{"id":10177,"date":"2023-10-18T19:07:05","date_gmt":"2023-10-18T19:07:05","guid":{"rendered":"https:\/\/userpilot.com\/blog\/customer-retention-2021\/"},"modified":"2026-02-25T15:14:14","modified_gmt":"2026-02-25T15:14:14","slug":"saas-customer-retention","status":"publish","type":"post","link":"https:\/\/userpilot.com\/blog\/saas-customer-retention\/","title":{"rendered":"SaaS Customer Retention: Strategies, Examples and Tools"},"content":{"rendered":"<p>Are you looking to enhance your SaaS customer retention rates and keep your business thriving?<\/p>\n<p>In a nutshell, it comes down to two key steps: investing in top-notch <a href=\"https:\/\/userpilot.com\/solutions\/customer-retention\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer retention<\/a> software to boost user engagement and combat churn, and adopting a comprehensive array of customer retention strategies and tactics.<\/p>\n<p>But, of course, there&#8217;s more to the story than that.<\/p>\n<p>If you&#8217;re eager to dive deeper into the world of customer retention, keep reading for a detailed guide on how to achieve lasting success.<\/p>\n<h2>What is customer retention?<\/h2>\n<p>In SaaS, customer retention is the sum of all activities a business undertakes to keep its users and to make its existing customers more profitable.<\/p>\n<p>The results of that work are often expressed and reported in the percentage rate of <strong>customers retained <\/strong>over <strong>total customers<\/strong> for a <strong>given period of time<\/strong> \u2013 or \u201c<a href=\"https:\/\/userpilot.com\/blog\/customer-retention-rate-metrics-saas\" target=\"_blank\" rel=\"noopener noreferrer\">customer retention rate<\/a>\u201c.<\/p>\n<p>How to measure customer retention?<\/p>\n<h2><strong>Why is SaaS customer retention important?<\/strong><\/h2>\n<p>Winning new customers is exciting, but customer retention is where SaaS companies <em>actually make money<\/em>.<\/p>\n<p>Consider these benefits:<\/p>\n<ul>\n<li>Customer retention is crucial for the health of a SaaS business because it increases customer lifetime value.<\/li>\n<li>Retaining customers is more cost-effective than acquiring new ones, with acquisition costs being significantly higher.<\/li>\n<li>High customer retention leads to benefits such as repeat purchases, referrals, and valuable customer feedback, and it can be achieved by prioritizing customer satisfaction, building strong relationships, offering excellent customer support, continuous innovation, transparency, and effective communication.<\/li>\n<\/ul>\n<p><!--ARCADE EMBED START--><\/p>\n<div style=\"position: relative; padding-bottom: calc(56.8027% + 41px); height: 0px; width: 100%;\"><iframe style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; color-scheme: light;\" title=\"Churn Prevention\" src=\"https:\/\/sw11.userpilot.com\/WkWUNQj7WT4QoqhLSQbE?embed&amp;embed_mobile=tab&amp;embed_desktop=inline&amp;show_copy_link=true\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>\n<p><!--ARCADE EMBED END--><\/p>\n<h2><strong>When to focus on customer retention?<\/strong><\/h2>\n<p>You should always be focusing on <a href=\"https:\/\/userpilot.com\/blog\/customer-retention-strategies\/\" target=\"_blank\" rel=\"noopener noreferrer\">trying to retain customers<\/a>!<\/p>\n<p>But that means different things at different stages in your business\u2019s development.<\/p>\n<h3><strong>Early-stage SaaS<\/strong><\/h3>\n<p>At this point, you probably won\u2019t have solid benchmarks for successful customer <a href=\"https:\/\/userpilot.com\/blog\/saas-metrics-101-ltv-lifetime-value\/\" target=\"_blank\" rel=\"noopener noreferrer\">LTV<\/a> or a consistent CAC.<\/p>\n<p>So it\u2019s key to start establishing these:<\/p>\n<ul>\n<li>Making sure that new users go through primary <a href=\"https:\/\/userpilot.com\/blog\/best-user-onboarding-experience\/\" target=\"_blank\" rel=\"noopener noreferrer\">onboarding<\/a> as quickly as possible.<\/li>\n<li>That they experience value fast (ie that they Activate with a minimal <a href=\"https:\/\/userpilot.com\/blog\/empty-state-time-to-value\/\" target=\"_blank\" rel=\"noopener noreferrer\">Time To First Value<\/a>).<\/li>\n<li>They come back after their first visit.<\/li>\n<li>And by comparing acquisition campaigns and channels against early churn \u2013 to see where \u201cgood\u201d and \u201cbad\u201d users are coming from.