This year, clients are obsessed with fixing “churn” – proactively trying to stop customers from canceling.
There are two types:
Voluntary churn: Customers choose to end their subscription.
Involuntary churn: Customers lose access due to failed payment.
Involuntary churn accounts for ~40% of a business’s total churn rate.
Expired cards, technical glitches, insufficient funds, etc.
It’s a problem that significantly impacts revenue capture.
But, it can be fixed.
Solutions:
Optimize Payment Processing:
↳ Offer a variety of payment options and use a reliable payment gateway.
Proactive Card Updating:
↳ Implement services that automatically update expired card details.
Smart Retry Strategies:
↳ Use technology to identify patterns in payment failures and optimize retry timing.
Effective Dunning Management:
↳ Communicate clearly with customers about failed payments and offer flexible solutions.
Seamless Customer Experience:
↳ Make it easy for customers to manage their payments.
Remember, churn is both a ‘customer service’ and a ‘payments’ problem.
Don’t just address one side of the coin.
