Increasing User Retention with Email Marketing for SaaS Companies

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Email marketing for SaaS companies is a different sort of email marketing than followed in regular
brand campaigns. In the former case, you will be emailing people with an in-depth knowledge of the
strategies and tactics you are using. It means you need to be smart with what you deliver and how
you deliver it as well. Sustained email marketing campaigns tailored to the needs and interests of
different audiences can increase conversion rates as well as promote user retention. Let us discover
the myriad potential of email marketing in the business of SaaS companies.

Creating an ideal email marketing agenda for SaaS companies

Moz, the renowned software company, lowered its 30-day churn rate with a simple onboarding
email by a staggering 40%. The actionable nature of the email with outreach suggestions and ROI
demonstration, written in a playful tone resonated with users and brought them on board instantly.

 

The direct and personalized approach of email enables SaaS companies to gather leads, guide new
user onboarding, and maintain consistent communication with users. Personalized email campaigns
can keep users engaged and increase lifetime value. Let us see some of the ways you can create a
personalized email campaign for a SaaS company-

 

1. Onboarding sequences and welcome emails- Onboarding is vital to your product’s success.
A well-planned onboarding can reduce customer churn, increase retention, and upgrade
adoption rates. An effective onboarding guide via email can increase engagement and
revenue more than regular send-outs. It also receives a higher open rate than standard
promotion emails, contributing to retention.
2. Product update emails- Email marketing for SaaS does not end with the user signing up for a
paid subscription. Companies also need to develop robust SaaS user retention strategies to
maintain and grow their user base over time. Product update flows are a good way to
maintain consistent communication with the user base for SaaS companies. This helps to
make sure that the users are regularly engaging with the products and are deriving real
value from their subscriptions. It ensures that the users know all about the latest updates
and how each feature can benefit them.
3. Re-engagement emails- These can help you retain product users and mailing list subscribers
for your company. Inactive users not only mean a high churn rate, but they can also harm
your email marketing performance. Encourage the users to come back to the platform by
letting them know about free tools, offers, new products, etc. Leading users with value
towards reactivation can help a lot when you are reaching out to them via email.
4. Tools and platforms for managing campaigns- Some email marketing tools can automate
your marketing campaigns, thereby reducing SaaS churn with email. They can track, record,
analyze, make reports, and discover growth opportunities to present you with possible
solutions. They will help you figure out how to send out the right mail at the right time,
enhancing user retention and satisfaction. Some of the most well-known of these tools are
ActiveCampaign, EngageBay, Brevo, Omnisend, and Mailmodo.

Frequently asked questions about SaaS email marketing

The key metric is Customer Lifetime Value (CLV) driven by email engagement.
Use UTM parameters and email tracking tools to measure open rates and link clicks.
Analyse retention rates before and after campaigns to gauge their influence on keeping customers.
It measures the effectiveness of your email content by driving users to take action.
Typically, it ranges from 1% to 5% depending on your campaign targeting and quality of the email list.

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