<\/li>\n<\/ul>\n<h3><strong>Growth stage SaaS<\/strong><\/h3>\n<p>Once you\u2019re in the growth stage, you\u2019ll have those benchmarks and you\u2019ll be able to compare different segments and cohorts of users against them.<\/p>\n<p>Now your priority is making sure that users continue to realize value by repeated use of your app:<\/p>\n<ul>\n<li>By driving <a href=\"https:\/\/userpilot.com\/blog\/feature-adoption-101\/\" target=\"_blank\" rel=\"noopener noreferrer\">new feature adoption<\/a>, to add sources of value.<\/li>\n<li>Making it easy for teams to onboard new members to their specific use cases.<\/li>\n<li>Looking for opportunities for customer <a href=\"https:\/\/userpilot.com\/blog\/account-expansion-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">expansion<\/a> (upsells, cross-sells, etc) that will benefit those users.<\/li>\n<li><a href=\"https:\/\/userpilot.com\/blog\/cohort-analysis-for-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">Cross-referencing performance against KPIs between segments and cohorts<\/a>, to hypothesize what the characteristics of your most loyal customers are and of those that you\u2019re losing early \u2013 so as to bring in more or the former and improve the experience for the latter.<\/li>\n<\/ul>\n<h3><strong>Maturity stage SaaS<\/strong><\/h3>\n<p>At this point, customer retention also needs to focus on keeping hold of your long-term users \u2013 the power users whose workflows make regular use of your tool; and the advocates who will refer you to friends and colleagues:<\/p>\n<ul>\n<li>By collecting customer <a href=\"https:\/\/userpilot.com\/blog\/user-feedback-survey-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">feedback<\/a> from these users and incorporating it into product roadmaps.<\/li>\n<li>Providing advanced one-on-one or webinar training sessions.<\/li>\n<li>Adding new features that can provide new ongoing sources of value.<\/li>\n<\/ul>\n<h2><strong>How do you measure customer retention?<\/strong><\/h2>\n<p>\u201cWhat gets measured gets managed,\u201d said management guru Peter Drucker.<\/p>\n<p>And the best customer retention factors to keep track of will depend very much on the specifics of your business.<\/p>\n<p>If you have a high-ticket product that quickly recoups CAC, you might be inclined not to worry about customer loyalty. But if it\u2019s also really tough and expensive to win new users, you might have a different perspective!<\/p>\n<p>There is no one customer retention metric that can tell you everything you might need to know. The <a href=\"https:\/\/userpilot.com\/blog\/user-retention-metrics\/\" target=\"_blank\" rel=\"noopener noreferrer\">best KPIs for your business <\/a>depend very much on your goals (growth, profitability, maximizing average revenue per user, etc) \u2013 and it\u2019s almost always going to be sensible to look at a variety of customer retention metrics.<\/p>\n<h2><strong>Important SaaS retention metrics for SaaS<\/strong><\/h2>\n<p>We\u2019ve <a href=\"https:\/\/userpilot.com\/blog\/customer-retention-rate-metrics-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">written about this in much more depth before<\/a>, but as this is the Ultimate Guide, we\u2019ll go back over the most important ones here.<\/p>\n<h3><strong>Customer Retention Rate<\/strong><\/h3>\n<p>Your <a href=\"https:\/\/userpilot.com\/blog\/customer-retention-rate-metrics-saas\" target=\"_blank\" rel=\"noopener noreferrer\">customer retention rate <\/a>is the percentage of users you manage to keep over a given period of time. It matters because it gives insight into how users feel about renewing their subscription to your service.<\/p>\n<p>We\u2019ve already looked at this metric at the beginning of the blog, but here it is again:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/755ba435-be59-4650-b26b-d902434bf460.png\" \/><\/p>\n<p>That is:<\/p>\n<blockquote><p><em>Customer Retention Rate (%) = ( # paid users at end of time period \u2013 # acquired users during the time period\/ # paid users at start of time period) x 100<\/em><\/p><\/blockquote>\n<h3>Customer acquisition cost<\/h3>\n<p><a href=\"https:\/\/userpilot.com\/blog\/product-marketing-kpi\/\" target=\"_blank\" rel=\"noopener noreferrer\"><u>Customer Acquisition Cost<\/u><\/a> (CAC) is the average amount of money spent to acquire new customers. In SaaS, it\u2019s relevant only to customer acquisition costs for paying customers.<\/p>\n<p>CAC is your total sales and marketing expenses divided by the number of new customers acquired.