4 tips for customer retention in the world of SaaS

4 tips for customer retention in the world of SaaS


Jul 18, 2022

Talon.One Writer

Content Team

Time to read icon

5 minutes to read

Selling SaaS (Software-as-a-Service) can be a tricky process. 

It involves a lot of time and effort from many different team members just to get a new customer to sign a contract. And if your Customer Success team doesn’t keep them happy before the end of the cancellation period, it could have all been for nothing.   

So to make sure that doesn’t happen to you, here are a few internal best practices that we implement at Talon.One.

1. Know Your Customer

"Knowing is half the battle." -G.I. Joe

Understanding and reacting to your customer’s needs and expectations is a crucial part of keeping them happy with the service you’re providing, and always has a direct impact on your customer success plan.

Your Sales team usually discover customer requirements as part of the pre-signing engagement process. And if not, the CSM (Customer Success Manager) can do it as part of the onboarding process. 

It’s important to have this information as soon in advance as possible, because it’s the type of tool every CSM should have ready in their tool-kit for a successful start to the onboarding process. 

2. Create an Onboarding Framework (a must-have) 

"By failing to prepare, you’re preparing to fail." -Benjamin Franklin

The majority of churning takes place during the onboarding process. So no matter how good your procedure for this is, there will always be room for improvement. 

The important thing to remember here is that early value for each of your customers can be very different depending on their respective use cases. 

Make sure your focus is on understanding your customer’s goals and future plans. 

Once these are established, you can create a plan for a structured series of meetings and workshops that offers the most practical and valuable knowledge your clients need to know.    

3. Regularly Observe Customer Performance

"If you can’t measure it, you can’t improve it." -Peter Drucker

To make sure your customer is on the right track, you need to define and monitor customer KPIs regularly without fail. 

You should focus on customer metrics like Product Adoption (who’s using it, and how), Product Stickiness (how much customers return to use your product or depend on it), and any other metrics that help you achieve your internal KPIs. 

Always remember to define your strategies in a way that your KPIs can be improved at a later stage. And always adapt your methods to accommodate every client based on their needs and expectations. 

4. Engage Customers with Consistent Communication

"Statistics suggest that when customers complain, business owners and managers ought to get excited about it. The complaining customer represents a huge opportunity for more business." -Zig Ziglar

The frequency of communication from your customers gives you a preview of what is about to happen in the future. 

If the customer engagement is low, it usually means that they have stopped using your product and your chances of retaining that customer will be steadily dropping. 

Consistent communication with the customer is of utmost importance. 

Your customer has to know that you are proactive and always there to help them whenever they need you. 

Communication can be made via phone, video conference or email, but remember that not all customers want to receive regular communication. Some customers can get frustrated by constant check-ins and prefer the self-serve model, using the Help Center Guides to help them get where they need to be with minimum effort. 

So depending on your customer’s needs you should always adjust your approach.

Plan for Customer Success  

So, Preparation, Observation and Engagement are the 3 keys to SaaS success.

Before working with a customer always: 

  • Discuss what they want to achieve by using your service 

  • Clearly explain what is possible and present a realistic timeline 

  • Track customer progress with internal KPIs

  • Engage with your customers consistently   

"There are no secrets to success. It is the result of preparation, hard work, and learning from failure." -Colin Powell

Get in Touch

Want to offer your customers more personalized sales promotions and Loyalty Programs? Find out more about Talon.One’s Campaign Manager and Promotion Engine by booking yourself a quick, no-obligation demo

Monthly Newsletter

Every month, I share an insights newsletter with thousands of marketers.

bullet point check

Promotion tips

bullet point check

Industry insights

bullet point check

Case Studies

Newsletter author

David Hartery

Content Lead at Talon.One

Talon.One Logo
The World's Most Powerful Promotion Engine

Wiener Strasse 10
10999 Berlin


41 Church Street
B3 2RT Birmingham
United Kingdom


One Boston Place, Suite 2600
02108 Boston, MA
United States


1 Scotts Road, #21-10 Shaw Centre
228208 Singapore

Capterra LogoG2 LogoMach Alliance Logo
© 2022 Talon.One GmbH. All rights reserved