Reduce Churn Rates through Subscription Management Softwareby Muzammil Khan Profession Blogger
Businesses that use the recurring revenue model are well-aware of the concern that arises due to churn rate. It can be quite an alarming state where organizations start losing their customers. This can be a major obstruction on the road to a healthy growth. However, the problem is significantly reduced with the integration of a Subscription Management Software. Understanding the reasons why customers terminate their relationship with the business is the first-step in rectifying the overall situation, and avoiding the problem to begin with. There are also instances where the customer involuntarily churns out. This can be accounted through a declined credit card, insufficient funds or when the card expires.
How to counterbalance failed payment attempts
When a payment isn’t received, a business can take the following course of action:
- Either the company should take no action and let go of that customer altogether, or
- The company should actively pursue that particular business.
The most effective way to retain the customer is through maintaining a regular flow of communication that sends notifications and makes a continuous demands for payments. You don’t want to adopt a behavior that comes off as nagging when it comes to a due payment. Instead, you can make use of a series of well- structured dunning management emails which will send a friendly reminder to your customers. You can also fully customize these emails with your own branding and send out alerts before putting the credit card in use.
How emails can enhance communication
- Send a reminder ahead of time informing customers that their credit card information is about to expire
- Provide notifications of successful or failed payments
- Alert customers to renew their subscriptions when the date of expiry is approaching
One thing which stands out about dunning emails is its ability to become automated and continue sending reminders until the payment is received or the subscription is terminated.
Subscription Management System is a robust system that can automate your entire billing system. Along with offering the best strategy for dunning management emails, it also features a powerful Billing and Invoicing Software that will help you manage complex billing scenarios. Whether you have to entertain a single subscription plan or multiple, you will notice how invoicing becomes easier than before. Having to create bills manually would be nothing short of a tedious task prone to errors and inaccuracies. However, with an automated billing system all these challenges are significantly reduced.
Tips for creating effective dunning management emails
Created on Apr 22nd 2019 06:23. Viewed 78 times.