The HotLine Magazine Archives
For The Profession of Cloud/SaaS Product Support
SaaS/Cloud company management teams have always recognized the economic necessity of spending a certain amount of money to acquire a customer.  Customer Acquisition Cost (CAC) is a standard part of the business plan.  What is not so readily acknowledged is that spending money to retain customers is also a necessary aspect of the new business model.  It’s unfortunately very common…

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The SaaS & Support Project research into the common causes of lost customer relationships showed that the most commonly identified “departure driver” was Divorce. Either the management of the customer company had changed, resulting in the loss of the internal champion, or the relationship had become distant. One SaaS company CEO described this scenario as a loss of contact "at the top' of the food chain, with upper management either leaving or forgetting why the system was implemented. Three significant questions come immediately to mind: 1) Why are SaaS vendors being taken by surprise? 2) What can be done to save the relationships? 3) How can CEOs stop setting their companies up for churn?

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