Consider this:
→ Credit card declines affect 5-6% of all transactions.
→ Debit card declines? Higher, at 9-13%.
→ Alternative payment methods fail 7% of the time.
For subscription-based businesses, these numbers translate directly to lost revenue.
Involuntary churn—when customers unintentionally fail to renew due to payment issues—is problematic for most recurring revenue businesses as they scale.
A significant portion of these declines is preventable.
To combat involuntary churn:
◆ Ensure your billing descriptors are 100% accurate.
◆ Leverage automatic credit card updaters.
◆ Implement retry logic to recover failed payments.
◆ Notify customers when payment issues arise (dunning).
◆ Expand your range of alternative payment methods.
Involuntary churn accounts for up to 50% of your overall churn rate.
So, don’t just focus on the customer service side of things.
Fix the payments side too.
Hope this helps!
Retention is Revenue
Churn is now a boardroom problem. If you’re in the
