How to Retain Customers and earn revenue for your SaaS-based Business

Subscriptions are at the heart of any SaaS commercial business.

This appears to be an ideal design. Customers sign up to your product and, each month, they have to pay to maintain their subscription. 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 a client churns in a manner that they do not realize or are unaware of. Involuntary churn accounts for 7.2 percent of total churn across all industries in all sectors, and 7.5 percent of all it is within the SaaS sector.

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Let's look at the ways you can incorporate these strategies in your company.

What causes failed payments? Customer churn that's involuntary happens together

Another element that lies at the heart of each of these aspects is providing your clients with the best customer experience. If you have the right methods in place, then it's possible to keep your customers content and continue to generate income while doing it.

Before diving too deeply in the process of keeping your profits flowing It's crucial to understand what involuntary churn means. Imagine a process for payment you've set up for customers to use:

• They sign up for your service
• The payment is due on the 28th of that month.
• The first charge to their card on file fails
• The system will then send your customer an email informing the customer that their purchase was invalid and they will be denied access to your product if they do not take immediate action.
• If the customer isn't proactive, and the next attempt to charge the card fails as well.
• If you don't succeed in the third time to make a payment the system will remove the user's account, and then returns them to the free version of the software or completely cancels their account.

However, what this cycle doesn't show are the many reasons that could be causing the collection of payments to stop.

Planning for churn that is involuntary is vital to recouping revenue. The planning process can be in many different forms, such as:

• A method of setting up a set of "dunning" emails that create an ongoing reminder for your customers to change the details of their credit card or their payment processing choices
•       Check how your card's details are updated within the system. If the customer changes their information, is it carrying across the correct information to your payment system?
• Be sure that your processing is secure and free of security issues at the gateway, and can also block fraud.

Three steps that you can use to increase profit and reduce uninvoluntary customer turnover.

Three methods you could try to recover revenue payments

1. Be sure that your customers experience a a seamless experience for collecting payments.

2020 is only beginning and now we live in a world where individuals aren't expecting to be paid automatically. people expect it to.

If you're sending invoices and asking clients to pay their subscription in person. It's not only it's a method to increase burden on the customer, but this could cause an inability to pay. The possibility is that invoices will be deleted. Although it's unlikely to be intentional, some customers might not pay for them, and expose their account to risk.

One of the best ways to prevent this is to provide your clients a seamless automatized user experience when they are collecting their subscription fees. The payment page you create should not only offer your client an easy experience while making a purchase however, it should also make it easy for them whenever they want to make changes to their account details.

Here are some suggestions on how to make sure your customers' subscription payments a seamless experience:

• A dedicated page or portal for customers to change their personal data: A customer should be able to change the information associated with their payment whenever they need, and not just if the transaction is not successful. You should make sure this option is readily available to clients throughout the day.
• Security first: If a customer enters their payment details, they must do by entering them into the secure area. Be sure to ensure that your customers pay details are safe is an essential part of maintaining the security of their information. Nobody wants to do business with a firm who does not offer secure payment systems?
• It's simple to use even if they're operating a smartphone: Customers are engaged individuals. It is important to ensure that your website or payment gateway is responsive no matter what type of device they're making use of. If they have the ability to alter their details for payment regardless of whether they're travelling or at work, then there is a greater likelihood to be able to change their details.
• Check that everything works properly: As great as technology may be, we acknowledge that things can go wrong in the event that it's not working as expected. Be sure to check on your payments cycle or update webpages to ensure that everything is working as it should be. If not, it could be that customers try to alter their details about payment but they aren't capable of doing so.

     Through a subscription-based service, you can collect subscription payments on autopilot. Controls subscriptions through various payment gateways that support the most popular payment methods including currencies, languages and currencies.

2. Allow them to breathe if their first payment fails

A possibility of failure to pay could occur. This is the normal occurrence of games that require subscription.

So when a customer's card fails, give them some time to determine the cause. Since technology, such as card updaters, are being introduced and allowing card details to be changed in a timely manner. However, there are some situations where the card data isn't current This is the reason email dunning comes into play.

It isn't a good idea to harass your client about not being paid for a payment. It can instead be used as a way to check in with your client to verify that all is ok, and give them the chance to change the details on their payment, like this dunning email by Hulu:

• Let your clients be aware that your service deserves their money: Don't demand payment immediately. Instead, structure the email in a way that reminds your customers of that they were prompted to subscribe to your service initially. In the Hulu example above, this message reminds users that they'll be able to continue watching their favourite programs when they renew the subscription.
• Be brief and short: Don't send a junk email nearly as long of a novel. Keep it under two or three paragraphs. Make certain that all of them serve the purpose you're trying to achieve. A good example is to remind the customer about the benefits your service provides with a concise description of the transaction that failed. Do not make your email solely about the transaction that didn't work. But, it is important to emphasize that in the event that the person isn't proactive, it will impact their subscription.
• Make clear a CTA Similar to the way Hulu did in the email below. Instead of including a "pay now" button, instead they've advised the customer that it's simple to "reactivate" the subscription. Make sure to include a simple CTA to make sure that your customer is aware the steps they must take to make sure their subscription is still active.

Also, try to make updating easy as it can be. It is important that the CTA will direct users to an update your card page that is flexible to the device your client is checking the email from. Keep in mind that the more simple your customers are to change their credit card information as well as update their card information more likely they are to successfully complete the process.

3. Give your customers a chance--always

Make sure you give your customers the benefit of doubt regarding the reason why their transaction failed, and collaborate with them to offer up other options for their subscription.

If, for instance, they don't make their payments, do not instantly close their accounts or take them off your database. Instead, phone them and discuss what you can do to help.

There is a possibility of offering:

• Maintain their subscription at a lower level that they can afford
• Change them to a no-cost version of your software for at the very least a few months
• Shut down the account

If you're involved in the industry of SaaS particularly if you're offering a costly product, don't cut customers off the moment the first payment they make gets rejected. Perhaps they have hit an economic downturn and are unable to maintain their subscription right now. If this is the situation,, then suggest that they switch the customer to a lower-cost variant of your service or temporarily suspend their subscription until they are prepared.

It's no surprise that treating your clients well when they face problems with payment keeps them satisfied. They want to feel confident that you will be able to manage the varying peaks and troughs which are part of operating your company. When you put the account on hold instead of taking it off will save you from having to go through the process of onboarding again when they renew their subscription.

This is a win-win situation for both you and your customers.

Recovering unpaid payments is essential to cutting involuntary churn

In the event your customers fail to pay, you must create the right procedure to ensure that you don't only ensure that you get your profit back and keep your customers as well. In the event of the payment of a client not being able to get processed, the first interaction with them isn't just to get their refund. The goal should be in contacting your customers and asking them whether they're experiencing any problems or issues and then try to work with them.

Your clients are the vitality for your business, and recovering revenue doesn't necessarily mean they're going to go away. If you approach things right you will get favorable outcomes for your customers that you service and for your company.

Kimberlee Meier Kimberlee Meier is a content writer for B2B and SaaS helping start-ups accelerate their development with high-quality, evergreen writing. The workshop she runs is at kimberleemeier.com

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