Are you tired of spending time and resources on re-engaging subscribers? Does it bother you that you have to worry about failed payments that will negatively affect your total revenue?
– Read this blog post as it will explain how Reepay can assure retention of your customers.
Involuntary churn will hurt your business. It is not uncommon, that businesses loose 5% of their customers each month caused by invalid credit cards.
A failed transaction can occur at gateway issues. Gateways sometimes fail in transmitting credit card information to the processor, which makes the transaction non-acceptable. Problems with the customers credit card also exist, hence the customer can have insufficient funds or have temporary restrictions which hinder an accept of transaction.
As a subscription business it is important not to ignore failed transactions and to consider the importance of retaining your customers.
Reepay has a succesful method to handle retention. This is possible using a three step method. The three step method includes being proactive, providing service as experts and lastly, to initiate a dunning process.
Reepay has a system that proactively handles credit card updates to prevent failed payments. Many businesses ignore the fact that credit cards can expire or in other ways be unusable when charged. The failed transaction will most likely be handled with a dunning process after the payment day. Using Reepay, you can be proactive in preventing failed transactions before the payment day.
5 days before renewal, Reepay automatically validates all credit cards in the credit card network to ensure succesful transactions. In addition, Reepay will proactively the cards that is about to expire to prevent failed transactions.
At Reepay, we are experts in handling payments. One the payment day, Reepay will retry failed cards would have resulted in failed payments. This is possible because of our ability to react to more than 80 different acquirer error codes. If the customer has insufficient funds, Reepay will retry within a grace period. Reepay automatically aligns the payment with the payday.
The dunning process begins after the payment day. Communication with the customer becomes essential to ensure that he/she will continue as an active subscriber. During the dunning period, customized e-mails will be sent from your business to the subscriber while automated retries will try to recapture their revenue. Of course you can, easily adjust the dunning flow.
You can customize the emails that are sent to your subscribers from the Reepay administration. You can choose the number of emails when a payment fails, the visual look of the email and, of course, the content. After the first failed transaction, the customer will typically receive an email, informing about the transaction. The customer will most likely be asked to update his/her credit card information. A following mail will typically include that the customer is missed and that their credit card information should be updated if a continued subscription is desired. A final email will typically inform the customer that his/her subscription is about to terminate and offer a discount or coupon code. This is a classic maneuver used by many subscription businesses who seeks to re-engage customers. To make everything easier, Reepay collects statistics to measure opened mails- and success percentage.
As mentioned above, one of the major challenges for a subscription based business is failed transactions. Reepay automatically corrects up to 50 different types of failed transactions – transactions, which you should have spent time and resources on correcting. The capability to retry and restore failed transactions from your customers credit card can positively affect both your total revenue and your retention rate. Using a strong dunning strategy, you can restore up to 25% of failed transactions while you lower the chance of churn.
Simply, it will prevent involuntary churn and ensure continued subscriptions. Let’s sum it up:
With Reepays automatic validation of credit cards, you can prevent lost revenue, positively affect your bottom line and increase your customer retention rate.
Using Reepays dunning process you have complete control of how you want to communicate with your customers. Use your business’ tone-of-voice and individualize the emails exactly how you want them.
Retention of customers can be a lot of work to handle on your own. To validate, retry and communicate with customers takes times and effort. Save your worries and let Reepay help you.
Re-engage, attract and maintain a strong relationship with your customers by communicating in the best way possible. Initiating the last step, the dunning process, you get the chance to remind your customers about the value of your product. In conclusion creating a foundation for stronger relations and, eventually, more loyal customers.