How Can AI chatbots Help Reduce Churn in the SaaS Sector?
The SaaS market has grown rapidly and is expected to continue growing. It’s being fueled by thousands of new competitors in already saturated sub-segments (there are 10,000 private SaaS businesses alone), and it’s predicted to reach $164.29 Billion by 2022 SaaS companies need to provide exceptional customer service, especially during times of rapid growth, in order to reduce churn and survive. SaaS companies are increasingly turning to AI chatbots for the seamless and immediate customer service that B2B customers demand.
SaaS churn rates can be reduced by prioritizing customer experience
The SaaS market is crowded and the churn rate is one of the most important metrics. The industry’s acceptable churn rate is between 5-7% and 30%, but SaaS companies report that their churn has increased over the past year
We all know the statistics about customer acquisition costs versus keeping customers. It is 5-25X more costly to acquire a customer than it is to keep an existing customer 2. This is compounded by the fact B2B buying cycles getting longer and more complicated, making it even more critical to keep current customers happy.
Today, customer experience investments are one of the best ways to reduce churn in today’s market. There’s also a financial incentive. 86% of B2B buyers will pay more for excellent customer experience companies. As if that weren’t enough, companies who prioritize CX are 6X more likely to convert new leads than those that focus only on product growth
Also read: 6 Types of Chatbots: Which is Right for Your Business?
How SaaS Companies can leverage AI Chatbots for Incredible Customer Experiences
Although customer acquisition is important, SaaS companies can use AI to reduce churn as well as improve customer experience. A customer’s experience when they reach out to a company with a question or concern is just as important as the frictionless experience with a product. 66% of B2B customers have stopped purchasing from companies after experiencing poor service.
Chatbot statistics show that AI chatbots are able to help SaaS companies respond quickly to customer questions, scale during periods of high growth, and provide instant solutions to problems. These are just a few of the key ways SaaS companies can use AI chatbots.
Increase engagement with early-stage B2B buyers and encourage them to request a demo, or sign up for a trial. Pre-sales chatbots can quickly answer questions about pricing, deployment times, ROI, and other topics. If a customer has a more complicated question, they can easily route the conversation to sales associates. AI-powered chatbots are able to preemptively reach out to customers based on their website behavior. A bot may be able to ask specific questions about pricing tiers if a prospect clicks around the pricing page.
Once a customer logs in, an email or chatbot can assist them with setting up their account and introducing them to the features. A chatbot is a step beyond tutorials that are provided when a user logs in for the first time. It can offer a dynamic experience that allows customers to ask questions and gives them the opportunity to interact with other users.
Frictionless post-sales support
Research has shown that customer churn is reduced by 67% when companies resolve customer issues within the first interaction 5. An AI-powered chatbot is able to provide instant assistance for customers who have problems or encounter issues. Chatbots can be deployed via secure portals or a dedicated support email address.
Predicting customer pain points and intervening
An AI chatbot, based on historical churn analysis can determine when a customer is most at risk. It does this by analyzing their behavior, performance, and other factors. This allows SaaS companies to be proactive and give the information and tools customers need to stay happy and engaged.
Also read: What is the Right SaaS for Startup Business Structure, AI and IoT?
An AI chatbot can trigger highly targeted and targeted upsell campaigns by analyzing behavioral and lifecycle data. To gain customer interest, the bot would first engage with the customer before moving on to the next level.
According to 86% of B2B CMOs believe customer experience will become more important in the future 6. SaaS companies need to prioritize customer support over product and innovation as they face increased competition. SaaS companies can compete on customer experience by integrating AI into their workforce.