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/bcb543f6-36e7-4d12-930d-1d35e0eec931.png\" \/><\/p>\n<p>CAC allows you to keep you to make important budgeting decisions and understand what strategies would bring in the best results at minimum cost.<\/p>\n<p>You can use the <a href=\"https:\/\/userpilot.com\/blog\/ltv-cac-ratio-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">LTV: CAC ratio<\/a> to understand the profitability of a customer and how efficiently you\u2019re achieving it. For example, a ratio is 1:1 means that the customer is generating the same amount that you spent on gaining them.<\/p>\n<blockquote><p>Customer acquisition cost (CAC) = Total Cost of Acquisition\/ Number of New Customers Acquired<\/p><\/blockquote>\n<h3><strong>Customer churn rate<\/strong><\/h3>\n<p>The customer churn rate is the inverse of the retention rate. It looks at the percentage of customers lost over a period.<\/p>\n<p>Once you understand how many customers are giving up on your app, you can start devising <a href=\"https:\/\/userpilot.com\/blog\/reduce-churn-rate\/\" target=\"_blank\" rel=\"noopener noreferrer\">strategies<\/a> for making sure they experience more value, faster that will stop them from churning.<\/p>\n<p>Knowing <strong><em>when<\/em><\/strong> customers are leaving is the first step to understanding <strong><em>why<\/em><\/strong>.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/88e78652-b0e2-4196-aae2-7ccbeb167082.png\" \/><\/p>\n<p>&nbsp;<\/p>\n<blockquote><p><em>Customer Churn Rate (%) = (# paid users lost during time period \/ # paid users at start of time period) x 100<\/em><\/p><\/blockquote>\n<h3><strong>Customer lifetime value (LTV)<\/strong><\/h3>\n<p>This is another metric we\u2019ve already talked about. It\u2019s critically important because it shows:<\/p>\n<ul>\n<li>If your marketing activities are unviable (when <a href=\"https:\/\/userpilot.com\/blog\/ltv-cac-ratio-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">CAC exceeds LTV<\/a>)<\/li>\n<li>What the potential profitability of your business might be<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/cdeac479-f986-4f6b-b10b-7116b639c36e.png\" \/><\/p>\n<blockquote><p><em>Life Time Value = Average Revenue Per User (ARPU) \/ Churn Rate<\/em><\/p><\/blockquote>\n<h3><strong>Customer health score<\/strong><\/h3>\n<p>Customer health score \u2013 or <a href=\"https:\/\/userpilot.com\/blog\/customer-engagement-score\/#What-is-customer-engagement-in-SaaS?\" target=\"_blank\" rel=\"noopener noreferrer\">customer engagement score<\/a> \u2013 is a more complex metric than those we\u2019ve looked at so far.<\/p>\n<p>It aims to provide a measure of how engaged a customer is with your product (how \u201chealthy\u201d a customer is) by applying a weighting to various actions and operations carried out in your app within a certain time frame, and adding them all together.<\/p>\n<p>The higher a customer\u2019s health score, the less likely they <em>should<\/em> be to churn \u2013 because the weightings you apply will be geared towards highlighting actions that generate value and progress users along the customer journey.<\/p>\n<p>By keeping track of customer health <a href=\"https:\/\/userpilot.com\/blog\/customer-health-score\/\" target=\"_blank\" rel=\"noopener noreferrer\">scores<\/a> (usually by segment or cohort), you can get a sense of how to make sure your users realize the value and stick around for a long time.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/4b1e1971-2753-4f0c-8d43-5f2db9fa78ab.png\" \/><\/p>\n<blockquote><p><em>Customer Health Score = Total Action Value 1 +Total Action Value 2 + Total Action Value 3 + etc<\/em><\/p>\n<p><em>Where Total Action Value = Action Impact (weighting) x Action Frequency within time period.<\/em><\/p><\/blockquote>\n<h3><strong>Monthly recurring revenue (MRR) and Annual recurring revenue metrics<\/strong><\/h3>\n<p>MRR is the amount of revenue you can expect to earn from all your active customers per month. Accordingly, annual recurring revenue (ARR) is calculated annually.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/monthly-recurring-revenue-saas-analytics_b1262affa9f8ab25e62255a4bff47199_800.png\" alt=\"How to claculate monthly recurring revenue\" \/><\/p>\n<blockquote><p>MRR = ARPU x # of accounts in a month<\/p><\/blockquote>\n<p>MRR is one of the key <a href=\"https:\/\/userpilot.com\/blog\/customer-success-metrics-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer success metrics<\/a> for SaaS businesses because it helps you estimate future cash flows and the overall profitability of your SaaS business.