Supported by Germany-based technology investor LEA Partners, the companies aim to provide a platform that extends the shopping experience into the invoicing process and strengthens customer loyalty.
The partnership primarily supports the growing customer base of more than 20,000 SMEs and e-commerce companies and enables them to increase their sales potential, save time and money by automating recurring processes, simplify processes and increase transparency through an integrated platform.
PAQATO brings its SaaS solution for automated, personalised after-sales communication to optimise the customer journey after checkout, enabling users to retain their customers in the future.
The entire business model of SaaS companies is built around retaining customers for the long run, thus increasing customer lifetime value and monthly recurring revenue.
Building brand loyalty in any business, especially SaaS, can ensure returning customers. Multiple studies have shown that acquiring a new customer is a lot more expensive than retaining an existing one, with the average conversion rate from promotions sent to new customers being less than 1%.
Moreover, the probability of sale from a new customer is 5% – 20%, compared to the 80% of profit that usually comes from 20% of already existing customers.
Other relevant statistics that highlight the benefits of customer loyalty include the percentage spent by repeat customers on average, which is 33% more than new customers, the 5% increase in customer retention which can increase profits by more than 25%, and the profitability of converting an already exiting customer, which is 60% to 70%.
There are other several reasons why customer loyalty is beneficial for SaaS businesses. Firstly, loyal customers are less likely to switch to competitors, resulting in lower churn rates and more stable recurring revenue. Long-term customers also provide insightful feedback, helping companies improve their services and grow.
The increase in up-sell and cross-sell opportunities counts as another advantage, as loyal customers are more receptive to trying new features or complementary products.
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