Thursday, August 24, 2006

Increasing customer stickiness

In my blog on SaaS challenges, i had mentioned that one of the key challenges that ISVs face today is "Customer Retention". Lets look at some of the possible ways to retain customers

  1. Provide some on-premise features like backup of critical data
  2. Provide capabilities for the customers to integrate their application / data with your hosted product. Today we are seeing on-demand integration products from BridgeWerx and Informatica which would help you to do this.
  3. Usability is a key aspect, customer should find it very intuitive to use your service. Google bosts of a simple user interface as one of the reason why it is able to retain and attract customers
  4. Expose all your features also through well documented web-services
  5. Provide confidence to the customer about the quality of your service by providing rich SLA's
  6. Instill confidence in him that he will be able to leave you at any point of time by providing a transition path as a part of contract
  7. Provide a platform for him to extend your features
  8. Make your application truly multitenant and ensure that the application has high responsiveness in the order of milli-seconds
  9. Make the application easily customizable through meta-data.
  10. Last but not the least, price it attractively for the customer, be more innovative than the user/month pricing model

There is still a lot more to this list.

Technorati tags: SaaS, Software as a Service

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