Retention 🤝

Effective strategies to increase customer retention

Hey founders & friends….. happy Friday!

A few newsletters back we shared some insights into the different ways to measure churn. You can read it below 👇👇

Let's churn it up 😉

We wanted to dive a bit deeper into this topic and provide a few basic strategies that can be used to increase customer retention. Let’s jump into it!

1. high-performing account management teams

Building out and properly managing a high-performing account management/customer success team is one of the most effective strategies for improving customer retention. A successful account management team can create strong relationships with customers, support them with any product issues, and help optimize the user experience. This will not only increase retention but in a lot of cases, help drive referrals.

2. Customer segmentation

Customer segmentation is critical for improving retention as it allows a company to understand which customers are “at-risk” of churning, thus putting more resources into retention strategies for these segments.

Further, by properly breaking customers into groups with similar characteristics, then analyzing why those groups tend to churn allows companies to focus their efforts on keeping similar customers from leaving.

3. Improving pricing strategies and product offerings

Certain price and product offering strategies allow for more opportunities to improve net retention. A module-based offering and tiered pricing allow for opportunities to upsell customers. Another effective pricing strategy to improve net retention is implementing price escalation into multi-year contracts.

Interested in learning more about this topic?? Make sure to check out the following below 👇

📚  The Ultimate Guide to SaaS Customer Segmentation in 2021

📚 How To Improve Net Retention In Your SaaS Company: Three Pillars To Focus On

Favorites from the Ecosystem

Updates from team Bloom👇…..

Bart Macdonald • BloomEquityPartners.com @BartMacdonald

This little one decided to join us a few weeks early. Truly the most wonderful experience of my life. Feeling very grateful for a healthy fam, and in complete awe of how amazing Mothers and medical services staff are 🥰 🥂

Investors👇…..

Sieva Kozinsky @SievaKozinsky

Most people will tell you the best opportunities are “OFF-market” or “not-for-sale”. Yet some of our best companies were “ON-market”. These companies are growing 50-100% per year. Be sure to build a network of brokers who will send you good deals.

Justin Vogt @J_M_Vogt

Conflicting advice we get on proprietary sourcing Camp 1: Only send 3 emails. If an owner is interested in selling, they will respond. No sense annoying them with a bunch of emails Camp 2: Follow Up incessantly. Getting an owner's attention is hard, so put more shots on goal

Founders👇……

Jesse Pujji @jspujji

Starting a business can be painful. You feel lost 97% of the time - the ups and downs are gut-wrenching. I wish I had a cheat sheet of principles for my first startup. So I wrote one. Here are 40+ learnings about entrepreneurship I wish I knew sooner:

Ryan Breslow 🕺 @ryantakesoff

Over the last 5 years, I built a $4B company. Sounds awesome right? Not until recently. I made every mistake imaginable. The toughest part was getting my head right. Here are the 12 mindset rules that I’ve developed.

Operators👇…..

Michael Martocci 🚀 SwagUp @MichaelMartocci

If you get involved in every detail of your business you’ll go crazy Focus more on hiring people you can trust to lead different functions and let them handle it Watch the data and step in as needed when or they pull you in for help Avoid being a prisoner of your business

KP @thisiskp_

Comparison is a thief of joy At 23, when I moved to the U.S., I looked at everyone around me & assumed I was late to success But the last 10 yrs made me hungrier & more ready than ever I’m 33 now & finally found my stride Don’t run your life on someone else’s timeline

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What We’re Reading and Listening To…

📚 For Founders: How to Sync Strategy, Execution and Growth

📚 The Asymmetric Risk/ Return Threshold & It's Impact on Distressed Investing

News from the Industry: deals, deals, and more deals 💰

Vista prepares pitch for next big software fund

Enterprise software M&A rides ‘post-pandemic’ wave with 751 Deals

Investors led by Carlyle Group have bought a majority stake Saama Technologies Inc.

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End Note 🔚

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