SaaS Company
A major performance indicator for any company is customer acquisition and customer lifetime value. Though the goal is to grow your company by growing your client base, many studies show that retaining existing customers may be just as effective. It can be more cost effective and potentially more beneficial to the overall health of the company than acquiring new customers. In fact, a 5% increase in customer retention can increase profits 25-95%.
In the game of customer retention, engagement is key. For a software as a service (SaaS) company where the product is largely provided by a third party via remote access to its customers, it is critical to bridge the physical distance between software provider and software user. With SaaS, there are still many opportunities to engage with your clientele from their initial encounter with your product to when they become consistent users. You may have a great product but if the client does not know how to use the product or have access to the right assistance, they will be less inclined to sign on let alone perceive the quality of what your product offers. So it's important to understand there may be a potentially steep learning curve and invest in the proper customer support channels that will cater best to everyone’s needs because your client’s experience while using your service is paramount.
A key point of contact with your customer can be the onboarding and implementation step. The client will need a training process to become familiar with your product. They will learn to use the product, learn key best practices while engaging with your product, as well as ingest further tutorials to help navigate all the offerings of your product. Rather than having the client try to figure out the software on their own, providing proper customer support staff, FAQ pages, and a multi-faceted approach throughout the process will ensure that the customer has a positive interaction with your product. This can make or break the experience.
Customers obviously want a working product, but they stay based on the quality of service. In fact, customers are willing to pay more for better service. In a landscape where the customer may be inundated with competitors offering similar products, exceptional customer service can differentiate your business from another. That one positive experience with your company’s support team can be the deciding factor for the client in choosing to stick with your brand. When a company provides the right support, they can procure loyalty from the customer to the product. Loyalty is built on trust and that trust is built on the relationship that the customer has with your company.
That is why we at PVX invest so much in our customer support because we know that good customer service is crucial to increase customer satisfaction and decrease churn rate. Moreover, a happy customer’s experience extends further to help grow your brand. If a customer is happy using your product, they may refer others, causing a chain reaction and word-of-mouth advertising.
At the end of the business day, no matter how great your product is, the success of your company is contingent on how the client perceives the brand. So, investing in excellent customer service can take your Software as a Service brand from a great product to a successful company.