Like the original British WWII propaganda poster – Keep Calm and Carry On – inspired the British troops to keep on fighting, a similar inspirational message could be applied to SaaS and Online services companies around the world, but with a slight twist.
Retention plays a pivotal role in every SaaS and online services companies’ growth. It directly impacts customer lifetime value (CLTV) and is a key barometer of the health of your subscriber base. Companies that sell digital goods online need to understand how low authorization rates, payment failures, chargebacks and refunds impact retention and ultimately your company’s success.
There are two main reasons for churn: One, a customer no longer sees value in your service, or their subscription was unsuccessfully renewed. Payment failures are one of the top reasons of unsuccessful renewals, with customers risking service interruption due to issues into which they have little-to-no insight. Capitalizing on retention best practices is key to reducing payment failures and securing recurring revenue.
Understanding why your customers leave is critical to fine tuning your approach to keeping them. Retaining your customers requires more complex operations, tools and interactions. This is where self-service capabilities and customer engagement processes come into place, along with smarter payment optimization strategies.
Customer retention needs an inclusive, two-pronged approach:
- Proactive Retention Strategies for Payment Failures/Processing Issues
- Revenue Recovery for soft and hard card declines
- Intelligent Payment Routing of payments
- Account Updater for cards
- Decline Salvage
- Active Retention Strategies for Customer Satisfaction Issues
- Self-Service Customer Portals
- Chargeback and refund handling
- Dunning Management
To learn more ways to Keep Calm and Retain On,
- Watch Avangate’s Optimize Customer Retention for the New Services Economy webinar for guidance on how to increase your retention rate.
- Download Avangate’s Go Beyond Retention Whitepaper, which provides best practices on how to increase customer retention and secure recurring revenue.