Unlike traditional software companies, companies that use SaaS model do not rely on licensing fees to make money. They do so through monthly or annual subscriptions. For most SaaS companies, acquiring customers is usually an expensive but necessary investment. In the long run, the investment is recouped, and the customers bring in profit. Unfortunately, it takes a while to get to this point. If a customer churns too early, the company loses the investment made on that customer.
This is why SaaS companies always monitor important metrics such as recurring revenue, churn rate, retention rate, customer usage data, CRM data, and so on. Using this data, SaaS companies can identify signs that a customer is ready to increase business with them or churn. One way this is done is through Customer Segmentation Analysis. By grouping customers with similar characteristics, the companies can detect the various types of customers they have, from the casual ones to the big fishes. It also helps SaaS companies identify customers who are likely to churn.
Another way SaaS companies identify customers likely to churn is through Customer Churn Analysis. Churn can be modeled and used to predict user accounts that are likely to churn, using some of the data collected by the company. The companies can also determine the probability of a customer churning past a specified period using survival analysis.
These are some of the ways SaaS companies prevent churn to maximize their customers' lifetime value, and therefore, profit in the company. Normally all these analyses would require the expertise of a data scientist, but with data science as a service platforms like SynctacticAI, this doesn’t have to be the case.
SynctacticAI is a data science platform that simplifies the collection, analysis, and visualization of data, among other things for businesses, making it easy to extract much-needed insight from their data. Below are some of the features it has that make the use of data science in SaaS companies much easier.
Data in its raw form isn’t always structured and ‘clean’. Sometimes, the data gotten from the users are of poor quality, either due to fragmentation, duplication, or partial or incorrect data. To make the data more useful, it has to go through several data processing operations to make it ready for visualization or analysis. SynctacticAI offers data processing services that can process large volumes of data in minutes. It also offers data enrichment to improve the quality of your data before analyzing or visualizing it.
SynctacticAI has a business intelligence platform designed to make the monitoring of your key metrics such as recurring revenue, churn rate, and retention rate as easy as possible. It provides a wide range of BI reports using charts, and other data visualization techniques to make deriving insights from key metrics easy.
SaaS companies need to make forecasts and predictions from their data. They want to know the customers likely to churn or spend more on their product or find out a customer’s probable lifetime value. SynctacticAI offers clustering and segmentation services, which would prove helpful in your customer segmentation analysis. It also offers advanced data modeling capabilities, perfect for modeling churn and other important criteria in an SaaS company.
Data is essential to all businesses, and even more so to SaaS businesses. Being able to analyze and derive insights from this data should be easy and seamless. And this is exactly what SynctacticAI offers SaaS companies. By making using SynctacticAI for your data science needs, your employees have more time to focus on other important tasks in the company. It would also save the company cost of hiring data science professionals as you can now carry out most of your data science operations with SynctacticAI
