Why will your SaaS disappear in three years without an obsession for use?
In the SaaS, the obsession for acquisition often masks a structural problem: the real use of the product. Companies invest massively in marketing and sales, but neglect the follow -up of adoption after signing the contract. This flaw condemns a number of players to rapid erosion from their customer base and a difficult to reduce churn.
Acquisition as a strategic trap
SaaS companies devote most of their resources to acquisition: advertising campaigns, automated nurturing, SUntReraînée sales teams. But once the contract is signed, the dynamics change suddenly. The user, insistently courted during the sales cycle, is often left to himself once onboard. Result: a partial adoption of the product, a limited perceived value and, ultimately, an almost inevitable departure.
THE Net Revenue Retention (NRR)key indicator of sustainable growth in SaaS, depends directly on the intensity and the depth of use. A customer who does not fully exploit a product will not renew his subscription, will not recommend the solution and will not generate growth. However, too many companies continue to analyze their success in terms of the arrival (annual recurring income) rather than the Deep Use index : the share of active users who draw real value of the product.
Three fatal errors in monitoring of use
An insufficient analysis of the granularity of use
Saa’s dashboards are often saturated with metrics on acquisition and conversion, but much less detailed on the adoption of the product. Classic error is to measure a User average Over a given period, thus masking the disparities between committed and inactive users. A user who connects once a month does not have the same weight as a daily user.
The existing customer and the Ambassador Customer
Saa companies spend too much time listening to their loyal customers. The latter already appreciate the product, know its subtleties and do not represent the reality of new users. The challenge is to analyze the use of recently onboard customers, those for whom the adoption is still uncertain. They are the ones who determine the future rate of Churn.
Forgetting “Why” after the sale
Before signing, everything is done to demonstrate the value of the product: demonstrations, business boxes, webinaries on the king. Once the contract is signed, the speech evaporates. The user receives technical training, but no one reminds him why he chose this solution. However, without a constant reaffirmation of the value of the product, the use decreases.
The use matrix: a methodical approach
The SaaS which display strong retention adopt a rigorous strategy around use, articulated in three axes:
- Functional depth : What share of key features is really used? A user who only exploits 20 % of the product is a latent churn.
- Organizational depth : Is the product limited to operational users or adopted by managers and C-Level? The more the use goes back in the hierarchy, the stronger the anchoring.
- Daily monitoring : Is use stable or irregular? A sudden drop in a client company is an alert signal long before the cancellation of a subscription.
Towards a new retention paradigm
The SaaS is based on a simple principle: a user who fully adopts a product does not churn. The acquisition attracts customers, but only a fine understanding of use allows you to keep them. A company that does not structure its adoption monitoring runs to failure.
