Software providers will often structure their fees/contracts to indirectly embed switching costs.
Businesses may be loathed to leave a suboptimal product due to excessive implementation fees, fixed term contracts and/or fees for data transfer once a decision to switch is made.
Are software providers worried about losing customers without these restrictions? This is not a great basis for such an important relationship.
In SaaS businesses like foundU two crucial metrics are revenue churn rate and retention.
During FY22 we lost less than 1% of our revenue because of customers leaving and we received 33% more revenue from the customers we started the year with (revenue retention).
The foundU team is extremely proud of these exceptional data points. Our mantra is simply to have the best possible product in the complex and crucial space of HR, workforce management, and payroll.
A great product speaks for itself. Empowering businesses is one of our core values.
At foundU, we do not charge implementation fees, nor do we require fixed-term contracts or charge excessive amounts for data transfers.
Our customers may leave anytime – quickly, seamlessly, and at no cost. The fact they don’t speaks volumes for our product and our support team.
Want to know more about foundU? Book a Demo.