5 SAAS renewal challenges
Startup offerings that are well accepted by their customers are proliferating at a high rate and this is something that we see happen very frequently in the last 5 years.
With expanding, customer base and competition surging in the SAAS categories subscriptions renewals is one of the top three discussion points in board meetings.
Why is Renewal Important in Startups?
Most of the times when a business takes its flight, there are more expenditures than income. Its longevity depends on sales or heavy external aid by the investors. Many times, it does not happen, and the business fails.
To keep the balance between expenditure and income, revenue is the key.
This revenue is gotten from the customers who chose to subscribe to your service.
The real challenge that many businesses come across here, is to keep generating the same revenue or on the better side, get its rate increased.
5 Renewal challenges that startups come across:
The real challenge that many businesses come across, is to keep generating the same revenue or on the better side, get its rate increased.
Value Realization; Return on Investment (ROI):
Value Realization is a five-step process.
First comes Value Definition. This is when the value is defined during the sales undertaking with a ROI which was accounted for. This value sets their trust. ROI, as the name suggests, is the calculation of the return expected after an investment.
Second, Value Delivery. This is the step where the value is delivered to the customers through various engagements.
Third, Value Realization. This is the “uh huh *nods*” moment for the customers; when they feel that every penny invested in the service was worth spending.
Fourth, Value Validation. This is the time where the customer confirms the worth of the service/product.
Lastly, Value optimization. This is the stage when the customer attains full satisfaction through complete optimization of the product.
Many startups fail to recognize the importance of these steps, and sometimes tend to skip some.
Product Fitment:
The meaning of Product Fitment can be comprehended by the phrase itself, i.e., a product that is fit for a good market. A product that can satisfy a market. Many times, your company may feel that the product fit is not happening, the customers are not getting the suitable value out of your product, its usage is not growing fast, the reviews of the products are not that fascinating, and a lot of deals remain unsealed.
Delayed Onboarding:
Onboarding, often known as Customer Onboarding, is when the company provides the customer with the documentation, tutorials, and all the kind of help, when the customer is to use its service for the first time. Many times, the companies delay this process which often leads to dissatisfaction among the customers. Not being introduced to the service arises many questions in the minds of customers. Hence, they turn around and tend to leave or unsubscribe.
Product Adoption:
Product adoption is when the customers are made conversant with the product. It is particularly important for the company to sell their service and make the correct people aware about the same. The more awareness is spread, the more deals will be signed, and more revenue will be generated.
Lucrative completion:
Deriving profit for a startup is the first goal a company should pin on their task bar. Keeping in mind the expenditure and the contracts, it is important for the company to make it’s income higher compared to the expenditures. This is the only way a company will not drown. Many times the profit making is ignored and focus is only laid on the daily costs.