Reducing Customer Churn For A Product Owner

I remember this call quite well.

A product owner called me just as I was about to have my tea.

I answered the call.

"Our customers keep complaining and leaving," he said. "We don't know why."

We scheduled a call to do this properly.

I could tell he was exhausted and worried.

He explained how his team worked tirelessly to develop a good product.

But something was missing.

Customers signed up but didn’t stay.

Revenue was taking a hit.

I suspected his contracts might be part of the problem but wasn't sure.

So I took a closer look.

1) Their services were not clearly defined. Clients felt misled and frustrated.

2) Their intellectual property was unprotected. High risk of misuse and theft.

3) Payment terms? Confusing and unfair. Disputes over money became common.

4) Customer responsibilities? Not there. This led to constant back-and-forth and frustration.

5) Support and maintenance terms? Missing. Customers felt neglected and unsupported.

6) Termination and renewal clauses? Non-existent. Clients had no predictability or security.

Everything was a mess.

They focused so much on development that they ignored their foundation.

Their contracts were a ticking time bomb.

It was clear they needed help. Fast.

And so we did.

1) Clear Service Offering

The first step was to define what’s included in the SaaS solution, so customers know exactly what to expect.

We detailed features, functionalities, and limitations to manage customer expectations and avoid misunderstandings.

2) Intellectual Property Protection

The next step was to clearly state who owns the software and related intellectual property, ensuring it remains with the product owner.

We also added protections to prevent customers from copying, modifying, or reverse-engineering the software, safeguarding the product’s integrity.

3) Payment Terms

We set up a straightforward payment structure: clear billing cycles, due dates, and accepted payment methods.

We included terms for handling late payments, such as grace periods and penalties.

This is to ensure timely payments and maintain a steady cash flow.

4) Customer Responsibilities

This part was non-existent in the contract.

So we outlined what’s expected from customers:

Providing accurate information, following usage policies, and managing their accounts responsibly.

We also clarified the consequences of not meeting these responsibilities, such as service suspension, to ensure everyone knows their role in keeping things running smoothly.

5) Support and Maintenance

We detailed the support and maintenance services provided:

How quickly support will respond, the channels available, and what’s covered.

We explained how to report issues and what to expect in terms of resolution times, so customers know they’re in good hands and can rely on timely help.

6) Termination and Renewal

The last step was to create clear termination clauses, specifying under what conditions either party can end the contract.

We also detailed the renewal process, including automatic renewals and how to opt-out, to avoid any confusion and keep everything running smoothly.

Once this was done, we had a couple of things going for us:

-> Clear guidelines to minimize misunderstandings

-> Detailed support terms to increase customer confidence

-> Termination and renewal terms provided structure and predictability to the business.

Overall, the contract helped manage customer interactions more effectively.

And this helped in improving retention rates.

Everyone wants to build strong customer relationships.

But just wishing for it is not enough.

You have to take steps for it.

So check if your contract does what it is supposed to do:

define service offerings, payment terms, responsibilities, support details, etc.

If you need my help in updating your contract for more clarity.

And also covering any protection terms that might be missing.

Just reply to this email with "CLARITY."

Talk to you soon!

-- Akhil Mishra