Micro SaaS Academy

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Running Your Micro SaaS

How to Run Customer Service for Maximum Happiness
Top Prio
CS is a really easy way to get users to stay and pay you
It helps with them the setup, feature requests, and if they are experiencing any errors
Do not outsource your CS at the beginning; you need to talk directly to your customers
Only use email
Dont use live chat, peoplem have expectations about response times for each medium
Live chat
1 minute (good)
10 mins (bad)
Email
Under 24 hours (good)
2 days or more (bad)
Try to respond in the 3 - 12 hr time window, 12 hrs only occur if go to bed and when log on the next morning
Dont leave notifs on, need to get into a flow state, but will need to check everything few hours
Automation
Use lots of docs, once a month I go through and add to the docs based on customer requests
Try to automate anything that getting repeated questions about
Autoresponder email to tell them the response times
Bonus tips
Be personal, address convo as the founder and CEO of the app, embrace the fact that your product team is small, customers actually love to see it
Set hours for example, 9-5 ET, we can still answer but it's nice to set hours
Tools
Free
Use to start and have a basic FAQ page
Paid
Help Scout, make it super easy to create a docs section in the widget
Customer convo are easily organized
Reduced Stripe Fees
Stripe Startup Partner Program
Conquering User Churn
What?
The rate at which customers discountinue or cancel their sub to your product
Directly impacts revenue and growth
3 reasons why users churn
1 - The product didn't get the job done. This situation arises when the SaaS tool lacks product-market fit or lacks essential functionalities
2 - Didn't meet expectations. This occurs when the customer is presented with a misleading or inaccurate perception of the product, either intentionally or unintentionally
3 - Customers didn't get to experience any value. This may be attributed to difficulties in product usabilities or a failure to expedite the time-to-value, resulting in customers leaving after encountering initial obstacles or friction
Calculating Churn
User churn: (# of churned (lost) customers during the period / # of customers at the start of the period) x 100
Revenue Churn
((Churned MRR - Expansion MRR) / starting MRR) x 100
Expansion MRR: 20 upgrade to 50, expansion MRR is 30
Churned MRR it the revenue lost due to churn during the period of time
Learning why there was churn
How would you feel if you could no longer use [product name]?
Very disappointed
Somewhat disappointed
Not disappointed (it really wasn't that useful)
This survey comes from Superhuman
NPS Survey
It asks a simple question "On a scale of 1-10, how likely are you to recommend our software to a friend or colleague""
9-10 is called a promote, score 7-8 is called a passive, score 0-6 is called a detractor
Exit Surveys
Asking them to understand why they are leaving, can do so on the way to caneling a plan, can follow up with them by email as well
Example
What would we have done better?
Would you recommend [app name]?
Why did you uninstall [app name]?
Can use Help Scout or Sprig
How to reduce churn
Acceptable Churn
This will depend on your customers
Typically yearly churn is around 3-8%
Can also be separated
Pre-60 days can be 20-40%, aim for the lower end
Post 60 days: 2-5%
Net Negative Churn
(Churned MRR - Expansion MRR gained) / Total MRR
The Feature Request Framework
Balancing Act
You're going to have to balance between what you think is part of the long-term vision and what customers want
You don't want to bend to the loudest customers
Simple Framework
Demand (1-3, 1 is high demand)
Impact (1 high 3 low)
Effort (1,2,3,4,5,6) - higher is more time
How to Handle
What we'll also say is that we'll add it to the feature list
But we'll preface taht we won't be able to give an exact timeline
Some founders will say they don't have plans to build it
You don't necessarily want to give a timeline
Save $$$ on Currency Conversion Fees
Use Wise
When there is Smoke There is Fire
When does this happen?
This is something I've noticed for customer requests
When you get a customer request that something isn't working. It's probably not this one person
Most people if something doesn't work will not contact you they might choose to cancel their subscription or just not open it up again
What to do about it?
So make sure you investigate why this bug or issue is happening just in case it's impacting other people
How to do this:
Ask more questions
Try to recreate the error
Automating Back Your Time
Why do this?
In the beginning, everything will be manual, you will constantly be finding workarounds
But as your product starts to grow it's important to think about what can be automated that was done manually before
This gives you less time to think about the overall
I once met a founder who was doing a full-time income from his SaaS. But he still sending out invoices and licenses manually! It meant he was constantly on his phone and his computer
Where to look for automations?
Customer Questions
What do they keep asking about? Are certain settings confusing? It can be as simple as a clarification
Marketing comms
Manual acc updates
Customer cancellation or plan upgrades
Feature Automation Example
For features taking a look at my own workflow, many users would request their accounts to be linked together
I would manually send email confirmations to ensure they were owned by the same person. Although this didn't take too long. It was still a few requests every few weeks
Error Message Automation
Tell the user exactly what went wrong so they can fix it themselves nobody wants to message support and wait
For example, integration errors may just need a simple re-sign-in
Zapier Automation
This works great for things such as orders or email confirmations
It's quite easy to setup and can save you time trying to code an integration yourself
Buying Back Your Time
What is it?
So if you've automated everything you can automate, you can also buy back your time
The process of this is outsourcing tasks to other VAs or employees
This is going to depend on your business and your product, also what you're looking to pay for
This allows you more time tow work on the business instead of in it
Pay for low-level, uninteresting, or repetitive tasks
For example
If your time is worth $100/hour, hiring someone at $15/hour nets you a $85/hour difference
What tasks to pay for?
Customer service
Social media posting and scheduling
Appointment booking
Accounting
Media buying
How much does it cost?
It will depend on which country you are hiring from
The cheapest countries: India, Pakistan, Phil
Hourly ranges can go from $5 USD and up
This can be cheaper if you are hiring for longer timer basis
The Process
Post a listing
Tasks, pay, hours
Filter candidates
Test candidates
Hire for test basis
When to Issue Refund
This will depend on a few things
Why was the refund requested?
How much is the refund for?
Are you worried about negative reviews?
Did it cost you to provide them a service?
This will be up to you whether to issue a refund. Personally, I will always issue a refund if it's a reasonable amount. If it's a lot - I will negotiate down
Not issuing a refund can lead to:
CC chargebacks - also come with a $15 fee
Negative reputation
Be Mindful of Power Users
How to thing about additions
Power users' influence:
Power users are often the most vocal and engaged users
Their needs and prefs can heavily influence product development
But...
Focusing solely on pwoer users can lead to a more complex product
New users may struggle to understand and navigate it
Can you hide these power features? Can you remove something else that is not being used or that is not core to the product's goal/mission?

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