<\/p>\n<p>Moreover, calculating MRR also helps you calculate <a href=\"https:\/\/userpilot.com\/blog\/customer-retention-rate-metrics-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">MRR churn<\/a>, which is another metric that measures how much revenue you lost and the overall effect of losing that amount. The lower the MRR churn, the more opportunities for <a href=\"https:\/\/userpilot.com\/blog\/saas-metrics-growth\/\" target=\"_blank\" rel=\"noopener noreferrer\">rapid growth<\/a>.<\/p>\n<h2><strong>11 SaaS retention strategies<\/strong><\/h2>\n<p>In this section, we\u2019ll outline customer retention strategies that should definitely play a part in your efforts to improve customer retention.<\/p>\n<h3>Personalize customer onboarding process to exceed customer expectations<\/h3>\n<p>Identifying your customers\u2019 Jobs to Be Done (<a class=\"editor__link\" href=\"https:\/\/userpilot.com\/blog\/jtbd-product-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">JTBD<\/a>) helps you understand their expectations and tailor the <a class=\"editor__link\" href=\"https:\/\/userpilot.com\/blog\/onboarding-flow-best-practices\/\" target=\"_blank\" rel=\"noreferrer noopener\">onboarding<\/a> to their specific needs. As a result, customers will be more likely to stay and continue using your product.<\/p>\n<p>When collecting JTBD data, avoid burdening users with too many questions or you risk creating signup friction. Stick to the data required to provide a personalized customer onboarding experience.<\/p>\n<p>Here is how Notion uses a simple survey that asks the key questions so they can understand the users\u2019s JTBD.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/notion-jtbd-survey64ed8154-5c4a-462f-92d4-c305444bff09_08a2539fbf42cba9999b0caacea2942e_2000.png\" alt=\"Notion-JTBD-survey64ed8154-5c4a-462f-92d4-c305444bff09\" \/><\/p>\n<p>Use the JTBD data you collected and build a branched <a class=\"editor__link\" href=\"https:\/\/userpilot.com\/blog\/app-onboarding-best-practices\/\" target=\"_blank\" rel=\"noreferrer noopener\">onboarding experience<\/a> that guides users through the key features for their use case.<\/p>\n<p>With this approach, you\u2019ll reduce the <a class=\"editor__link\" href=\"https:\/\/userpilot.com\/blog\/time-to-value\/\" target=\"_blank\" rel=\"noreferrer noopener\">time to value <\/a>and increase product adoption\u2014both factors contribute to high retention rates.<\/p>\n<p>Notion takes branched onboarding a notch higher, delivering<a class=\"editor__link\" href=\"https:\/\/userpilot.com\/blog\/onboarding-flow-best-practices\" target=\"_blank\" rel=\"noreferrer noopener\"> onboarding flows<\/a> based on individual user accounts or team accounts:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/notion-branched-onboardingda1e98e5-0c27-44cd-818a-8c908670ee8a_f90667785c25e5e6d400c32d571aef4e_2000.png\" alt=\"Notion-branched-onboarding\" \/><\/p>\n<p>If you select the team option, you\u2019ll then be prompted to start with projects because that\u2019s a major use case for teams using Notion:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/notion-onboarding-page8449af82-114f-4984-8221-d9c59b03f92b_f71ab42a0c936bb9c2fe09eca0af5ef2_2000.png\" alt=\"Notion-onboarding-page\" \/><\/p>\n<p>Similarly, users who click the individual account option are taken to a page more suitable for their needs.<\/p>\n<h3><strong>Use gamification for increasing customer retention<\/strong><\/h3>\n<p>Gamified experience provides the dopamine rush that encourages users to explore your product.<\/p>\n<p>Adding gamification to your <a class=\"editor__link\" href=\"https:\/\/userpilot.com\/blog\/improve-conversions-onboarding-checklist\/\" target=\"_blank\" rel=\"noreferrer noopener\">checklists<\/a> is a good way to ensure users stay long enough to tick every item on the list. Do this by attaching <a class=\"editor__link\" href=\"https:\/\/userpilot.com\/blog\/progress-bar-ui-ux-saas\/\" target=\"_blank\" rel=\"noreferrer noopener\">progress bars<\/a> to your checklists. Users will be more driven to complete their tasks when they see how far they\u2019ve come and how many steps are left.<\/p>\n<p>Also, it\u2019s a good idea to add the time it takes to complete a task under each task. Your users will know what to expect and won\u2019t easily give up on tasks.