What is automated customer retention?
Automated customer retention refers to the process of using rule-based logic to automatically initiate and complete a series of retention-focused tasks, keeping existing customers engaged.
Automated workflows in customer retention consist of four key parts. Understanding these components helps you design effective retention processes without burdening your existing workforce.
Here is what 4 key components of an automated customer retention workflow mean:
Trigger: The event or condition that starts the workflow. Example: The date of the subscription renewal of an existing customer.
Actions: The sequence of automated actions taken once the trigger occurs. Example: Sending a series of personalized renewal reminder emails and special offers.
Results: The responses or interactions generated by the triggered actions. Example: The opening of the email and clicking on the CTA by the customer.
Outcome: The final goal is achieved at the end of the workflow. Example: Subscription renewal of the customer account.
💡 Related guide: # How to Drive Better Customer Retention in B2B SaaS
Types of automated workflows in customer retention
Customer retention automation can take many forms depending on your requirements. Here are some common types of automated workflows:
Linear workflow: This type of workflow follows a straightforward sequence. You do Task A, then Task B, Task C, and so on.
For example, once a support ticket is closed, an automated email is sent asking the customer if their issue was resolved satisfactorily.
Non-linear workflow: Unlike linear workflows, these workflows split into multiple branches based on customer behavior or actions taken by the customers.
For example, suppose a customer ignores the first renewal email but opens the second one; the workflow adapts, sending a different message or triggering a follow-up call.
Loop workflow: In loop workflows, the completion of one cycle automatically triggers the next workflow.
For example, upon redeeming a loyalty reward (end of cycle), another workflow is triggered that sends monthly reminders about new rewards and offers. Each reminder completes and triggers the next, encouraging ongoing participation in the loyalty program.
Parallel workflow: Parallel workflows handle multiple processes simultaneously to engage customers through different channels at once.
For instance, while an automated email campaign shares feature updates and best practices, a separate SMS alert might notify the customer about upcoming billing dates or expiring trial periods.
Common retention tasks to automate for your SaaS business
Here are some of the key customer retention tasks that SaaS companies are automating:
Data consolidation
When your customer data comes from six different tools, like billing platforms, support apps, and product analytics, it’s possible you might end up with duplicate customer records. This can make your retention analysis process messy and skew your results.
Instead of cleaning up duplicates manually, SaaS companies set up an automated flow that merges them. You can set up rules for how conflicting information should be combined, how often the process should run, and create alerts for any records that need a manual check.
Cancellation process
Automated cancellation flows can reduce voluntary churn by offering your customers a last-chance offer when they initiate the cancellation process.
This flow typically asks customers to select a cancellation reason, like pricing concerns, lack of use, or switching to a competitor. Based on that selection, the system instantly presents a personalized offer, such as plan downgrades or subscription pauses.
Beyond offering incentives, automated cancellation flows also help you gather feedback on why customers leave. By consistently capturing these reasons, you can make informed decisions about pricing, products, or how your customer support team operates.
Failed payment recovery
Sometimes, customers churn involuntarily because their payment didn’t go through. Instead of asking your team to manually follow up on each failed payment, you can set up an automated flow to handle it.
The dunning process helps businesses automatically retry payments for an invoice if the payment fails. You can choose how many times the system should try, how often, and what to do if the payment still doesn’t go through.
24X7 support
Chatbots are often the first layer of support automation that SaaS teams rely on. They can instantly respond to your customers' common questions and guide them to helpful resources if needed.
When a chatbot can’t fully resolve a problem, the system automatically escalates the case to a human agent from the relevant vertical or team. The right team member is assigned based on the issue type and customer history, whether that’s a technical specialist, an account manager, or a support lead, to offer effective support.
If the issue stays open beyond a certain timeframe, the system automatically sends a follow-up message to let the customer know that an agent is currently unavailable, followed by a personalized message or push notification as soon as the agent comes online.
Feedback automation
Collecting continuous customer feedback is super important for SaaS companies that want to keep churn low. But doing it manually is expensive and demands too much time and resources.
Automated customer feedback, on the other hand, can gather feedback continuously. You can automatically send out surveys or NPS (Net Promoter Score) requests after important customer moments, like when they hit a usage milestone or when a support issue gets resolved.
For example, when a customer completes their first 100 active sessions, an automated survey can be sent to check their satisfaction and gather insights on how the product is delivering value.
How to Automate Customer Retention With Mailmodo
Mailmodo helps companies retain customers by automating email workflows. With automated emails, you can communicate with your customers in a personalized and timely manner, which keeps them engaged, informed, and supported.
You can automate various types of emails, including:
Educational content: A series of emails that best practices, product updates, or upcoming events to help customers continuously succeed with your product.
Usage-based check-ins: Automated emails triggered when product usage drops, inviting the customer to re-engage or offering help if something’s blocking their success.
Discount and upgrade offers: Emails that offer special discounts or encourage customers to upgrade their subscription to get more features.
Challenges in automating customer retention
Over-automation can feel robotic: Sending too many automated messages or using impersonal language can make customers feel like they’re interacting with a machine, not a company that cares.
Integration issues across tools: Many SaaS companies use multiple platforms, and poor integration between these tools can cause data silos. Without smooth data flow, automation workflows may fail or give inaccurate insights.
Customer privacy: Automating retention means handling sensitive customer data across multiple systems. Poor data management can create privacy risks and harm customer trust.
Malfunctioned automation triggers: If automation doesn’t react quickly to customer behavior, it may miss the right moment to prevent churn.
Insufficient testing : Not regularly reviewing and optimizing workflows can cause your automation to become irrelevant. Ongoing testing helps identify what actually retains customers.
Final thoughts
The idea of setting up automation might seem complex in the beginning. But once you understand the core elements and set up the process, you can shrink the never-ending to-do list of your customer retention work.
With automation handling routine tasks like follow-ups, payment reminders, and feedback collection, your team can spend their valuable time on work that establishes a deeper connection with your customers and drives business growth.
