Roadmap to Increasing Subscription Customer Retention
Importance of Customer RetentionThe key to growing revenue and profitability
Two Sources of Subscription Customer ChurnManage each type to ensure best results
Recommendations to reduce Voluntary ChurnCreate Meaningful Customer Relationships
If increasing subscription customer retention is your goal, your customers need to feel their relationship with you is meaningful to them and they are continuing to receive value month after month. Subscription customers are trusting merchants with a very special, ongoing relationship that extends more deeply than the typical merchant experience with its infrequent, once in a while purchases. This means you need to deliver real convenience and value every month and the subscription must continue to provide what the customer expected. Customers are putting a lot of trust in you and expect you to deliver on your promises. Products and services need to arrive when they are expected, because you want customers to feel excitement and anticipation, not frustration.
One way you can be sure you’re providing value is by following up with your subscriber after an inquiry to poll them on their experience. This gives customers the chance to share their experience and provides valuable information that you can use to make positive changes and enhance the customer experience. And of course, listen to customer feedback, and take action as appropriate.
Recommendations to Reduce Involuntary ChurnAvoid payment friction
Why do failed payments occur?
Banks and payment authorization systems face the perfect storm of stressors:
- Growing fraud losses ($26.8B annually)
- Cybercriminals targeting the payments system with increasingly sophisticated fraud methods
- Massive growth in purchase transaction volume across digital channels (card not present transactions)