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/gamified-checklista61a40f0-5cd4-4e71-91ce-fc2a45acc890_291a911ed7f8de288e26f2b839167aa9_2000.png\" alt=\"Gamified-checklista\" \/><\/p>\n<p>Your checklist items play a crucial role. Don\u2019t select randomly\u2014focus on 3-5 key tasks that are relevant to that specific user and will bring them to the <a class=\"editor__link\" href=\"https:\/\/userpilot.com\/blog\/the-aha-moment-for-product-onboarding-activation\/\" target=\"_blank\" rel=\"noreferrer noopener\">Aha! Moment<\/a> quickly.<\/p>\n<h3><strong>Use secondary onboarding to retain customers<\/strong><\/h3>\n<p>Primary onboarding is the process of getting new users to the point where they get value from your app (Activation). <a href=\"https:\/\/userpilot.com\/blog\/secondary-onboarding\/\" target=\"_blank\" rel=\"noopener noreferrer\">Secondary onboarding<\/a> is all about upskilling current customers so that they get <strong><em>more and more<\/em><\/strong> value over time.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/f0eaf587-2a6b-4b76-a300-65e33d80b1bb.png\" \/><\/p>\n<p><a href=\"https:\/\/userpilot.com\/blog\/guide-to-customer-onboarding-in-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">Onboarding<\/a> users progressively is an important part of providing a good customer experience.<\/p>\n<p>In the bad old days of SaaS, new users would be forced to sit through comprehensive <a href=\"http:\/\/userpilot.com\/blog\/product-tours-tools-software\/\" target=\"_blank\" rel=\"noopener noreferrer\">Product Tours<\/a>, demonstrating every facet of an app, before they were able to start using it.<\/p>\n<p>That\u2019s not only annoying, but it\u2019s also counter-productive.<\/p>\n<p>By showing <strong><em>everything<\/em><\/strong> an app can do to a user who has no idea how to get started, Product Tours slow down Time To First Value.<\/p>\n<p>Clever product managers, therefore, break onboarding down into \u201cneed to know\u201d chunks and provide it as and when it\u2019s needed.<\/p>\n<p>This can be done reactively (in a resource that a user can refer to when they\u2019re ready) or proactively (by tracking behavioral cues in-app and triggering contextual experiences).<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/208a127d-ecae-49e6-8b96-52cd3dceacd9.png\" \/><\/p>\n<p><a href=\"https:\/\/userpilot.com\/blog\/in-app-messaging\/\" target=\"_blank\" rel=\"noopener noreferrer\">In-app messaging<\/a> is extremely powerful for secondary onboarding, as it allows you to solve problems it looks like they\u2019re experiencing and to point them to features and solutions that are likely to benefit them.<\/p>\n<h3>Collect user feedback with customer satisfaction surveys and improve customer experience<\/h3>\n<p>Collect and analyze satisfaction data through the <a class=\"editor__link\" href=\"https:\/\/userpilot.com\/blog\/customer-satisfaction-survey-best-practices\/\" target=\"_blank\" rel=\"noreferrer noopener\">CSAT survey<\/a> triggered at different points in the user journey.<\/p>\n<p>Using this data to make targeted improvements in areas that affect satisfaction can directly impact customer retention rates.<\/p>\n<p>How to roll out CSAT surveys customers actually respond to?<\/p>\n<p>First, ensure your questions are clear enough. Make it easy for users to respond by clicking on emoticons, numbers, or symbols that represent their feelings.<\/p>\n<p>More importantly, trigger your CSAT surveys contextually. For example, the best time to survey users about your support team is immediately after they finish contacting support, not days after.<\/p>\n<p>Userpilot has customizable <a class=\"editor__link\" href=\"https:\/\/userpilot.com\/product\/user-feedback\/\" target=\"_blank\" rel=\"noreferrer noopener\">CSAT survey templates<\/a> to save you time:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/csat-survey-template-customer-retention-strategies84723e9b-15ba-47fe-9f3f-f8971574f49a_e561d6e87d32808f0f39d394f33fae82_2000.png\" alt=\"CSAT-survey-template-customer-retention-strategies\" \/><\/p>\n<h3>Offer valuable upsells to an existing customer contextually<\/h3>\n<p>Don\u2019t miss opportunities to upsell and cross-sell to your existing users.<\/p>\n<p>Once again, this is best done in-app \u2013 when a user\u2019s actions indicate a need for something else you have to offer.<\/p>\n<p>If your product is usage-based, adding an upgrade button when the user approaches the account limits is a great way to be contextual and remove upgrade friction.