How to Improve Customer Satisfaction in SaaS Business Model?


You have probably heard or realized that customer satisfaction positively impacts business results. But what if your company has a low level of customer satisfaction? What harm can that do to your company?

Low CSAT, simply put, indicates that your customers are dissatisfied with your company (your product, services, etc.). Unsatisfied customers are less likely to return, resulting in lower customer retention and higher churn rates. Those CSAT results can hurt your company, causing it to go into the red or go out of business.

On the surface, acquiring new customers may appear to be the key to growing your business. Obviously, the new acquisition is an important element of business growth. The real secret ingredient in achieving long-term growth is customer retention, not customer acquisition.

Customer retention is important, and that can be figured out via these stats

  • Repeat customers account for nearly 65 percent of a company’s revenue,
  • Increasing customer retention by 5 percent can increase profits by 25 percent to 95 percent.

The more loyal customers become to a company, the more likely they are to try new products or bring in new customers.

A successful business needs satisfied customers.

In the long run, focusing on customer retention actually fuels acquisition: when your core customers are happy, they bring you, new customers. They become product advocates, sharing their positive experiences and encouraging others to join them. There is no better advertisement than that.

So, how can you tell if your customers are satisfied? Simply listening to your customers and acting on user sentiment and feedback data can optimize user onboarding and engagement.

This article contains ready-to-use tactics to help you increase customer satisfaction. By the end of this article, you get everything you need to start improving customers’ satisfaction and ramping your SaaS business.

Let us begin by prioritizing the importance of customer satisfaction in your SaaS business.

How does Customer Satisfaction Drive SaaS Growth?


An angry customer’s tweet or YouTube clip can make or break a brand. Having control of the product narrative is thus more important than ever.

Customer satisfaction affects your SaaS business metrics such as retention, recurring revenue, and customer churn analysis.

Many SaaS companies used to overlook the significance of customer satisfaction. They simply did not see it as something deserving of a thorough approach or a deliberate strategy.

People believed that you would be successful if you had a great product and knew how to commercialize it. However, that is not how pieces fit in the advanced digital realm.

 Customer retention and increasing customer lifetime value (CLV) have been identified as the keys to scaling their modern business for SaaS founders

The immense number of competitors, all offering functionally similar products to yours, has made providing a great customer experience more essential than ever.

Customer satisfaction is not easy to accomplish. However, it has the potential to be game-changing for your SaaS business.

Advantages of Customer Satisfaction

What do you stand to gain if your customers are satisfied? Actual. Here are the key advantages of customer satisfaction according to our research

  • Devoted Customer
  • Personal Recommendations

1. Boost Customer retention

If your customers are impressed with your product and see value in it, it stands to reason that they will stay with you for longer.

This raises your CLV. In other words, you will make more money on average from each buyer. The beauty of a SaaS product is that it generates recurring revenue.

A high CLV demonstrates product/market fit and brand loyalty, as well as a clear picture of how well your product or service resonates with your customers. This also helps you predict how well your company will perform in the future.

2. Increased WOM Marketing

The most effective advertisement method for any SaaS company is word-of-mouth. The tricky part is that you have no say in it. Sort of. You cannot force your customers to promote your product, but you can encourage them to do so. What steps do you take to accomplish this?

Improving customer satisfaction is what converts users into endorsers. Your product may make such an impression on your customers that they tell all their friends and colleagues about it. No marketing campaign can compete with that

 Word of mouth creates twice as many sales as paid advertising? Or are people four times more likely to buy a product if it comes highly recommended by someone they know?

According to the stats, 74% of consumers consider word of mouth an important factor in their purchasing decision. In addition, 92 percent of consumers trust recommendations from friends.

If it is not already at the forefront of your marketing strategy, it should be! Word-of-mouth marketing is inexpensive, increases brand loyalty, and reveals new ways to reach potential customers.

3. Lowers Cost

We have already discussed why increasing customer satisfaction increases revenue. But wait, there is more. It also lowers your costs. Clearly, any scaling SaaS company must do two things: find new customers and keep current customers. The interesting part is that it costs 5 times as much to find new customers as it does to keep existing ones.

All of the money you spend looking for new clients may be wasted. You could focus on customer retention for a fifth of your marketing budget.

The true key to SaaS company growth is retention, and improving customer satisfaction is a surefire way to keep your customers.

Improve customer cost and reduce cost. Period.

It is clear from the stats that increased customer satisfaction leads to increased profit and decreased costs. Such efforts are even more important in today’s challenging economic climate. Small steps that help you save money can add to big savings. What is there not to like about this?

