Historically, account management was a largely reactive role, with a primary focus on customer retention and addressing issues as they arose.
However, as competition in the market increased, SaaS account management evolved to become more proactive, strategic, and focused on building long-term customer relationships and achieving customer success.
This is why SaaS account management best practices have evolved, reflecting their increasing significance in today’s tech-driven landscape.
In the future, as SaaS continues to transform the digital workspace, these practices will become even more essential.
Best Practices in SaaS Account Management
In the current competitive SaaS market, the best practices enable businesses to nurture long-term customer relationships, increase customer lifetime value, and drive revenue growth.
By implementing effective strategies, account managers can guide customers towards realising the full potential of the SaaS product, ultimately fostering customer loyalty and reducing churn.
Effective Account Onboarding
Let’s make everything clear in the beginning; account onboarding is crucial for setting a strong foundation in SaaS account management.
This initial phase should focus on guiding new users through the product’s features and functionalities, equipping them to achieve their desired outcomes quickly and efficiently.
User provisioning and access control, along with defining clear user roles and permissions, are essential components of the onboarding process.
However, account onboarding is not just about providing technical access; it’s about creating a positive first impression and demonstrating the value of the SaaS product.
This can be achieved by tailoring the onboarding experience to the specific needs and goals of each customer.
Therefore, we should collect customer data through a welcome survey and use this information for customer segmentation.
This allows businesses to trigger personalised onboarding flows. The goal is to guide users towards the relevant features and functionalities that meet their specific requirements.
Proactive Communication Strategies
Once the initial account onboarding phase is complete, maintaining consistent and proactive communication is vital for nurturing the customer relationship.
Regular check-ins and updates keep customers informed about new features, product updates, and best practices.
Proactive communication goes beyond simply disseminating information and involves understanding the customer’s evolving needs and anticipating potential challenges.
For example, webinars can be powerful tools for educating customers about the product and the broader industry.
And once again, to optimise proactive communication, it’s critical to segment users by roles and permissions.
This allows for targeted messages that align with each user’s experience, enhancing engagement without overwhelming customers.
For additional reference on how crucial effective SaaS management is, kindly check “What is SaaS Management? How Does It Kill Shadow IT & Save Budget?”
Regular Account Reviews
Data from Gartner’s research reveals that most key account managers are responsible for managing an average of seven to eight key accounts.
This highlights the need for efficient and structured account review processes to ensure that each customer receives adequate attention and support.
Regular account reviews provide a structured framework for assessing the customer’s progress, identifying potential roadblocks, and collaborating on strategies for optimising product usage.
These reviews should go beyond basic subscription management and account security checks.
They should encompass a comprehensive evaluation of the customer’s overall experience with the SaaS product.
This includes understanding their current usage patterns, identifying any underutilised features, and exploring opportunities for expansion and growth.
By proactively identifying and addressing potential issues, account managers can prevent customer churn and foster long-term customer loyalty.
Personalised Account Experiences
Account managers who demonstrate a deep understanding of the customer’s business and objectives will provide tailored guidance and recommendations, which will help customers achieve their desired outcomes.
This personalised approach is one of the forgotten SaaS account management best practices. Please make no mistake about it.
One of the most effective ways to attract and retain your customer base is to show them that you appreciate them and make them feel valued.
It strengthens the customer relationship and increases the likelihood of renewals and expansion.
This includes customising onboarding materials, providing targeted support resources, and recommending relevant features and functionalities.
For your reference on how to rely on advanced SaaS user management tools, look at “Ditch the Spreadsheets: Here 5 SaaS User Account Management Tools.”
Data-Driven Decision Making
By tracking key metrics such as product usage, customer engagement, and support interactions, businesses can and will gain insights into customer behaviour and preferences.
This data-driven approach allows account managers to identify potential churn risks, understand the effectiveness of their strategies, and make data-backed adjustments to improve the customer experience.
For example, account managers can identify customers who are not fully utilising the product’s features or those who are showing signs of disengagement by analysing product usage data.
Similarly, tracking customer feedback and support interactions provides unquestionable insights into common pain points and areas for product improvement.
This data-driven approach allows businesses to continuously enhance their product and service offerings, aligning them with evolving customer needs and expectations.
For your insights on how data-driven helps you in SaaS management, kindly read “Do you Pay for Unused SaaS? How SaaS User Management Helps You?”
Cross-Functional Collaboration
Businesses must break down silos and foster open communication to ensure that all teams are aligned on customer needs and objectives.
The sales team can provide valuable insights into the customer’s initial expectations and goals, while the product development team can leverage customer feedback to inform product roadmaps and enhancements.
Similarly, customer support interactions provide invaluable data about customer challenges and pain points.
This enables the account management team to address potential issues and provide tailored solutions proactively.
By fostering cross-functional collaboration, businesses can and should create a holistic and customer-centric approach to account management. And all touchpoints must contribute to a positive and seamless customer experience.
For another reference of user management best practices to control expenses and improve resource utilisation, please refer to “SaaS Costs Spiralling? It’s SaaS User Management Best Practices Time.”
Security and Compliance Best Practices
Security and compliance have become core elements of SaaS account management best practices, especially as organisations increase their reliance on cloud-based solutions.
Effective security starts with comprehensive access control, ensuring that each user’s permissions align with their roles and responsibilities.
Research shows that nearly 44% of SaaS users have access privileges that exceed their actual needs, which poses significant security risks and heightens compliance challenges
Another often overlooked aspect of security is account offboarding, which involves securely de-provisioning user access and managing data retention upon customer churn.
Failing to offboard accounts properly can lead to data leaks and unauthorised access, particularly when former employees retain access to sensitive information.
Then, we need to monitor compliance metrics and respond to emerging regulations, which are vital to sustaining trust with clients and preventing costly fines.
For instance, non-compliance with SOC 2 requirements alone can result in substantial penalties and reputational damage.
SaaS companies that proactively incorporate compliance into their account management strategy—such as by automating user access logs and integrating them into a centralised dashboard—reduce these risks.
These top strategies in “These top strategies are key for enhancing customer lifetime value” are key for enhancing customer lifetime value.
How Octobits Drives SaaS Account Management Best Practices
Octobits centralises all license management within a single dashboard. This single dashboard gives your teams full visibility to monitor usage, allocate resources effectively, and prevent unnecessary spending on unused or redundant licenses.
To protect against shadow IT risks, Octobits continuously scans networks to uncover unauthorised applications, ensuring proactive security and regulatory compliance.
With a robust spend management feature, Octobits brings clarity and accountability to software expenses, helping organisations make informed, efficient investments.
In short, Octobits is the definitive SaaS user management platform, particularly for IT departments and managed service providers (MSPs).
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In Closing
The evolution of SaaS account management reflects the increasing demand for proactive, data-driven strategies, and SaaS account managers are leading the way.
Personalised experiences supported by data-driven insights allow account managers to anticipate and meet evolving customer needs.
Then, cross-functional collaboration ensures a unified, customer-centric approach across the organisation.
As SaaS continues to reshape the digital landscape, there is no doubt that these SaaS account management best practices will remain essential for driving growth, securing compliance, and building resilient customer relationships.
