Renewal automation for enterprise SaaS
While every business needs a focus on acquiring new customers, reducing customer churn and increasing renewals are key to building a sustainable growth model.
Renewal automation reduces churn and increases renewals
Customer churn is one of the biggest challenges for SaaS platforms and happens for various reasons. While you can’t control everything, plenty of things are within your control: a poor onboarding process, lackluster customer support, and product bugs.
Yet, many platforms focus so much on acquiring new customers that they fail to do the hard work afterward to ensure success and continue to nurture customers toward renewals. Think of it this way. If you have 1,000 customers and lose 3% every month, that's a loss of 360 customers annually, 36% of your customer base. You have to replace every one of them just to keep your subscriber levels consistent. That doesn't include the cost of acquiring new customers either. The numbers multiply rapidly if you have tens of thousands or hundreds of thousands of subscribers.
This is where renewal automation for SaaS makes the difference.
Renewal automation isn’t just auto-renewal or reminders that a subscription is expiring. It starts with proactive retention marketing strategies at key touchpoints to build toward renewal transactions. It works to reduce the customer churn rate by engaging customers throughout their lifecycle, encouraging customer feedback to alert for signs of customers that are at risk of churn.
The best renewal automation platforms not only help improve your retention rate but help build customer lifetime value (CLV) by:
Improving the overall digital customer experience
Improving product and brand reputation
Creating upsell and cross-sell opportunities
Encouraging early renewal to reduce time to cash
Scaling growth — without adding additional headcount
Customer churn by the numbers
Reducing churn and increasing retention provides a stable customer base, so new customer acquisition is an additive rather than replacing revenue. It’s the key to growing monthly recurring revenue (MRR) and executing a sustainable growth strategy.
A 5% increase in customer retention can double revenue
About half of revenue comes from just 8% of the most loyal customers
82% of organizations report that customer retention costs less than customer acquisition
US companies lose $83 billion from poor customer retention strategies
It costs five times more to acquire new customers than keep an existing one
Churn management for SaaS
Churn management software can provide customer churn analysis to help calculate churn rate and analyze the underlying causes, such as how customers feel about your product and service. This provides the information you need to resell customers on your value proposition at key points in the renewal process.
Cleverbridge allows you to automate the renewal outreach and conversions. Many companies let our automation handle the complexity, freeing up the sales team to focus on high-value selling opportunities. Other organizations choose to fully automate their renewals.
You can also choose to deploy auto-renewal.
How Cleverbridge reduces customer churn for SaaS organizations
73% say the customer experience impacts purchasing decisions. Customers must have an exceptional experience at every touchpoint.
Cleverbridge offers seamless buying and renewal processing. We remove the friction in the buying process, including full localization of offers in terms of language, taxes, payment methods, and currencies.
Cleverbridge provides full-funnel subscription management to introduce products and bundles, launch promotional periods, offer discounts, and convert free trials to paid subscriptions.
Customers can leverage self-service tools to manage their renewals or make changes to subscriptions. This helps you:
- Reduce deal lead time
- Reduce time spent on manual tasks
- Simplify and automate the renewal process
Your customers need regular reminders about the value you bring. We employ artificial intelligence and machine learning to create engagement strategies informed by customer behavior. This allows you to create the rich, personalized digital experience that B2B buyers now expect.
Continued engagement at key touchpoints in the customer buyer journey reinforces the value proposition and leads customers toward renewal.
Every time you lose a customer, it’s costly. Not only do you lose that revenue, but you have to spend additional resources to replace them - or win them back, and that’s just to break even. Reducing churn saves costs, improves your CLV, and grows your bottom line.
Automation helps you avoid losing revenue from churn. Our churn prevention tools have built-in automation, so you never miss a renewal date or opportunity again. Built-in growth tools can automate all of your renewals or prioritize customers to enable your sales team to focus on high-value customers while automating the process for lower-value or low-chance renewals.
You can fully automate renewals by using our self-service tools.