How to Leverage Subscription and Payment Metrics in Your Customer Success Workflow

You Can Monitor Payments and Subscriptions Automatically

The first and most obvious benefit to setting up payment and subscription metrics in your CS software is time. Specifically, the time you or your CSMs spend looking up that information & transferring it to a report or trying to compare it to other metrics to gain useful insights.

  • Have a full view of the account in one go;
  • Easily see connections with other metrics;
  • Stay on top of renewals & optimize them;
  • Fix payment issues before they happen;
  • Increase the speed of customer service.

You’ll Be Able to Increase Upsell & Cross-Sell Opportunities

You’ve probably heard that the likelihood of selling to existing customers can be up to 70%. Because you’re monitoring customers from all perspectives, including financial, you’ll know:

  • when to reach out for an upsell
  • when to reach out for a cross-sell
  • what to say to up your chances of convincing customers
  1. Set up an automated notification a few days before your customer needs to pay this month’s invoice.
  2. When you get the notification, analyze other metrics & health scores in the account, such as the number of features used and the number of features maxed out — prioritizing trial features, if you have any.
  3. Determine if the customer would benefit from an account upgrade & set up some short scripts for the possible replies.
  4. (Optional) Analyze the customer’s support requests to see their preferred channel of communication. You can also set up customer support metrics & health scores and track the number of requests per channel.
  5. Reach out and propose an upgrade directly! If possible, do so via the customer’s preferred channel.

You Will Find Innovative Ways & Metrics To Track

You can even move beyond these basic tactics of using payment metrics and determine some advanced stats to help in your customer interactions.

  • 0–30 days since last payment: green
  • 30 days since last payment: yellow
  • 30+ days since last payment: red
  • Then you can make the resulting health score high impact, therefore if it goes red, you’ll immediately see the global account health drop.

You Can Segment Customers Based on the Data

Segmentation is another cornerstone topic for customer success. In my Customer Health Score guide, I briefly mention you can segment customers based on the data received from payment, account, and billing software. Here are some metrics you can use for that:

  1. Total income. Tracking total income is an easy and efficient way to determine your customers’ spending habits within your product. Then once you have that data, you can prioritize and segment accounts based on it. How you support different segments is up to you, but having separate ones for large, medium, and small accounts is essential.
  2. Number of invoices due. By tracking the number of invoices due, you can tell how your customer uses your product. Maybe they’re purchasing many extra services or add-ons. Maybe they’re accumulating invoices due to payment issues. You can compare this metric with others and find out why. After that, creating user segments is the next logical step. Color-coding this one and adding it as a health score is also very useful.
  3. Number of invoices paid vs. account age. A ratio of these two metrics is also useful to analyze. A high number of invoices paid in a relatively short period means you’ve struck gold — that’s a customer that loves your product, loves your company, and can automatically propel your business forward by years. On the other side of the spectrum, if the ratio is low, maybe it’s time to reach out for an upsell.

You then Use Segmentation to Optimize Automation Playbooks

Based on the information you gathered from the previous tips, you can now make or optimize customer success automation playbooks for your new segments. 63% of customers want businesses to know their needs and expectations, no matter how unique. That number goes even higher to 76% when we’re talking B2B.

You’re Also Able to Define Lifecycle Stages Based on Renewal Dates

Remember what I said about intervals earlier? You can also use intervals and renewals as metrics to define lifecycle stages. For example, free trial customers are definitely in the early stages. After the conversion stage, you can determine a specific number of intervals or renewals that apply to each customer lifecycle stage: retention, loyalty, nurtured, and growth.

You Can Act Proactively to Prevent Payment-related Churn

Involuntary churn can be a bummer. It’s an unnecessary business detractor that can easily be circumvented by just implementing SaaS renewal best practices. But we’re here to think outside the box and move beyond typical best practices.

  • Expired cards;
  • Outdated billing info;
  • Uncertainty regarding recurring payments (the customer may think it’s recurring when it’s not or may have missed the option to make that payment recurring);
  • Hard declines — generally related to fraud;
  • Soft declines — typically when the card reaches its limit or multiple transactions happen simultaneously (rarely, but it happens).
  • Has this customer updated their payment info?

Customer Success is More than Just Metrics

Of course, tracking all these metrics and health scores is like having the tools for the job without actually doing it.

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2Checkout (now Verifone)

2Checkout (now Verifone)

2Checkout (now Verifone) is the leading all-in-one monetization platform for global businesses built to help clients drive sales growth across channels.