How To Improve NRR?
It is not enough to retain your existing customers. You should also be able to improve the revenue your business makes from them. You have to ensure they do not degrade. But how to do so? Simple, follow the following four tricks, and you will be able to improve your NRR.
Upselling is a wise technique to make a little extra from the existing customers. They are already using your products and services. They trust your business. So, if you offer them an upgraded version of your product or service, there is a higher chance that they will subscribe to it. That is called upselling. You make improvements to your product and sell it at a higher price. That allows you to make extra revenue.
Another way to increase your revenue from the existing customers is to introduce a new product. Develop a product in your niche and sell it to your loyal customers who use your previous products. You can design a product that compliments the previous one. So, anyone who uses an existing product will also tend to purchase the new one. That is known as cross-selling, and it will help you boost your revenue and NRR. If customers use multiple products from your business, they stay longer.
Optimizing The Pricing
You have to strategize your pricing, keeping in mind the goal to increase your NRR. Start with setting an annual target for your business. For example, you want to achieve an NRR of 94% by the end of the year. Now you have to align your pricing with this goal. You have to follow an upselling pathway to improve your NRR. Keep adding miniature updates and accordingly keep increasing the prices. Do not make a giant leap at once. Do it slowly so that the customers do not mind paying a little extra.
Hiring an Expert
You can improve NRR only when you keep track of your progress, pay attention to customer retention and calculate NRR every quarter to monitor the improvement. However, a SaaS owner cannot manage everything. In this scenario, it is best to hire expert services that offer you a solution for customer retention. You can avail the services of Adaptive Pulse so you can focus your time and energy on the product quality while the experts take care of your loyal customer base. You can get insightful data, based on which you can take beneficial actions.
If you have your strategy in place and take the help of an expert, then it will not be too difficult to improve your NRR. Improving Net Revenue Retention rate means improving the stability of your SaaS business. Your loyal customers are your prime source of income, so you cannot afford to lose them. Hence, you need to do your best to retain the revenue. Remember! You have to give them a reason to stay and pay more. You need to analyze the insights and offer them the best.
If you want relevant updates occasionally, sign up for the private newsletter. Your email is never shared.