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/5921e46d-cb7f-43ad-a8cd-e6f69174980f.png\" \/><\/p>\n<h3>Offer trials of premium features<\/h3>\n<p>Use in-app modals to alert a user if it looks like they\u2019re trying to use a premium feature they don\u2019t have access to. Offer a time-limited free trial to get them hooked on it!<\/p>\n<p>This is a great way to convert freemium accounts into paying customers and increase retention but also to showcase the value of upgrading to a higher account that gives the user access to additional features.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/e790cda0-298a-4a5c-b2b0-beb714181661.png\" \/><\/p>\n<h3>Increase customer retention rates by offering new features<\/h3>\n<p>Regularly inform your existing customers about <a class=\"editor__link\" href=\"https:\/\/userpilot.com\/blog\/new-feature-onboarding\/\" target=\"_blank\" rel=\"noreferrer noopener\">new features<\/a> or updates in your product.<\/p>\n<p>By showcasing the value of these additions and how they can benefit current users, you encourage continued engagement with relevant features, which leads to retaining customers for longer. The customer lifetime value rises as a result, boosting your revenue.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/d822b4da-310e-4dc9-8141-53edba8d4e80-scaled.png\" \/><\/p>\n<p>&nbsp;<\/p>\n<h3>Use funnel analysis to understand friction across the customer journey<\/h3>\n<p>Employing funnel analysis helps pinpoint where users drop off or face challenges within the user journey.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/f5dbf760-6e1f-4383-b4ff-65f9c7d71b32.png\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>Pair funnel analysis with other <a class=\"editor__link\" href=\"https:\/\/userpilot.com\/blog\/customer-retention-analytics-ultimate-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">analytics data<\/a> to really understand what\u2019s going on. Once you have sufficient insight, launch in-app help guides to address friction and provide smoother user experiences.<\/p>\n<h3>A\/B test different in-app messages and make data-driven decisions<\/h3>\n<p>When it comes to making improvements to your product, don\u2019t just follow your gut. <a href=\"https:\/\/userpilot.com\/blog\/product-experiment-how-to\/\" target=\"_blank\" rel=\"noopener noreferrer\">Follow the data<\/a>.<\/p>\n<p>Use <a href=\"https:\/\/userpilot.com\/blog\/ab-testing-product-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">A\/B testing<\/a> to put different variants of new features, UIs, or workflows to the test. Then deploy the version that gets the best results!<\/p>\n<p>This should be hard-baked into your whole approach to product development.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/b430ef73-5cbe-4ce0-b7bf-0f9e5967fbe2.png\" \/><\/p>\n<p>Want to start testing different in-app experience flows to improve retention? <a href=\"https:\/\/userpilot.com\/userpilot-demo\" target=\"_blank\" rel=\"noopener noreferrer\">Get a Userpilot demo and run A\/B tests with one click.<\/a><\/p>\n<p>So, for example, when you add a new onboarding experience, test two versions against matching customer segments.<\/p>\n<p>This will ensure you are not implementing suboptimal improvements when you could have given more value to more customers with a slight change.<\/p>\n<h3>Monitor customer retention rates with a cohort table<\/h3>\n<p><a href=\"https:\/\/userpilot.com\/blog\/cohort-retention-analysis\/\">Cohort retention analysis<\/a> is the process of <a href=\"https:\/\/userpilot.com\/blog\/customer-engagement-score\/\" target=\"_blank\" rel=\"noopener noreferrer\">tracking user engagement <\/a>with the product over time. However, instead of looking at the user population as a whole, it looks at <a href=\"https:\/\/userpilot.com\/blog\/cohort-analysis-versus-segmentation\/\" target=\"_blank\" rel=\"noopener noreferrer\">specific user groups <\/a>linked to specific events or timeframes.<\/p>\n<p>Use cohort<a href=\"https:\/\/userpilot.com\/blog\/retention-analysis\/\" target=\"_blank\" rel=\"noopener noreferrer\"> retention analysis<\/a> to evaluate their strategies and analyze long-term user behavior trends to<a href=\"https:\/\/userpilot.com\/blog\/drive-retention\/\" target=\"_blank\" rel=\"noopener noreferrer\"> improve customer retention<\/a>. It is also useful for predicting future revenue.