If your business operates on the subscription business model, you’ll know for a fact how important customer retention is to achieving success. And of the biggest determiners of customer retention is how you deliver on providing what the customers want from you. Content providers and OTT media and entertainment businesses, for instance, understand that offering their users new and interesting content is important to keep them hooked and wanting more of what they offer—whether it be music, TV programming, news articles, podcasts and so on.
However, apart from the quality of content and services, a critical area that some businesses tend to overlook is payment processing. Making it convenient, timely, and hassle-free for your customers to pay for your products and services is also a key aspect of customer retention. The good thing is that technology-based solutions such as recurring payment software can help you run your business better and make it so much easier for you to create a sustained, seamless experience for your customers.
How can better payment processing systems help you in your goal to achieve customer retention and in turn reduce customer churn? Here’s a short rundown of the benefits:
Prevent Payment Transaction Failures
Did you know that among the top reasons for discontinued subscriptions is inadvertently missed recurring payments and failed payment transactions? This usually happens when a customer’s credit card enrolled in automatic billing expires, for instance, or when it temporarily exceeds the credit limit. Many automated payment systems immediately and indiscriminately halt the subscription service based on these red flags.
However, surveys and customer satisfaction studies have revealed that many customers are actually happy with their existing subscription services. The problem is that once their automatic subscription is cut, they are not likely to exert extra effort anymore to reinstate their subscription. This is why customer retention best practices such as automatic payment retrials and backup payment wallets are important. These are value-added features that a good subscription management software should provide.
Offer More Viable Payment Options
With the growing variety of payment options today apart from the traditional credit cards, your business should also be able to adapt and readily accept transactions through other payment methods. This is something that a proper subscription management software can also help you configure.
Develop Better Sales Plans
Subscription management solutions can also help you develop optimal sales programs. For example, have you ever wondered which subscription periods and prices are the most attractive for your target customers, and which ones are the most profitable for you? A subscription management software can assist you in creating the right packages, bundles, and offers that will help you retain your subscribers more effectively while spelling wider margins for your business.
Get to Know Your Customers Better
Retaining subscribers also entails a deeper understanding of their wants and needs. The right subscription management software helps mine and analyze valuable customer data so that you can gain further insight into their behavior and preferences. These in turn can help your sales and marketing efforts in pushing more relevant products and services, or recommending the right upgrades to existing subscription packages. Purchase and payment methods can be effectively analyzed so that you can send out more timely promotional messages and offers.
Holistic Customer Management Matters
Customer retention is a challenge that all subscription-based businesses face, but it is best tackled starting with the customer acquisition and sign-up process. Setting up a frictionless automated payment system right from the start and implementing the proper customer retention techniques ensure that you and your customers enjoy a mutually beneficial and satisfying relationship. Remember that once a customer is engaged, it is actually not that difficult to keep them hooked—rather, it is quite easy to lose them, so you have to be vigilant and prepared.