Reduce involuntary churn by automating failed payment recovery with tools like ChargeBee and Churn Buster.
Involuntary (or passive) churn is the easiest revenue leak to plug, since these customers don’t intentionally leave your product. Unlike the customers who churn out due to an issue with the product itself, these customers churn out because of billing issues. It’s common to think failed payments and billing issues aren’t much of a big deal for your bottom line, what’s a few failed transactions? However, over the past several years, Churn Buster has regularly encountered companies with up to 50% of their total churn being attributed to those failed payments. Luckily, up to 70% or more of these payment failures are able to be automagically recovered through proper dunning. But for the remaining 30%, you have to implement a solid dunning management strategy so you don’t let too many customers slip through the cracks. Manual dunning can be overwhelming for your team. But you can use tools like ChargeBee or Churn Buster to create automated failed payment recovery campaigns. These tools allow you to customize your dunning process and create automated emails that are sent to customers who have failed payments. You can also set up retry schedules and payment reminders to ensure that customers are aware of their failed payments and have the opportunity to update their payment information. This helps to reduce involuntary churn and keep your customers engaged with your product. Step-by-Step:
