#discussions
Thread
Curious if anyone has had success with any contraction mitigation campaigns? (Sales assisted or digital). Specifically for license-based SaaS where the main driver of contraction is low license utilization. We already have playbooks for CSMs to reach out if license utilization drops below a certain threshold at any time, but was wondering if anyone has taken a more nuanced (or completely different) approach to this.
Do you know what's causing the low utilization? (Turnover, don't know how to use the product, etc.)
60% related to cost and economics
40% around product-solution fit or low usage
@Clarke Conlon do you have existing onboarding and adoption nurture programs running? Whether that’s via email, in product, or through CSMs. Tbh my thought is that typically, when you get to the contraction mitigation stage, the rates of retention or flat renewal are pretty low. If you can dig a bit more into product usage early in the lifecycle to understand who’s signing up, how quickly they’re getting to an aha! moment, and what the average time to value is, you’ll have a better chance of keeping those contractions from happening.