Enhancing Customer Satisfaction in SaaS

Sep 5, 2024

Lecture Notes on Customer Satisfaction and SaaS Improvements

Introduction

  • Importance of managing costs and maximizing profits
  • Example: Saved a portfolio company $2 million in bottom-line profit
  • Focus on customer satisfaction, reducing refunds, and increasing upsells

Overview of the Business Challenges

  • Business Type: Software as a Service (SaaS)
  • Issues after implementing new software:
    • Increased churn
    • Decreased customer satisfaction scores
    • Lower upsell rates

Problem #1: Onboarding Process

  • Definition: First touchpoint after purchase
  • Key Issues with Current Onboarding:
    1. One-to-Many Approach: 25 customers per call
    2. Content Focused on Company, Not Customers: Emphasis on company history vs. customer needs
    3. Inefficient Use of Time: Too much time spent on password resets instead of onboarding
    4. Lack of Next Steps: No structured follow-up after the onboarding call

Solution: Improved Onboarding Process

  • Pilot Program: Tested new onboarding with 15% of new customers
    • Shifted from one-to-many to one-on-one onboarding
    • Followed a sales framework called CLOSER to reinforce customer decisions
  • Key Strategies Implemented:
    • Clarifying goals with customers
    • Providing a quick win (e.g., helping with login setup)
    • Directing customers to support when needed

Problem #2: Customer Expectations

  • Common Complaints:
    • Too technical
    • Insufficient support
    • Slow attainment of results

Solutions to Expectation Issues

  • Rescripted Sales Process: Set realistic expectations during sales
  • Increased Support Availability: Implemented chat support within software
  • Lowered Reading Levels in Documentation: Made materials more accessible to a wider audience

Problem #3: Misaligned Incentives

  • Issues Identified:
    • Sales team handling customer support issues
    • Customer success (CS) team lacking incentives
    • Unstructured calls leading to poor customer experiences

Solutions to Incentive Misalignment

  • Created Dedicated Escalations Team: Focused on customer issues
  • Aligned Incentives: Introduced commission structure for customer retention
  • Scripting Customer Success Calls: Ensured structured and effective communication

Results from Implemented Changes

  • Key Outcomes:
    • 61% reduction in cancellations
    • 25% of support call customers upsold to higher levels of service
    • 2.4x overall increase in ascension rates

Takeaways for Implementation

  1. Cost of Change: Expect initial challenges when implementing new strategies.
  2. Importance of Tracking: Metrics can highlight issues and drive improvements.
  3. Good Customer Service is Essential: Regardless of company size, maintain high service standards.
  4. Engaging with Unhappy Customers: Valuable insights can be gained from discussing issues with them.
  5. Follow-Up Strategy: Tailor follow-up based on customer segments (low ticket vs. high ticket).
  6. Revenue Retention Focus: Keeping existing customers is as crucial as acquiring new ones.
  7. Testing New Strategies: Pilot programs can help validate assumptions before full-scale implementation.
  8. Proactive Customer Success: Reach out to customers to maintain engagement and satisfaction.