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/50770620-6946-49ec-bdda-9c33cbda589f.png\" \/><\/p>\n<h3>Reduce customer churn with exit surveys<\/h3>\n<p><a href=\"https:\/\/userpilot.com\/blog\/churn-surveys-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">Exit surveys<\/a> have two parts to play in your customer retention formula.<\/p>\n<ol>\n<li>They help you get a sense of the difficulties experienced by unhappy users, which increases your company\u2019s ability to address them in the future.<\/li>\n<li>They give you a final opportunity to encourage customers to change their minds and stay!<\/li>\n<\/ol>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/3702dd45-f201-49d3-bc9c-2fec818b443f.png\" \/><\/p>\n<p>In the past, these were often sent out by email \u2013 but today\u2019s SaaS companies are seeing significant advantages from putting them in-app:<\/p>\n<ol>\n<li>Completion rates are much higher, which means you get better data. Once somebody has decided to cancel and shut down your app for the last time, they\u2019re far less likely to offer you feedback than if you ask them <strong><em>during<\/em><\/strong> the cancellation flow.<\/li>\n<li>As well as getting more responses, you\u2019ll get more authentic responses \u2013 because the feedback will be immediate rather than retrospective.<\/li>\n<li>You can offer incentives to stay or alternatives to cancellation before the workflow is completed.<\/li>\n<\/ol>\n<h2><strong>Customer retention strategy examples in practice<\/strong><\/h2>\n<p>If you do all of these things, then your <a href=\"https:\/\/userpilot.com\/blog\/saas-customer-success-guide\/\">customer success team<\/a> will crush churn rates and your retention program will be a rip-snorting success!<\/p>\n<p>But don\u2019t just take our word for it. Take a look at how these SaaS companies have been increasing customer retention with them.<\/p>\n<h3><strong>Customer retention strategy example #1 \u2013 Kommunicate in-app checklists<\/strong><\/h3>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/SourceKommunicate_io_def37c5fd67d5b71e91f5dcc90803d25.gif\" \/><\/p>\n<p>Source: <a href=\"https:\/\/userpilot.com\/blog\/kommunicate-case-study\/\" target=\"_blank\" rel=\"noopener noreferrer\">Kommunicate.io<\/a><\/p>\n<p><a href=\"https:\/\/userpilot.com\/blog\/kommunicate-case-study\/\" target=\"_blank\" rel=\"noopener noreferrer\">Kommunicate had a problem<\/a>. Outgoing customers were asking for a feature that already existed, but that they hadn\u2019t been able to find.<\/p>\n<p>So, they implemented in-app checklists to drive users to adopt that feature \u2013 and then provided secondary onboarding through interactive walkthroughs to get customers to use other features as well.<\/p>\n<blockquote><p><em>The result: 86% of Kommunicate users completed the chat widget customization goal.<\/em><\/p><\/blockquote>\n<p>That led to a 3% uplift in feature usage.<\/p>\n<p>\u2018It\u2019s a substantial increase for us as well \u2013 even if it\u2019s just 5% increase \u2013 it then translates into a 2-3% increase in revenue, which has a substantial impact on our MRR\u2019, said Parth Shrivastava.<\/p>\n<h3><strong>Customer retention strategy example #2 \u2013 Miro in-app guides<\/strong><\/h3>\n<p>Making the most of the online whiteboard collaboration tool Miro is not simple.<\/p>\n<p>But they\u2019ve done a great job in providing loads of in-app training and support resources, including:<\/p>\n<ul>\n<li>Behavioral triggers that launch contextual in-app experiences<\/li>\n<li>A wide variety of different training resources, including tutorials, webinars, and complete courses<\/li>\n<li>Integration of live customer support functionality into the resource center widget<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/SourceMiro_com_519bd26e60cad9322341bda205ec6859_800.png\" \/><\/p>\n<p>Source: Miro<\/p>\n<p>This way, Miro is catering to the needs of many different customer segments and user preferences in one, consistent, easily-accessed location.<\/p>\n<h3><strong>Customer retention strategy example #3 \u2013 Kontentino in-app gamification<\/strong><\/h3>\n<p>The best examples of customer retention programs don\u2019t have to be as comprehensive as Miro\u2019s.<\/p>\n<p>Social media management tool Kontentino used Userpilot to gamify aspects of their primary onboarding \u2013 resulting in a <a href=\"https:\/\/userpilot.com\/blog\/kontentino-case-study\/\" target=\"_blank\" rel=\"noopener noreferrer\">10% uplift in new customer activation within one month<\/a>.<\/p>\n<p>When a customer successfully links their first account to the app, they are rewarded with this funny and personal GIF. Little things like this can go a long way!