How can you keep customers loyal and increase Revenue to your SaaS Business

Subscriptions are at the heart of any SaaS enterprise model.

It appears to be an attractive appearance. A customer sign-up for your services, and every month, they're charged for their monthly subscription. Simple, right?

Incorrect payment details can lead to one of the unspoken reasons behind customer losses in the SaaS industry--involuntary churn. It happens when a client doesn't realize they're doing it or consciously. Involuntary churn accounts for 7.2 percent of all the churn that occurs across all industries as well as 7.5 percent of all churn within the SaaS sector.

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Let's take a look at how to put these methods into play in your enterprise.

What is the reason for failed payments? Involuntary customer churn go hand with

One of the factors which supports all of these aspects is providing your clients with a top client experience. If you've got the proper methods in place, then you'll be in a position to keep your clients content as well as continue to earn money while simultaneously.

Before getting too far into how to keep your revenues running, you must consider what involuntary turnover is. Imagine a normal payment process which you've created to your customers

• Sign up to the product you sell
• They are scheduled to pay by the day of 28 in the month.
• The first charge of their account is not successful.
• The system then sends the customer an email advising the customer that their purchase is not valid and that they will be denied access to your products if they fail to take immediate action.
• Client doesn't do anything when they try again, then the next attempt of charging their card for payment also fails
• If you don't succeed in the third try to make payment, your system then will remove their account and change the account to a freemium one or even completely rescinds their subscription

What this cycle isn't revealing are the numerous factors that might have caused the failure of collection collections.

These are the reasons that planning for involuntary churn is vital to recovering revenue. It can be done by a number of methods including:

• The procedure of setting up a series of "dunning" emails that mail out a set of payments reminders to clients to update their payment card information or processing alternatives
•       Examine how the card information have been updated internally to the system. If a customer updates their personal data, are they transferring the correct information to your payment system?
• Make sure that your process is not in conflict with your gateway and prevents from fraudulent transactions.

Three steps that you can take to earn the money you earn and reduce customer churn that is involuntary.

There are three ways to recover revenue payments

1. It is important to ensure that your customers enjoy a a seamless experience when collecting payments

The year 2020 is just starting and we are in a world where consumers do not expect to receive the payment on a regular schedule; they would like that you do.

If you're still distributing invoices, or asking your customers to pay for their subscriptions by hand, it's not only an opportunity to add another layer of friction to the process however, it can also lead to the payment to become delayed. The invoices are lost and even if they're not it is possible that some customers will not be able to pay them or accidentally put their subscription in danger.

The most effective way to solve this issue is to provide your customers a seamless automatic experience when making their payment. The page for payment you design will not only provide your customers with an easy experience while they sign up to their subscription. The page should also make it easy for them when they need to change their details for payment.

Below are some methods to ensure that your customers' subscription payments are a seamless experience:

• Set up a specific portal or webpage where customers are able to update their personal details: A customer should be able to update the information about their payment anytime they want, not only if the payment does not go through. It is important to ensure that this option is accessible to your customers all the time.
• Security first When a consumer is entering their credit card details, they should do so within a secured space. Insuring that your customers' payment details are secure is a crucial part of making sure they are secure. Which person would work with a company which doesn't have a secure payment system?
• Let them use it easily, even in the event that users are browsing via mobile devices: Customers are engaged people. Check that your site or portal for payments is responsive regardless of the kind of device they're making use of. If they can update the details of their account regardless of whether they're working or traveling to work the more likely they are to complete the update.
• Check that everything works what it is supposed to: As great as technology may be however, it is known that at times it's not always functioning. Make sure you check up on your payment cycle as well as update page to make sure you're getting the results you are supposed to. If they're not, it may be that customers have been trying to change their payment information--they just haven't been able to do so.

     By using a subscription service you can pay for subscriptions on autopilot. It manages subscriptions through various payment processors and can accept all payment options as well as currencies and languages.

2. Let them breathe in the event that their first payment fails

The possibility of payment failure is a possibility. It's an inherent part of subscriptions.

When a customer's credit card doesn't work it is important to give them the time to figure out why it happened. With the advancement of technology, such as cards that update themselves, which are on the scene, details of credit cards are more likely to be updated in a timely manner. But there are times when a customer's card information won't be current, and that's where email dunning comes into play.

Now, a dunning email is not a good way to make your customer feel apprehensive about a missed payment. Instead, it should be used to contact the client to make sure that everything is in order, and offer the possibility of editing the information on their payments, like this dunning email from Hulu:

• It is important that customers know why the product you offer is worthwhile: Don't demand payment immediately. Instead, design the email in a manner to remind your clients why they signed up to your service first. In the Hulu instance above it is a message to customers that they will be able to keep watching their preferred shows when they renew the subscription.
• Make it brief and short: Don't send a long email similar fashion to the length of a novel. Reduce it to just only a few paragraphs and make certain that every email is directed to a specific goal. One might include a reminder to the client of your product's value which can be followed up with an explanation of the paid-for transaction that failed. Be sure to make it clear that the message isn't all about the payment which didn't work, but be clear that if the customer isn't proactive, it will impact the subscription.
• Create a simple CTA Just like Hulu did in their email cited above. Instead of putting in a "pay immediately" option, the company has reminded the customer that it's easy to "reactivate" your subscription. Include a straightforward CTA in order to make sure your client knows exactly what to do in order to ensure their subscription is still active.

Make the update process as smooth as possible. The CTA must direct the user to a payment update page that can be responsive to whatever device customers are reading the dunning email on. The easier the process for users to change their information on their accounts as well as update their information on their cards, the more likely to do it.

3. Give your clients the chance to be winners.

Always provide your customers with the benefit of the doubt about why their payment bounced, and collaborate in partnership with them in providing different options for their subscription.

In the event of, say, they fail to pay, you shouldn't close their account or remove the account from your database of customers. Instead, contact them and ask what you can do for them.

You might consider offering:

• Maintain their subscription however they can, but on a lower tier that they can afford
• Move them into an evaluation version of the product the moment is
• Close the account

If you're in the business of SaaS and especially when you're offering a product that is expensive it is important to not let your customers loose as soon they receive their first payment is denied. Perhaps they have hit the economic slump and aren't able to renew their subscription just in time. If this is the case, propose to change their subscription to a cost-free tier of your subscription, or suspend their subscription until they are prepared.

It is a given that providing your customers with a good service regardless of the issues they have with payment keeps them content. It is important to let them know that you're aware of the ups and downs associated the running of a company. If you put your account on hold instead of taking it off, will save you from needing to complete the process of getting them onboarded again once the subscription has been renewed.

You'll win, as will your customers.

The process of resolving the failed payment is vital to reducing churn involuntary

In case they fail, you need to implement an appropriate procedure to not just recover the money, but to retain your customers as well. If your customer's payments fail the first contact you make with them isn't just to get them back on track with revenues. Your goal is to follow up with your customers, ask them whether they're facing any difficulties or issues, and then try to work with them.

Customers are vital of your business. Receding profits doesn't mean you'll lose them. But if you do it right, it can yield a favorable outcome for the clients you serve and your own business.

Kimberlee Meier Kimberlee Meier is a B2B/SaaS Content writer aiding start-ups in their growth using high-quality and evergreen writing. Workshops are available at kimberleemeier.com

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