Customer churn from failed credit card payments makes a serious dent in the bottom line of your subscription business. Even if you’re using some sort of payment recovery, you’re still leaving enormous amounts of money behind. Outbound calling, emailing or texting, and using the pre-packaged payment recovery feature on your billing system just aren’t enough. In fact, recovery methods where the customer must provide you with an updated or new credit card contribute to churn by giving the customer an opportunity to decide that they don’t want to continue with their subscription after all. While you may recover a small percentage of payments on your own, the cycle starts all over again with more failed credit card payments and more lost customers month after month.
And that’s not even considering the revenue you were expecting over the lifespan of the subscription period, money that’s never going to come in if a subscription ends prematurely. That’s the true cost of losing a customer.
DO YOU KNOW HOW MUCH CUSTOMER CHURN IS REALLY COSTING YOU?
Flexpay’s Revenue Recovery Calculator
To help you easily crunch the numbers, FlexPay has created a dynamic Revenue Recovery Calculator. In just a few steps, the calculator shows you how much additional revenue you can gain in twelve months using our Invisible Recovery™ solution, whether you are already using a failed payment recovery system or not.
The calculator also gives you critical forecasts such as how many new active subscription customers you could see in the 12 months after launching FlexPay, your company’s potential growth rate, and the increased customer Lifetime Value (LTV) that Invisible Recovery™ delivers from recovered customers.
The Impact of Customer Lifetime Value
In a nutshell: You’re missing out on way more than just one month’s payment from each failed credit card payment if you aren’t measuring the full Lifetime Value (LTV) of your customers.
Can you afford to throw away that kind of money? Probably not.