Winning back churned users, is it worth it?
My time is split evenly between acquiring new users and making existing customers happy (so they stay). But now, I'm wondering if this should be a tripart split, and I should also be paying attention to churned users.
In the past, I've tried a win-back campaign for churned users by offering them a discount. But it had 3% conversion.
Should I focus on re-engaging churned users for my SaaS?
If so, what are best strategies?
If not, why?
(By churned users, I mean those who stopped paying)
Focusing on re-engaging churned users can have several benefits for your SaaS. Mainly, it's generally easier and less expensive to win back a former customer than to acquire a new one. Strategies could include identifying reasons for churn, creating targeted marketing campaigns, offering a free trial or extended trial period, and providing exceptional customer service. By tailoring your efforts to address specific concerns and interests, you may be able to win back some of these users and improve the long-term health of your business.
It's always cheaper to retain compared to attain.
"Acquiring new customers can be costly, as it often requires marketing and advertising efforts to attract new leads. In contrast, retaining existing customers can be much more cost-effective, as they are already familiar with your brand and may be more likely to make repeat purchases. According to research by Bain & Company, increasing customer retention rates by just 5% can increase profits by 25-95%."
https://churnlower.com/articles/the-benefits-of-addressing-churn-for-long-term-business-success/
The article was so helpful, thanks so much!