For a start-up with a small team like Taggun, prioritising limited resources can be challenging. Despite the difficulties, our success completely relies on where we delegate our focused energy.
At Taggun, we have a focus on a Customer-Centric Business Model. As discussed in a previous blog post, Taggun is a bootstrapped company. One-hundred percent of our energy is poured into our product and customers because we do not have the pressure to chase vanity metrics to please any investors and raise capital.
However, it is important to measure progress. In this post, we will discuss one of the metrics that we love – the Customer Retention Rate (CRR), which helps to ensure our customers are kept at the top of our priorities.
Customer Retention Rate
The CRR describes the proportion of customers that continue to use your product over a given period of time. Taggun currently has a Customer Retention Rate of 88.57% (calculated over 12 months).
The metric provides the ultimate insight into customer satisfaction, because it describes how many customers find our API valuable enough to continue working with us.
Three factors that have helped TAGGUN secure a high CRR
We offer one-to-one support for our customers and frequently have zoom calls to answer questions, get feedback and make the experience at TAGGUN as smooth as possible.
We try our best to grant requests for general improvements and new features for our customer community. When required, we also create custom models for individual clients.
We are always looking for new ways to evolve with (and for) our customers. There is a mutually-benefitting, and snowballing, relationship between Taggun and our customers to drive innovation. Our customers help us to innovate and develop, and in return we provide them with the tools support their creativity and innovation too.
In August 2020, we had a Zoom call with the Founder/CEO of Accountable. They gave us some feedback and ideas. E.g.,
- Improve accuracy in merchant name.
- Look into VIES services for European receipts.
We investigated and developed merchantVerification and launched the new VIES feature at the end of 2020.
The double-edged sword of Customer Acquisition Rate (CAR)
CAR appears to be an attractive metric for a business to focus on. Ultimately, business growth depends on the number of new customers you acquire every month, right? Well, it depends (like most things). We think that focusing on new acquisition can sometimes compromise the quality of our product for our loyal customers.
For example, we often receive feature requests to scan document formats other than invoices and receipts. It would make more sense if we are focusing on CAR to develop new features to address the new customer market. However, we usually put it at the bottom of the product backlog, as they rarely benefit our existing customers.
Bringing more people onboard with Taggun will always be exciting and vital for the success of the company. However, we understand that growth comes secondary to quality and that our choice to focus on boosting Taggun’s CRR, compared to CAR, will have the best overall impact for our existing and future customers.