While maintaining customer engagement is crucial for SaaS companies, sales teams also need the right tools to gauge involvement and use the data to improve sales. These marketing strategies are just a couple of talking points that David Skok outlines in a post on For Entrepreneurs.
Skok writes that the clear goal for a SaaS CEO should be “to increase the profit they make from each customer while lowering the costs in sales and marketing that it takes to acquire each customer.”
Measuring customer engagement, he writes, is key tool to achieving that goal. Skok says understanding customer engagement will allow businesses to increase trial conversion rates resulting in lower costs and lower churn rates, which directly increases lifetime value.
Skok highlights two emerging software applications, Totango and Apptegic, adding they can help SaaS companies understand their customer behavior at the individual level, therefore creating a more streamlined and effective sales methodology.
“As more and more transactions have moved on-line, businesses are losing the insight they would gain from employees talking directly to customers,” Skok writes. “That turns out to be a major loss.”
This is an important tool for three reasons, Skok says, as it can help:
- Identify customers that need help, or that are ready to purchase, in SaaS free trials. Intervene using either email or human touch to increase conversion rates.
- Identify customers that are about to churn. Intervene using email or human touch to try to turn them around, thereby reducing churn rates.
- Identify customers that are appropriate for an up sell or cross sell.
For a deeper look into measuring customer engagement as well as thorough reviews of both Totango and Apptegic, visit the original post here.