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June 16, 2022

5 Intelligent CRM Alternatives to Custify for Churn Rate

It is not good enough to maintain the same numbers that your industry is doing when talking about churn rate. You need to actually be precise on how people are using your software. In fact, Mixpanel found (thanks to surveying) that the most engaged users were the ones that benefited from instant gratification and customization. Based on that, they greatly increased their product market fit and growth by focusing on those features.

Founded in 2017, Custify has a revenue of $900k and it plans to continue growing. Their value proposition is based on these 3 pillars:

  • Understand your customers
  • Increase their satisfaction
  • Improve onboarding

Custify is great for reducing churn, the fact that you can create a segment and use those created segments to keep track of anything it’s mind-blowing. However, it is not the most simple tool to use, they do not have task management among other useful sets of tools to help SaaS manage churn rate. It may be the case that you might be looking for an all-in-one CRM solution.

A customer relationship management solution (CMS), can help you reduce churn and nurture your leads, which basically corresponds more to a CRM software rather than a customer success one.

There are 3 use cases we are going to find in the list in the following CRMs:

  • Use case 1: Analyzing your negative growth (SaaS companies can grow negatively due to their leaving users)
  • Use case 2: Creating actionable plans for upselling and cross-selling current users
  • Use case 3: Identifying users that are going to churn (before they do)

What is a good churn rate for SaaS?

If you have a $7,500 MRR startup with a $500 churn monthly that’s way too high. Even if you are growing at 20% monthly (which is sometimes the norm for technology startups), having a churn rate superior to 10% is dangerous.

Should I use a CRM to reduce churn?

Do not confuse that a CRM is only meant for increasing sales. As a matter of fact, understanding why customers leave is probably one of the most useful cases for a CRM. To give an example, Groove reduced the churn rate of software by 70% by understanding the main reasons why their customers were leaving through a survey form that could be created and analyzed by a CRM.

Is churn the same as retention?

Churn or abandonment is the rate at which users leave your app in a specific timeframe (e.x 2 months, 12 months, 2 years), while retention is the rate at which users stay. They mean the exact opposite but are tied to this same concept: Growth.

What is Custify pricing? Is it worth the cost?

Custify starter pricing plan starts at $199/month including 2 seats and their top features including user segmentation, and health score. To add, the standard plan costs $499/month and it includes 10 seats with some extra data on the lifecycle of your users and playbook automation. Among Custify integrations, the most remarkable ones are Intercom, Zapier, Microsoft 365 products, Segment, Stripe, Slack, etc.

Depending on the use case Custify is worth the cost, if we are talking about churn then you can check the following solutions and decide for yourself if Custify is worth the investment.

EDITOR’S CHOICE

As a SaaS founder of Custerem, a bootstrapped (and boutique) CRM software for SaaS to reduce churn and understand customer behavior. The main goal of Custerem is for you to understand your users, and grow your software company based on these fundamentals.

#1 Hubspot

Hubspot is the solution that fits all businesses due to its very broad but effective product. In a Hubspot case study, they mention how Yoga International reduced churn by 20% by listening, listening, and listening with their survey tools. So here are some use cases.

  • Customer Feedback Software: You can ask questions at different stages of your customer journey, and understand what are their current pain points, and how to solve them better.

Hubspot CRM example image

  • Task Management: be in charge of everything in one place for managing all your campaigns. No more jumping from browser tab to browser tab. Instead of spending hours or even days reviewing your campaign performance one week at a time on a calendar, switch over to Task Management's list.

Hubspot CRM example image

#2 Qualtrics Customer Experience

While Qualtrics is an all-in-one experience analytics (not a CRM) that lets you learn, understand and improve both business results and the customer experience.

Use cases:

The software can can be used to collect real and relevant data without coding, analyze your findings with smart visualizations, ensure flawless execution through automated workflows

  • Customer Health Score: With Qualtrics you are able to set a score for each one of your customers with metrics like time spent in your app, how many times they downgraded their plans, or even how many times they reach out to customer support
  • Results-Reports: Analyze the answers coming from your survey to understand better how your software is performing, how likely it is to get recommended, and much more.

Qualtrics CRM example image

Best for:

  • Qualtrics is ideal for customer service, managers, and analysts looking to understand in-depth what their software is missing on and turning them “into fanatics”.

#3 Zoho CRM Plus

Zoho is a tool that is accessible to use for growing and early-stage startups that want to use it all in one place; customer analytics, customer intelligence, customer support, etc.

Use cases:

  • Subscription revenue forecast has become a popular tool among subscription businesses because it helps them understand their long-term profitability and customer retention rates. It also allows them to plan for future growth by estimating how much additional capital will be needed for software purchases, hiring new employees, etc.

Zoho CRM example image

  • Insights and Zoho Surveys: Among the many tools that this value proposition comes from Zoho offers, you can use surveys to understand your company’s strengths and weaknesses, improve customer retention and develop new products (all within this set of features they call insights and intelligence).

#4 Nimble CRM

With $2.4 USD in revenue and more than 10.000 thousand paying customers, Nimble could be a great solution for improving the abandonment rate and serving your customer needs better.

Use cases:

  • Loyalty programs. The average customer lifetime value (CLV) of a loyal customer is up to 3x more than that of a non-loyal customer. The average annual revenue of a software company with a 3% retention rate is 80% more than that of a company with a 1% retention rate. The average annual revenue per active user is 10x higher than that of an inactive user.

  • Group Message. Nimble tries to make email marketing more personal. Send targeted email messages to 300 contacts (max) per day. No more blasting generic newsletter forwards out to huge distribution lists. Send an email that your target audience actually wants and needs.

Nimble CRM example image

#5 Salesforce + Surveys

Salesforce one of the software giants offers a set of professional services for those who want help with their survey strategy or data analysis. This is very powerful because you are going to have a native experience with Salesforce without you needing to look for a customer success tool that integrates with Salesforce.

Use cases:

  • Salesforce Surveys. Immediately take your responses and form submissions and enrich your current customer data with Salesforce CRM. Setting up a basic form in Salesforce can take you about 1.3hs according to their official academy.

Salesforce Surveys example image

Limitations

Salesforce surveys are pretty limited and basic. Salesforce is not meant to be used for analyzing customer data, and working on that data. However, it is still a great tool to reduce churn because you can improve your sales and customer acquisition by pointing to a higher LTV prospect list with Salesforce intelligence.

Hayri Cicek