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Customer Engagement In SaaS Companies

Published on September 25, 2021
Last modified on March 22, 2022
Customer engagement in saas

If we look at the sales process, it does not start with direct pitching, it starts with research about the customer to provide him with the best possible solution and finally, it never ends with customer onboarding, it continues till the customer becomes a brand advocate.

Customer retention is very important as research indicates it is more profitable to retain a customer than to get a new one. For all this to happen it is very important that your organization not only focuses on the core product but gives equal emphasis on customer engagement and experience.

Before we start talking about SaaS customer engagement, it is very important that we understand its actual meaning.

What is customer engagement? 

In his definition of customer engagement, Paul Greenberg states, “Customer engagement is the ongoing interactions between company and customer, offered by the company, chosen by the customer.”

According to the definition, it is clear that how we communicate with our customers will definitely affect our future growth.

Let’s take a look at some of the statistics showing the relevance of customer engagement.

  • Gallup research shows that a fully engaged customer represents 23% more revenue than average.
  • A study by Hall and Partners’ “Engager” shows that up to 2/3rd of a brand’s profits may rely on effective customer engagement.
  • Another customer engagement study by Ray Wang of Constellation Research found that “companies who have improved engagement increase cross-sell by 22%, drive up-sell revenue from 13% to 51%, and also increase order sizes from 5% to 85%.”

The question now is, “How?” Before we answer that, it is crucial that we understand the few metrics that allow us to know how engaged our users are.

Customer Retention Score

If your customer is coming back it means you’ve been successful in hooking them to your product and they see value in what you’re providing.

Net Promoter Score (NPS)

The purpose of NPS is to track your customer loyalty to your brand and how likely they are to recommend your product to their peers.

First Contact Resolution Rate (FCRR)

FCRR means, a customer’s issue should be resolved in a single interaction – could be a phone call, in a single response via email or social media or a single live chat session. It’s important to make sure that your customers do not have to follow up again and again.

Customer Churn Rate

If your churn rate is high, you are very likely doing something wrong in terms of customer service. Customers are generally loyal, only an unhappy customer goes hunting for other sellers. 

It is very important that you understand customer needs, sort out any issues, notify your customers about any new releases and even ask for feedback to understand where you’re lacking. Paying attention to every little thing about your customers is essential to reducing churn.

Daily Usage

It is very important to monitor whether your customers are using your solution on a regular basis and how it is trending over time. Things like NPS, LTV, query resolution rate are all important but knowing how frequently your customers are using your product is the most important metric in SaaS.

Monthly Recurring Revenue (MRR)

It will let you know how much growth and expansion is happening within your existing client base. If MRR is increasing, without adding new clients indicate your customers see value in what you’re providing.


It’s important to monitor how effective your content/materials surrounding your product are in engaging your customers.

After you make all the above calculations for your business then definitely you should move forward with different strategies to increase saas customer engagement.

In order to boost satisfaction and retention, all SaaS companies should aim to educate and entertain their users. The goal here is to compel the customers to log in to your platform every day. 

Also Read: How To Build A Great Product Experience?

How to enhance SaaS customer engagement?

Here are some strategies we can use to gain saas user engagement:

Triggered messages

For any business to run smoothly, timely communication with the customers plays a vital role. Every time you will have to make the customer realise that you are there for them and their preference is your priority

For maintaining the same you must definitely be sending different types of messages to them be it welcome messages, product updates, thank you messages or even emails, but to stand out from the competition you should definitely take the help of the data to make your message more relevant and valuable to the customers. 

Herein triggered messages direct the business towards personalization which is one thing that interests the customers every time. 

A triggered message can, for example, have a push effect on customers who signed up but didn’t log in for three or four days continuously. By sending him a personalized message, the business can definitely nudge him, and, with a little more effort from the company, the churn rate can be reduced.

 In-app chat feature

For once, imagine you’re in a store to buy a shirt and everyone is occupied with their work. There is nobody to assist you with sizing, nobody to direct you to the trial room, and nobody to answer your questions.

The first thing you think about is leaving the store.

Would you want the same frustration to be felt by your customers? If not, then the chatbot feature is very important for your SAAS business. Whenever a customer lands on your platform, it is very important that all his queries are answered immediately.

Free training

After investing money in a new software if a customer is not aware of how to operate the software he will definitely feel that he has committed a blunder and he would never come back to your business. Provide free training to the new customers on how to operate the software and navigate through the same. 

 Video tutorials

After the purchase has been made by the customer there are many things to divert him from your software, there is work, family and many such external forces which take away his attention from your software.

Therefore, while these external forces do their job, you don’t stop doing yours, as you provide reasons for users to come back to your software.

While blogs, ebooks guides are common ways that have been used to get saas user engagement, here it is important to state that video format is the best format to get the attention of anybody.

Therefore creating engaging and knowledgeable videos which have a stimulating effect on the customers should be prepared and timely delivered to the customers.

 Rewards and incentives

Who doesn’t like gifts? Rewards and incentives drive the customers to stay with your business for a long time. Timely recognition of the customers and letting them know that they are valued are very important.

For example, the incentive can be as simple as letting the frequent customers try out your latest features before anybody else, this creates a positive impression in the customer’s mind and in turn, helps you to improve customer retention.

Feedback and action

It is rightly said that change is the only constant. No matter how good your software is, the customer will eventually get bored if you don’t bring in new improved features in your software. 

Therefore rather than letting your software depreciate in the eyes of customers, bring out features that the customer is longing for. Periodic customer feedback and surveys will let you know what your customers are looking for.


The majority of SaaS companies need to measure some metrics, if not all, to measure customer engagement and use the resultant data to improve product usage, increase customer retention, and improve conversions.

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