<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/SourceKontentino_com_ae70f87e79712baf5714496252ea530f.gif\" \/><\/p>\n<p>Source: <a href=\"https:\/\/userpilot.com\/blog\/kommunicate-case-study\/\" target=\"_blank\" rel=\"noopener noreferrer\">Kontentino.com<\/a><\/p>\n<h2>How to retain existing customers with Userpilot<\/h2>\n<p><a href=\"https:\/\/userpilot.com\/solutions\/customer-retention\/\" target=\"_blank\" rel=\"noopener\">Customer retention<\/a> helps you reduce acquisition costs and drive expansion over time. Userpilot makes it easy to analyze retention using funnel reports, trend reports, and built-in goal tracking that can be filtered by segment\/company\/time period to provide actionable insights.<\/p>\n<p>Here are the Userpilot features you can use to analyze <a href=\"https:\/\/userpilot.com\/blog\/user-retention\/\" target=\"_blank\" rel=\"noopener\">user retention<\/a>:<\/p>\n<ul>\n<li><strong>Funnels<\/strong>: Funnel reports show you the number of users who enter a funnel versus the percentage who complete it. Using Userpilot\u2019s funnel reports to track activation points and adoption goals can help identify the stages where users drop off so you can patch these leaks.<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/ae90b1bd-17f6-4b2b-a098-c187043b9c0f.png\" \/><\/p>\n<ul>\n<li><strong>Trends<\/strong>: Trend reports let you see how specific product changes impact retention metrics and monitor changes in active user counts over certain time periods. You can also create custom metrics, track events, or use the breakdown tab to perform a correlative retention analysis.<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2023\/09\/Userpilot-trends-1-1024x670.gif\" alt=\"\" \/><\/p>\n<ul>\n<li><strong>Cohort analysis<\/strong>: Analyze retention trends using cohort tables. This functionality will be available in Q4 of 2023.<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2023\/09\/cohort-analysis-userpilot-1024x654.png\" alt=\"\" \/><\/p>\n<p>Besides analyzing SaaS customer retention, you can implement <a href=\"https:\/\/userpilot.com\/blog\/in-app-surveys\/\" target=\"_blank\" rel=\"noopener noreferrer\">in-app surveys<\/a> to collect customer feedback, use <a href=\"https:\/\/userpilot.com\/blog\/user-segmentation\/\" target=\"_blank\" rel=\"noopener noreferrer\">segmentation<\/a> to personalize user journeys and use in-app customer retention strategies to <a href=\"https:\/\/userpilot.com\/blog\/improve-nps\/\" target=\"_blank\" rel=\"noopener noreferrer\">improve loyalty<\/a>.<\/p>\n<h2>Conclusion<\/h2>\n<p>If your SaaS business is based on a subscription model, then you need to care about not just how many new customers you win, but also how the number of customers you keep \u2013 and how much money those customers spend.<\/p>\n<p>That means you need to care about SaaS customer retention.<\/p>\n<p>As we\u2019ve shown in this article, there are loads of different metrics, goals, strategies, tactics, and tools SaaS companies can use to ensure that their products and services are sticky, engaging, and provide long-term value to existing customers.<\/p>\n<p>If you\u2019re looking to improve customer retention with in-app messaging tactics as we described here, <a href=\"https:\/\/userpilot.com\/userpilot-demo\" target=\"_blank\" rel=\"noopener noreferrer\">get a Userpilot demo and get started.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is customer retention and when should you focus on improving retention metrics? Find all about it and get some of the best tactics to improve retention in SaaS.<\/p>\n","protected":false},"author":51,"featured_media":145036,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[25,289,290,48],"tags":[446,285,207,363,244,247,248,245],"class_list":["post-10177","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customer-success","category-saas","category-updated","category-user-onboarding-category","tag-customer-experience","tag-customer-retention","tag-customer-retention-strategies","tag-customer-success","tag-retention","tag-retention-marketing","tag-retention-marketing-strategy","tag-user-retention"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>SaaS Customer Retention: Strategies, Examples and Tools<\/title>\n<meta name=\"description\" content=\"What is SaaS customer retention and when should you focus on improving retention metrics? 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