Now that you know how vital customer satisfaction is and the fantastic benefits let us talk about how to measure it…

Evaluating Customer Satisfaction

There are several methods for gaining insight into how customers truly feel about your user engagement. It is a good idea to use a variety of metrics so you can assess the situation from various perspectives.

Fortunately, there are numerous tools and strategies available for measuring customer satisfaction. Here are a few examples:

Customer satisfaction can be measured effectively using surveys. If you practice social listening, you should be able to identify the critical points (i.e., checking social networks, forums, chat sessions, and so on to see what people say about your services). Make sure they are included in your survey.

Consider timing after you have finished your template. People will fill out the survey as a courtesy to you, so timing is critical. Some businesses conduct surveys following the onboarding process, while others conduct surveys after completing a significant cycle. Bottom line: conducting your survey at the appropriate time will allow you to obtain more answers to your questions, the vast majority of which will be useful.

Take action in response to the survey results. Collecting and analyzing survey data is pointless if you are not going to act on it. Continue reading to learn how to improve customer satisfaction.

Top Tips to rise your Customer Satisfaction to Next Level

As each business niche is distinctive, there is no solitary solution to this situation. The key is deciding what works the best for you.

Here are some ideas to help you improve customer satisfaction.

1. Focus on Customer Acquisition

Customer acquisition can be a challenging process for a startup entity. Finding customers and offering your services to them is a fine place to begin if you want to make them happy. But how do you acquire new clients?

You can, however, try these methods

Email marketing

Providing the right service and message to the right audience can be a very effective tool for attracting new customers. Make your emails brief and to the point, with a call-to-action button so the reader can take the first step immediately. Create a compelling subject line that will pique people’s interest and encourage them to open the email.

Furthermore, with an ROI of $38 for every dollar spent, email marketing deserves a spot in every marketer’s toolbox.

Inbound marketing

 Creating high-quality tutorials and learning materials will increase your chances of boosting sales. However, creating great content is not enough. You must also publicize it.

2. On-Boarding New Customers

Ensure your onboarding sequence is simple to understand so that nothing interferes with the user’s first impression.

Make the handoff process as easy as possible. The sales representative should provide detailed notes to the customer success manager

Connect your customers’ success to the goals of your sales team. CSMs and sales teams must effectively communicate

Set up a post-sale discovery call. Set objectives for the coming year with it

Make quick wins. Short-term value drives long-term adoption

Regularly collect data and evaluate your processes

Collecting data and evaluating it regularly will help improve your processes.

2. Take Initiatives to Boost Customer Loyalty

The customer experience does not end with onboarding. Check that you have resolved all critical points and consider ways to strengthen customer loyalty at each touchpoint. Here are some ideas to get you started:

  • Acknowledge who your customers are when they return to your page and greet them by name.
  • Thank them via email or social media for their business. Use social media to maintain a consistent relationship with your customers.
  • Allow them to discuss, comment on, and ask questions about your products and services in a private group with your employees
  • Ask your customers about their experience and how it can be improved.
  • Provide exceptional customer service.  Poor customer service results in reduced customer loyalty and revenues.

3. Act According to Feedback


Here are some practical methods for gathering feedback:

  • Surveys. As previously stated, surveys are essential for gathering information from customers.  Ensure that your questionnaires contain the appropriate questions to collect the necessary information.
  • Analytics. Tracking tools can monitor user behavior and determine which features are popular among users.
  • Direct Contact. Reach out to your users via chat messages or phone calls to ask them questions.

4. Referral Marketing

When you begin to receive referrals, you know that your previous efforts are bearing fruit. Customer satisfaction frequently leads to positive word-of-mouth referrals. And getting new customers through referrals is fantastic because it saves you money on acquisition.

That is not to say you should sit back and relax. Make a referral program to encourage your current customers to refer new customers. In exchange for paying users, you can provide freebies, monetary rewards, or discounts.

Key points

More and more competitors are likely to arise, hoping to steal your customers. Unfortunately, that is a part of the SaaS world. As a result, customer satisfaction is a key differentiator.

Here are some key points to remember from this article:

  • Improving customer satisfaction is critical because your customers will stick around longer, increasing your CLV.
  • The main advantages of increasing customer satisfaction are increased loyalty, word of mouth, and cost savings.
  • Three main points of enhancing customer satisfaction are customer onboarding, adoption, and engagement

If you want to improve customer satisfaction, you must not allow your strategy to become stale. It must constantly evolve to meet your customers’ needs, the ever-changing SaaS landscape, and your competitors’ constant innovations.

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