Losing a customer, especially one of significant size, can be a painful experience for any SaaS business. However, customer churn doesn't always mean they are gone forever. Many businesses overlook the potential for reacquisition, viewing churned customers as a closed chapter. SaaStr suggests a proactive and strategic approach: categorize them into a "Get Them Back" bucket and implement a dedicated reacquisition program designed to bring them back into the fold.
Strategic Reacquisition: A Multi-faceted Approach
The journey to winning back churned customers involves more than just a casual outreach. It requires a structured plan that combines targeted marketing efforts with timely sales follow-ups, all while maintaining a customer-centric philosophy.
1. Implement a Dedicated Reacquisition Marketing Program
The first step is to segment churned customers into a specific marketing bucket. This isn't about generic campaigns; it's about crafting specialized content, webinars, and offers tailored specifically for ex-customers. The goal is to address the reasons they left and highlight new value propositions or improvements. Experienced VPs of Marketing often have a playbook for this, but if not, it's a critical strategy worth developing for long-term growth.
Beyond marketing, strategic sales follow-ups are crucial. SaaStr recommends two key touchpoints:
- 90-Day Check-in: Around three months after churn, initiate a follow-up to gauge their interest in returning. Crucially, this initial outreach should come with no immediate cost or obligation to the customer.
- 8-9 Month Re-engagement: A second follow-up around eight to nine months can be highly effective. This timing is often opportune, as it might coincide with a competitor's renewal cycle, presenting a chance to "steal" the deal back.
Customers often churn due to various reasons—a bad experience with a competitor, internal changes within their organization, or even a new leader who might already be familiar with your product or seeking a fresh solution. These scenarios create prime opportunities for re-engagement.
2. Facilitate a Graceful Exit
When a customer decides to leave, how you handle their departure significantly impacts their willingness to return. It's paramount to let them go gracefully. This means allowing them full access to their data without friction, avoiding any threats, or engaging in manipulative tactics. A difficult or punitive exit experience will only solidify their decision to stay away, ensuring they only return if absolutely forced to.
3. Maintain a Foothold with Partial Usage
Even if a customer churns a significant portion—or even most—of their business, consider allowing them to retain a small "pocket of users" on your application. While this might not seem to make a substantial difference in the short term, it serves a strategic purpose. These remaining users can become internal champions, providing a valuable foothold within the organization. This connection can be leveraged later to potentially win back the entire account, even if you initially lose 60%, 80%, or 90% of their business.
By adopting these strategies, SaaS companies can transform churned customers from a permanent loss into a valuable pool for future reacquisition, demonstrating that a customer relationship is rarely truly over.
For more insights on defining and managing churn, consider watching the SaaStr video: 10 Rules for Defining Churn with ForgeRock and Solarwinds.
For further reading, explore The Ultimate Guide to Hiring a Great VP of Sales.
