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How to Increase Customer Engagement for SaaS Companies

What is customer engagement?

Customer engagement is measured as the extent to which a business interaction has taken place. It is about the emotion and connections you create with your clients. However, customer satisfaction can be measured too! Customer involvement is crucial for the company to continue achieving growth and retain customers. What is the best way to improve SaaS customer interaction?

Why is customer engagement the lifeblood of SaaS companies?

Subscribers should be able to pay for services via subscription to stay viable. They use customer engagement strategies to continue to attract clients. The key to customer satisfaction

is ensuring customers are able to make the most efficient contact with the company. This results in you earning the trust of the customer. Loyalty customers can also purchase premium plans, thereby increasing life spans. Even long-time users can switch to competitors if a user becomes disappointed or find alternative services.

Tips to Increase Customer Engagement


Given the competitive nature of SaaS upfront pricing and the prevalence of a free trial and accessible model, customers shouldn’t be worried when they’re churning during their first week. The tracking of weekly visits will identify the customer. It is impossible to find any formula to calculate it. Instead, you will record how often you’ve asked a client to log out. You may even track how many sessions you have used.

Connect with your power users

If you plan on getting a customer engaged with you, it is helpful that you speak with them. SaaS companies typically target users engaged with technology, often referred to as ‘power users’. If you transform Power users into product champions, your product will be able to build your brand awareness. This is also a great way to involve users in user testing. You can include customer feedback in your product’s layout as an added value.

Implement just-in-time training

Education is a vital component of the customer experience. In this context, training is crucial in SaaS product marketing. But your training must be appropriate for your product. Long, highly detailed material may cause disengagement. Clients are looking for quick solutions and can use the product most efficiently. The entire text should be accessible to everyone. Just-in-time training can help customers increase engagement and retention.

Efficient billing process

Automating one of the essential steps in making your SaaS profitable helps you engage with your customers correctly. Employing a robust billing solution, coupled with sales tax calculation services, offers transparency. Your customers are adequately informed regarding the costs associated with their orders. Transparency builds trust, and you are offered the peace of mind that your taxes are adequately calculated and your billing is professionally handled.

Get your metrics right

Many SaaS metrics can be used for measuring customer interaction. Examples include active users, usage frequency, usage duration in the application, etc. It can help you measure how much or little a customer engages with your products to increase their experience in using them

more effectively. Identify and analyze several metrics to communicate and improve your Customer Experience Model.

Communicate with customers using live chat

When customers encounter an error when using the feature, they are frustrated. It may even cause frustrations that cause disengagement. In other words, you can make your customers happy, educated, and engaging. Providing a live chat service helps customers get a quicker answer than you can.

How to Increase Customer Engagement for SaaS Companies

With the live chat feature, customers will have access 24 hours a day to assist with the solution. Reduces the need for the customer to spend more money to solve a particular issue. Set up live chats for apps via Intercom or integrate with Slack via ChatLio.

Personalization solutions

Easily personalize your engagement campaigns with a unique approach. Create customized onboarding experience with Apcues or pick marketing channels according to customers’ needs using Engage.

Email marketing solutions

Email effectively sends personal messages about new features, promotions, user education, and more to a customer. SendGrid automates customized emails using Event Triggers using Drip.

Four customer engagement metrics that SaaS companies need to track

These five SaaS Customer Orientation Metrics determine whether a business delivers a good product or service.

1)  Daily/Monthly Active Users (DAU/MAU)

This metric shows how many unique user accounts your system can have each day. It can help you determine whether or not a customer’s return on investment has driven the growth of DAU/MMU. Customer engagement metrics are linked more tightly to customer interaction by setting the minimum criteria.

2)  Customer Effort Score (CES)

Gartner found that 95 % of people with responsibilities to obtain support from their companies are disloyal. 9% of the customers that incurred minimal efforts were disloyal. When CES data is tracked, you can ensure a smooth user experience.

3)  Customer Lifetime Value (LTV)

LTV measures the total potential income a customer will receive throughout his or her lifetime. Use LTV to determine whether you’re spending a reasonable amount to acquire new customers while maximizing profits. It is generally advisable to spend 5% of LTV on customer acquisition.

4)  Churn rate

Churn rates measure the number of users abandoning a software product. Take the metric as a starting point to explore and experiment. What are the reasons behind your high turnover rate? You can compare your churn rate and other business metrics to the industry benchmarks. The average SaaS churn rate varies from 5% to 15% of total sales.


If you want to increase customer engagement for your SaaS company, start by understanding your customer’s needs. You can create engaging content that resonates with them and provides value. Finally, don’t forget to measure your results to continue improving your strategies. By following these steps, you’ll be on your way to increasing customer engagement and growing your business.