Archive | Retention

How a Simple Three-question Survey Tripled the Activation Rate of “No-Show” Users

Reactivation Through User Nurturing

User nurturing can have a big positive impact on both adoption and customer success, as we’ve discussed in earlier research alerts. But user nurturing can also be critical to retention. Like so many customer dynamics, churn starts gradually—and if left unnoticed, it can develop into issues that are impossible to resolve. Assuming you’ve been able to achieve your implementation and adoption milestones, any customer and revenue churn usually starts with user churn. User churn (i.e., loss of users) is when individuals start to drift away from using your solution. At renewal time, this drop in usage results in seat churn (i.e., loss of quantity on renewal), which is the first loss of revenue. Ultimately, further usage drops can result in […]

User Nurturing with a Twist—and Why It’s Critical to Customer Success

In a perfect world, we’d like to see all provisioned users become loyal users—but the reality is that even getting a majority of users to adopt (let alone become loyal users) can be a struggle. At the same time, reaching majority adoption is critical to renewing a customer. So how do you tackle this adoption challenge? Through user nurturing. You need to make sure that every user is contacted at the critical stages in your onboarding process—with training, best practices, and (of course) reminders. In fact, even a simple login reminder can have a significant impact on adoption. But you can do even more. Consider the situation of one SaaS company from our data. The company defined users into three […]

Customer Success + Exception Management = Revenue and Profit

There are many reasons to have a “standard” process for customer on-boarding, adoption, renewal, and the other phases of the customer lifecycle. But the truth is that every customer and user is unique—and if you’re only following a standardized process, you’re leaving revenue and profit on the table. The best approach is to define a standardized process for these phases, but then to proactively monitor and manage exceptions. What is exception management? It is the process of identifying predictive triggers that signal when a customer is off-track from a successful customer journey and then proactively engaging that customer to bring them back on track. We’ve seen with our own customers how managing exceptions can have a direct, measurable impact on revenue and […]

The Data Behind Adoption and Retention in the Customer Journey

In the last research alert, we talked about the “90/10 Rule of Adoption.” That was an observation based on our own real-world data which shows that after 90 days, a non-loyal user has only a ten percent chance of becoming a loyal user. Like the time-honored 80/20 rule, our 90/10 rule is meant as a guide for setting priorities—and the key takeaway is that adoption is critical to the customer journey. The 90/10 rule of adoption encourages companies to better understand the dynamics of customer adoption, because adoption is often highly correlated with customer retention and renewal revenue. This correlation between adoption and retention makes intuitive sense: Customers only want to pay for what they actually use, so if adoption […]