Minimize Lost Revenue & Increase Customer Retention In SaaS
The SaaS subscription market is large and growing continuously, it’s more important than ever for SaaS companies to focus on customer retention. Involuntary churn can have a significant impact on a company’s bottom line. Similarly, you want to prevent voluntary churn as well. We will discuss both things shortly.
Ways To Reduce Involuntary Churn
Use In-App Pre-Dunning Messages
These messages can remind customers that their payment is coming up and encourage them to update their payment information if necessary. You can also use pre-dunning messages to inform customers about changes to your billing process, such as an upcoming price increase.
Send Payment Reminders Via Email
Customers who receive payment reminders are likelier to make their payments on time. One study found that email reminders increased the likelihood of on-time payments by 7%. Email reminders can include links to update payment information or instructions on how to make a payment.
Payment Gateways With Built-In Fraud Protection
When choosing a payment gateway for your SaaS business, choose one with built-in fraud protection. It will help reduce the chances of fraudulent charges being made to customer accounts. Fraudulent charges can not only lead to involuntary churn but can also damage your company’s reputation. Using a payment gateway with built-in fraud protection can help reduce the risk of fraud and keep your customers’ accounts safe.
Email Customers Before Their Credit Cards Expire
It can help to avoid failed payments due to expired cards. You can use a customer’s billing information to email them before their card expires. You can include a link to update their payment information in the email. It will help reduce involuntary churn by giving customers a heads-up that their credit card is about to expire and making it easy for them to update their payment information.
Send Post-Dunning Emails
These emails can thank customers for updating their payment information and reassure them that their subscription will continue without interruption. Post-dunning emails can also include helpful links, such as a link to how to make the most of your product/service. You can help reduce involuntary churn and improve customer satisfaction by sending post-dunning emails.
Offer Grace Periods
If a customer’s payment fails, you can offer them a grace period during which they can still access your service. It can help avoid customer frustration and ensure they keep their subscription. Grace periods can be a helpful way to reduce involuntary churn.
Use In-App Notification
In-app notifications can also remind customers of upcoming payments or encourage them to update their payment information. Notifications can include helpful links as well. You can also use notifications to inform customers about some updates to your pricing or new features.
Following these tips can reduce involuntary churn rates and keep your customers happy. In doing so, you’ll also be able to improve your bottom line.
Tips For Voluntary Churn Management
Collect And Act On Feedback
When it comes to voluntary churn, the best way to reduce it is to collect feedback and act on it. It can be done in several ways, including customer surveys, focus groups, or one-on-one interviews. Collecting feedback and working on it can reduce voluntary churn and prevent lost revenue.
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Offer Alternatives To Churning With Offboarding Flows
It’s also important to offer alternatives to customers considering cancelling their subscriptions. It can be done through offboarding flows, which provide customers with information about other products or services that might be a better fit for them.
Following these tips can reduce voluntary churn in SaaS, keep your customers happy, and improve your bottom line.
Time To Gear Up For The Upcoming Black Friday To Minimize Churn & Maximize Acquisition
The holiday season is nearly upon us, so it’s time to start thinking about how you will gear up for Black Friday. Black Friday is one of the busiest shopping days of the year, and it’s also a day when many retailers offer discounts on their products.
If you’re a retailer, you know that Black Friday can be a make-or-break day for your business. The goal is to minimize customer churn and maximize customer acquisition. To do this, you need to have the plan to ensure your store is ready for the influx of shoppers.
Here are some tips to get going:
- Plan your promotions carefully. You want to offer discounts that will attract shoppers while keeping your margins intact.
- Make sure your inventory is in order. You want to have enough popular items rather than have enough of something that doesn’t sell well.
- Train your staff on how to handle the increased customer volume. They need to be able to stay calm and efficient under pressure.
- Have a plan for dealing with returns and exchanges. There will inevitably be some, so it’s best to be prepared.
- Promote your Black Friday deals early and often. Make full use of social media, email marketing, and other channels to reach the maximum number of people.
Following these tips can minimize customer churn and maximize customer acquisition on Black Friday. Give your business the best chance of success this holiday season by being prepared.
Are you offering a subscription service? SubscriptionFlow can help you keep your subscribers happy and reduce churn. We provide a range of features that make it easy to manage your subscriptions and business growth.
To learn more about how SubscriptionFlow can help you reduce churn, book a demo today. We’re here to help you succeed!
