3. Retention  >  Interview Customers Often

Interview customers often to reduce SaaS churn

Your customers are the best judge. Interviewing them will help you identify loopholes. You get data for decision-making. You get to know what exactly you should do to improve user experience and reduce churn.

●● INTUITIVENESS

Woodpecker

Woodpecker conducted 65 interviews to get feedback from customers.

Groove

Groove increased the conversion rate by 2% when it tweaked its copy based on feedback from customer interviews.

Moz

Moz increased sales by 52% after conducting live interviews with customers.

How to use the technique

  • Identify triggers for interviews. For example, when a customer uses a feature, when a customer updates information, when a customer unsubscribes from the newsletter, etc. When a customer has experienced something or an action is taken, you’re more likely to get real feedback. Refer to our free churn optimization framework for step-by-step instructions. 
  • Customize interviews. Don’t be a robot. Refer to customer’s recent activities and usage details in the interview. This will improve the response rate and engagement.
  • Ask relevant actionable questions that will help improve retention and reduce churn rate. Questions that your data analysis team cannot use for inference are useless.
  • Conduct interviews from all types of customers. This is a must. Satisfied customers tell you what they like while dissatisfied customers identify potential loopholes.
  • Have a schedule. Conduct two interviews a year per customer. It lets you keep them engaged and will reduce churn.
  • Discuss – not ask. Don’t name it an interview explicitly. It will reduce the response rate. Just call your customers and have friendly chitchat.
  • Measure results and use data for decision-making. After making a change based on customer feedback, measure performance. Did it really reduce churn? Collect feedback again. It is a continuous process. You can read this free actionable guide to improve your analytic skills.

Mistakes to avoid

  • Not conducting interviews with happy customers. It’s a big mistake. Your happy customers are more likely to share honest and actionable feedback than unhappy customers. Don’t ignore them.
  • Making it too formal. A formal question answer call will ruin the response rate. Keep it informal to get better feedback.

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Research evidence

An article published in Harvard Business Review by Peter Kriss discussed the importance and value of customer experience – and measuring it. Customers having the best experience with a brand spend 140% more than customers having a poor experience with the same brand. Collecting actionable data from your customers (both happy and unhappy) is the key to increase retention.

140%

This is how much more customers having the best experience spend in comparison with people having a poor experience with the same brand.


Related techniques SEE ALL THE TECHNIQUES >

Implement with our proven SaaS Churn Optimization Framework

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