5 Reasons Why Most SaaS Companies Fail to Retain Users After Bulk Sign-ups

There are three major forms of cloud computing, SaaS being the most popular of them. SaaS is a software licensing and delivery model in which a service provider hosts applications for the users and makes these applications available to them via the Internet.

Owing to its feasibility, easy access and cost-effectiveness, SaaS model of software delivery has become common among various organisations, which is why it has also been incorporated into the software delivery strategies of many vendors. Now, while many vendors look at the growing user base and new renewals as measures of their success, it is actually the overall user experience that determines the SaaS product success. How businesses use and interact with the product is what makes the SaaS product last longer in the market.

So, let’s discuss why some SaaS companies fail to retain users after bulk sign-ups.

Failure To Provide Effective Solution

A major reason why some SaaS companies are not able to retain their customers is their inability to provide an effective solution to the customers. While some are not able to solve existing problems of their users, some are providing solutions that users don’t need.

Remember, users have multiple options, like outsourcing the service, using in-house software or signing up a competitor, they can switch easily. This is why it is important to not sell to customers with goals you can’t help them achieve.

Lack Of A Smooth Onboarding Process

Onboarding process is the first interaction users have with the product. It is also the first time a user receives value from a product. If the onboarding process is not smooth, users get frustrated and dissatisfied with the product. It may also become a reason for them to not renew the subscription.

To avoid this, SaaS companies should try and make the onboarding process as personalised as possible. The users should receive personalised guidance throughout the process.

Ineffective Customer Support System

Selling the SaaS product should not be the ultimate aim of the company. They should rather engage their customers and strive to provide them with great user experience. Staying in touch with them and resolving their issues on time is a good practice.

Also, the companies should make it a point to communicate the right things to the right people at the right time. This would avoid a communication gap that may result in frustration and wastage of precious time.

Poor Management

Often overlooked, the management’s role in the success of a SaaS product is quite critical. This is because the management is responsible for activities like creating a product roadmap, getting funding, developing a marketing strategy. If there is no clarity on the vision, the product is bound to fail.

Also, management should strive to hire employees that understand the product well. The employees need to know how to perform their jobs in a manner that supports the type of customer experience you are trying to create.

Too Much Focus On Numbers

Some companies pay a lot of attention to the numbers that come in. They equate an increase in users and renewals with a product’s success. Yes, data is important, but it is equally important to have a ground reality check from time to time.

It’s always good to keep a tab on withdrawals and check with them why they decided to discontinue the service or not sign up for their product. While data may point out to a different problem, speaking to your customers might highlight another problem.

It is imperative for a SaaS company to provide its users with great and painless user experience and build a relationship which users value. The bond that the users make with the company is what makes them come back for renewal.