Nov 03, 2011

What are effective ways to retain customers when shifting to a SaaS business model?

My company plans to shift away from being a hardware/software provider to focus on a cloud based model, and this has raised concerns among my colleagues that existing customers may flee when the change occurs. There is always a percentage of customers that are resistant to adopting new technology, as can be seen by the number of businesses that are still running Windows XP a decade after it was released. Our goal is to continue our ongoing relationships at the same time that we expand our business to include new customers that were previously unable to afford most of our services. What have others found to be the most effective ways to retain an existing client base while making the shift to a SaaS model?

Hi ncharles,

Perhaps it might be a good idea to offer some sort of discount pricing to your existing customers? Something that would include support and/or transition assistance to your new cloud based services? I am not sure how many would be interested, but you might get at least some if you put together a good package.

I think it's a wise idea to try to continue existing relationships and transition existing customers to your new cloud model. Good luck, I hope it works out well for you.
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