How to Switch Sleeping SaaS Subscribers Back On

Why is it important to reactivate accounts?

The more active the subscriber, the less likely they are to churn and the better it is for your bottom line. It’s been shown that increasing customer retention by 5% increases profits by 25–95%.

How to spot stalling clients before they fade away

For SaaS businesses with a large customer base and a primary focus on securing new subscribers, it can be hard to spot inactive, dormant or on the verge of churning users. But there are often clear warning signs if you know where to look, for example:

  • Declining engagement
  • Failure to explore and access key features
  • No interaction after initial signup
  • Unanswered support queries
  • Browsing cancellation pages or searching for lower-priced plans

Discovering and tackling underlying issues

Transactional data can help define ‘who’ is inactive but not always ‘why’. You may need to take a more direct approach. For example, sending inactive customers a survey or questionnaire, or reaching out through customer support. This can help identify common churn triggers and workflows to tackle them.

Four ways to enhance your reactivation strategy

But what do you do about users that have already stopped using your SaaS product?

1. Create ‘win-back’ email campaigns

Emails can be a great way to connect to lapsed customers. They offer a high degree of personalization and have a superior click-through rate compared to other forms of marketing. To avoid them being seen as spam, make the content as relevant and interesting as possible:

  • consider offering one-time discounts or incentives to those that fall into your ‘most valuable’ customer segment category to remind them what they’re missing.
  • include information on new product features/capabilities — FOMO is a great motivator, knowing that an important feature is in the pipeline and about to go live may be enough to prevent them churning.
  • personalize content linked to known interests/industries/positions to show them you understand their needs better than your competitors.
  • provide access to original content such as guides, eBooks, reports and tips. Add value beyond tech by sharing insight that helps them be and do better and that endorses your leadership.

2. Leverage end-of-trial opportunities

Many SaaS businesses use free trials to boost client acquisition but fail to activate the subscription at the end of the trial period. Sometimes users may just need a friendly nudge to commit. Having a dedicated communication and support plan for this stage of their journey can help safeguard your investment. Make them feel valued by asking for feedback on their trial. Find out what they’d like more off and show that you are there to support them. Use email and other social tools to reach out regularly before the trial ends. And if they do fail to renew, include them in ‘win-back’ campaigns so they can easily return.

3. Engage across multiple platforms

A good way to ensure your SaaS solutions are ‘front-of-mind’ with customers is using brand visibility to keep them continuously engaged. Reinforce your USPs, benefits and use cases through multiple channels. For instance, use targeted ads, leverage social media and create regular SMS alerts to support new feature and product notifications. Loyalty programs can also work well by establishing meaningful dialogue and incentivizing clients to stay.

4. Tackle Involuntary churn

A key area often overlooked by retention/reactivation strategies — and one of the biggest and most recoverable causes of lost recurring revenue — is failed payment authorization. With more than 1/6 card transactions for recurring payments failing for one reason or another, implementing strategies to reduce and/or recover declined authorizations is one of the best investments any recurring-revenue based business can make. For instance, SaaS businesses can uplift revenues by up to 20% using 2Checkout’s out-of-the-box involuntary churn tools.

Why it pays to continuously monitor engagement and reduce churn

For subscription-based businesses, the lower the activation rate, the more capital needed to maintain revenue. Therefore, a high activation and win-back rate indicates a higher potential for long-term success.

Reactivation is now a strategic priority for any subscription business

Dormant or inactive clients are a lucrative source of leads, whose revenue can fuel your subscription business’s growth. Working with a top-of-the-line subscriptions management provider can, therefore, have a considerable effect on your bottom line, while also enhancing the user experience for your subscribers.



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2Checkout (now Verifone)

2Checkout (now Verifone)

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