Tested Strategies to Reduce Subscriptions Involuntary Churn and Increase Customer Retention

Focusing on Involuntary Churn

  1. Soft declines are temporary authorization failures which may be successful upon re-trial of payment.
  • Insufficient funds
  • Card activity limit exceeded
  • Processing failures — timeouts
  • Expired cards
  1. Hard declines are permanent authorization failures that cannot be recovered and should not be retried. We estimate that 10 to 20% of declines are hard declines.
  • Stolen or lost card
  • Invalid credit card data
  • Account closed

Involuntary Churn Benchmarks

Tested Tactics to Improve Involuntary Churn

Prevent Payment Failures with Intelligent Payment Routing

Use Account Updaters

Implement a Smart Retry Logic Strategy

Use Pre-Expiration Billing to Prevent Lost Revenue

Use Dunning Techniques for Declined Cards

  • Say who you are. Be upfront and let the customer know from the start who is sending the email, to show credibility and grab attention. Include the brand and support agent’s name, even for automated emails — it’s a personal touch.
  • Address the situation clearly and directly from the start. Avoid getting distracted with brand talk or sales pitches. Be sure to include the key information related to the payment issue, the amount still owed and the subscription name.
  • Let the customer know what’s going to happen next. Tell the customer when the subscription will be stopped unless they pay.
  • Include the right ways to get in touch. Financial issues can lead to additional inquiries from the customer, so it’s vital to include information about how customer can reach you with timely questions. Foster an email dialogue by sending dunning messages from an email account that accepts replies.

Case study: How smart revenue recovery tools helped businesses fight involuntary churn

  • About 8% of automatic renewal revenue was recovered specifically with 2Checkout’s Revenue Recovery Tools, representing 5% overall revenue uplift;
  • 9% of new customer revenue was recovered with follow-ups on unfinished payments, representing a 3% overall revenue uplift.

Develop a Customer-Service Mindset

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

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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.

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