Customer Retention Generates Revenue, but Churn Creates Costs

Two things can happen when a customer’s payment fails: either your customer retention efforts are successful, or the customer churns. If they’re retained, you continue to generate revenue over the remaining lifespan of that active customer. But in the case of churn, you lose the customer and all their future revenue and LTV. Obviously, it’s […]

<strong>Subscription Business Insights: The Importance of Measuring Customer LTV</strong>

“You cannot manage what you do not measure.” This familiar saying is especially true for the subscription industry, which loses hundreds of millions of dollars each year by failing to track one key metric: customer LTV. The State of Subscription Business: Best Practices and Business Performance Drivers — our brand new study completed in conjunction with PYMNTS — takes […]

Understanding What it Means to be a High-Risk Merchant

Has the payment service provider you want to use for your subscription business deemed you to be a high-risk merchant? What does that mean and what can you do about it? You may be upset by their decision but being identified this way doesn’t mean you won’t be able to conduct business. Being a high-risk […]

Understanding Declines and Failed Payments

Every subscription business shares one enormous problem: failed payments. Failed payments are decline decisions on credit card authorization requests. But even though the problem is common, many businesses need help understanding declines and failed payments. According to Visa’s own data, an average of 24% of subscription credit card payments are declined by the card authorization […]

Updated Mastercard Merchant Standards for Subscription Billing Merchants Effective September 22, 2022

Here is an overview of the updated Mastercard merchant standards for subscription billing merchants that came into effect September 22, 2022. These apply to recurring payment transactions/subscription billing for the delivery of physical products or digital goods, but do not apply to payments for utilities, telecommunications, insurance policies, or existing debt. 1.)  Merchants must disclose […]

Recent Increases to Interchange Rates

 There were recent increases to interchange rates in April that may affect your subscription or SaaS business. Here are the key rate changes you should be aware of.   Changes to Visa The most notable changes for Visa include the Visa Product 1 CNP consumer and consumer rewards, signature, and signature prefer cards, where fees went […]

Give Me a Break! The Easiest Method for Increasing Subscription Customer Retention

Inflation has gone up substantially in the past few months and with it comes higher prices and job insecurity — not exactly the ideal environment for extra consumer spending, even if your subscription product or service is typically well-loved and needed. People are tightening their economic belts and that could mean more churn and reduced […]

The Best Ways to Recover Failed Payments and Save Customers

When you’re running a subscription or SaaS business with recurring payments, having some payments fail each month is a given. There is huge problem in the payment ecosystem because the card-issuing banks decline many legitimate transactions in their attempts to prevent fraudulent transactions from slipping through. Unfortunately, many companies don’t understand how much money they’re […]

I Feel Good! How to Create Positive Feelings About Your Subscription Business

When it comes right down to it, your subscription business is all about relationships. And just like any relationship, there are ups and downs, especially the longer you’ve had a customer. Of course, you want to do anything possible to prevent your customers from breaking up with you. Nobody wants a customer to churn. So […]

Survey Says! Using Customer Feedback to Improve Your Business

Are you looking for ways to improve your subscription business? Using customer feedback is one of the simplest things you can do to make positive change, increase customer satisfaction, and create revenue growth. Some companies may shy away from asking for feedback because they think it only means negative criticism. This isn’t necessarily true. Feedback, […]