How to Keep Customers, and Recover Profits to your SaaS-based business

Subscriptions are at the heart of every SaaS company model.

This seems like an excellent idea. A customer sign-ups for your service and, each month, is charged for the privilege of using it. Simple, right?

Incorrect payment details can lead to one of the unspoken reasons behind customer losses in the SaaS industry--involuntary churn. Involuntary churn occurs when the customer doesn't realize that they are making the mistake, or does it unconsciously. The involuntary portion of churn amounts to 7.2 percent of the total churn as well as 7.5 percent within the SaaS region.

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Let's look at the ways you could put these practices to your business.

What causes involuntary payments or failed payments? customer churn is a matter of hand

One of the pillars that support all of them is providing your customers with an outstanding service. If you've got the proper procedures in place, you'll be able to make sure your customers are happy and generate revenue at the simultaneously.

Before we go too deep into the ways to maintain your revenue flowing It's crucial to understand the definition of involuntary churn. Imagine a payment procedure that you've established to your clients:

• Subscribe to your account
• They are scheduled to pay on the 28th of March.
• The first charge they make on the card they have in their account is not successful.
• The system you use to send your client an email notifying the customer that their purchase was not successful and they may be denied access to your services should they do not take action.
• The user doesn't make any changes when they try again, and their subsequent try at using the credit card they have to make payments also fail.
• In the event of a third attempt to take payment, the software stops the subscription and then return them to an uncost version of the software or the account is canceled completely.

What this report doesn't reveal is the many reasons that could cause the process of collecting payments to stop.

This is why planning for involuntary churn is vital to recuperating revenues. It can be done by a number of methods such as:

• The process of setting up a sequence of "dunning" emails which create a loop of reminders for clients to change the details of their credit card or payment processing choices
•       Review how your card's details are updated within the internal system. If a customer update their details does it transfer the correct information to your payment system?
• HTML0Check that your process isn't affected by issues with gateways and prevents fraudulent transactions.

Three steps that you can take to earn the money and reduce involuntary churn from your customers.

There are three ways you could use to earn money

1. Provide your customers with a smooth experience when collecting payments

We just entered into 2020 and are in an age when customers aren't expecting to receive payments automatically. They expect that you pay them.

If you're mailing invoices to your customers, and asking them to pay for their subscriptions in person, this isn't just a way to increase the difficulty of the process, however, it could result in payments being delayed. There is a chance that invoices will be deleted. while not on purpose certain clients may not pay or accidentally put their subscription in danger.

The best way to stop the issue is to give your customers a simple automated experience when they pay for their subscription. Your payment page shouldn't just give the user an easy experience while they sign up for a subscription. It should also make it easy for them whenever they want to change the information of the payment.

There are several ways to assist your customers make their subscription payments effortless and smooth:

• Set up an additional portal or webpage that allows customers to update their personal information: A customer should be able to change the information about their payment at any time they like, not only if the payment is not successful. Be sure that this feature is available for your customers at all times.
• The first is security. When a customer enters their payment details is best done by entering them into a secure place. Making sure you keep your client's credit card details secure is essential to maintaining their security. Who wants to deal with a business who doesn't offer secure payment methods?
• Make it easy--even in the event that they're browsing on mobile: Your clients are very active individuals. Make sure your payment portal/page can be responsive regardless of the kind of device you're using. If they're able change their account information no matter if they're in the office or commuting and the greater chances they'll be able to do this.
• Check that everything works the way it should: As great as technology might be, we recognize that it can happen when it fails. Be sure to check on your payments cycles as well as update page to ensure the pages are working in the way they are supposed to. If they're not, it might be because your clients are trying to change their information on their payments however they haven't been able to.

     By using iPayment, you can receive subscription payments on autopilot. The service manages subscriptions through various payment options and is compatible with all major payments, currencies and languages.

2. Allow them to breathe if the first installment fails

Paying late can be a problem. This is a part of the subscription game.

If a credit card belonging to an individual fails to work, offer clients time to consider why it happened. With technology like card updaters appearing on the market, information about cards tend to be updated in a timely method. There are however instances where a customer's information on their card won't stay current. This happens when sending of dunning emails can be a cause.

Now, a dunning email shouldn't harass customers about missing payments. It should instead be used as a way to check in with the customer to make sure everything is working as it should as well as give them an possibility to change their payment details, like this dunning email from Hulu:

• Let your clients know that your service is worth their time: Don't demand payment in the first place. Instead, design your email in a manner which reminds customers of what they have paid for your services initially. For example, in the Hulu example above the message is a reminder for users to know that they will be able to continue watching the shows they like if they decide to renew their subscription.
• Make it brief and succinct: Don't send a junk email as long as an entire novel. Keep it to only a few paragraphs and ensure that each message has a specific goal. The goal could be to remind the customer about the benefits your service gives them, then followed with a brief description of the transaction that was not successful. Make sure that the message doesn't just focus on the transaction that didn't work, but rather be sure to emphasize that if the customer doesn't act to take action, they will lose the membership.
• Use a concise CTA Similar to what Hulu did in the email mentioned above. Instead of putting in"pay now" or "pay now" button and reminding the customer that it's simple to "reactivate" their subscription. Create a simple CTA for customers so they are aware of what they must do to ensure your subscription remains active.

Also, you should make the change process as simple as possible. It is possible that the CTA will direct users to a change in their payment page that can be flexible to whatever device the user is reading the dunning email on. Be aware that the simpler it is for customers to change their credit details on their card and the easier it is for them to do so, the more likely they will make the necessary changes.

3. Don't be afraid to give them a second chance.

Offer your customers the chance of knowing reasons for the bounce, and work in partnership with them to suggest alternative options in their service.

For example, when their payment fails you shouldn't immediately delete the account or delete them from your database. Instead, contact them and ask them what you can do to help you to help them.

It is possible to offer:

• Keep their subscription active at a lower level that they can afford
• Switch them to a free version of your program at this time
• Shut down your account

In the case of SaaS in particular, it is important to be aware that you are selling expensive products and you're afraid of letting your customers loose as soon the first payment is not successful. It could be that they've fallen off the bottom of their finances or are unable to renew their subscription just now. If so, offer to switch their subscription to a no-cost level of your service or suspend the subscription until they're at a point where they're ready.

Naturally, ensuring that you are able to treat your customers well when they are having problems with their payments will keep them satisfied. They'd like to know you can handle the fluctuating fluctuations that occur along the running of an company. In putting their account in hold, rather than removing it, saves you needing for the procedure of re-onboarding every time you renew your subscription.

You'll be rewarded, and so will your clients.

Recovering failed payments is key in reducing turnover

If they don't work during the time of failing, it's essential to create the correct procedure to not just make your profit back however, you should also retain your clients as well. In the event that the payment of a client is not successful, the first contact with them isn't just to recoup the money. It's important to check in with your customers and ask for their feedback on issues or have questions and attempt to work with them.

Customers are the vital lifeblood for your company. the fact that you're successful in making money doesn't suggest that your customers are likely to quit. In the opposite direction If you manage it right you can create satisfaction both for your clients and your company.

Kimberlee Meier Kimberlee Meier works as a Content Writer for B2B/SaaS, which helps startups fuel their development with high-quality continuously updated and always green material. Workshops she conducts are located at kimberleemeier.com

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