A thriving subscription box company means constantly acquiring more customers, right?
Not so fast. While attaining new subscribers is great for your bottom line, the key to sustained and increased revenue lies in keeping your existing subscribers on board. We’ve crunched the numbers. Acquiring a new subscriber can cost four times more than retaining an existing subscriber.
So, how do you keep your subscribers? Payment issues are the leading cause for subscribers jumping ship. Here are four steps to combat failed payments and avoid involuntary churn.
Step 1: Determine Why The Payment Failed
A payment could fail for a myriad of reasons. For example, the account closed, there are insufficient funds, it’s over the limit, the card is expired, invalid, or restricted, etc. Determining the reason is important for how you will handle that specific subscriber moving forward.
Step 2: Payment Rescue Mission
Depending on what is uncovered as the culprit, you then have the intelligence to build a rescue mission to solve the problem. Whether that’s EFT collections or updating card information, you now have the information needed to fix the issue and prevent it from happening in the future.
Step 3: Catch Your Cash
Now that you have a plan of attack, this is where some people make the mistake of reaching out to the customer, which can trigger cancellation of service. Reduce your risk of losing a customer by updating the information without involving them. Even better, implement updates automatically to ensure customer data stays up to date to avoid declined payments in the first place. In addition, flexible payment schedules allow you to set the billing cycle around each customers’ lifestyle to ensure the funds are ready and available when it’s time to process the authorized transaction.
Step 4: Increase Average Customer Lifetime = Subscribers Like Woah
Preventing a failed payment allows you to increase subscriber retention by keeping disruptions at bay for you and your customer. Another key component of retaining subscribers is by regularly engaging with them at the right time. Cashi’s web-based service gives you the tools to stay connected with your subscribers faster and easier with the click of a button via phone, text, or email. Take your pick!
Don’t lose your customers due to a payment issue. Increase your revenue by ensuring subscriber card data is up to date and keep your cash flowing.
Cashi specializes in reducing the risk of you losing a customer. Visit cashicash.com to schedule a free demo and learn more about integrating Cashi’s software with your subscription company!