When it comes to customer retention, there's one stat we'll emphasize over and over again: acquiring new customers can be much more costly than retaining your current customers. Likewise, with just a 5% increase in your retention rate, your subscription business revenue could grow up to 25%.
In other words, there are plenty of reasons to work on your customer retention, which is not just about intentions: you need to acquire technological tools to, for example, simplify your customers' plan changes – to do it in one click and without friction – or recover declined payments (to avoid involuntary cancellations).
These tools will help you retain and build loyalty with your customer, significantly improving their experience, and all of these features are available on the Rebill platform in a single and simple integration.
In this way, you can reduce x10 technology times and costs in your company, compared to what would be required for in-house development of these features.
Here are the 3 customer retention features you should incorporate today into your online subscription business:
Every online subscription-based business that offers multiple plans, such as a SaaS company with subscription levels based on the number of products or features offered, must be prepared to update its customers' plans in a flexible and frictionless way.
This will bring greater profitability to your business, by making it easier to place more customers in higher plans, while avoiding delays or frictions that could lead to subscription cancellations: by using Rebill, you don't need to unsubscribe your customer from Plan A to subscribe to Plan B.
However, there's another "problem" that could arise: how to charge your customer the apportionment considering the period used on the first plan and the new amount to be paid? This could be another point of friction, where great operational agility and efficiency are demanded.
With Rebill, you can create groups of products (subscription plans) and manage plan upgrades and downgrades in one click, while the proportional cost will be automatically calculated and charged instantly and automatically.
This way, Rebill solves the operational and technological management of your plan changes, improving your customer retention.
Learn more in this article: ¿How to manage plan updates and cancellations in your subscription business?
In the path to retain and build loyalty with your customers, involuntary churn is often a big "enemy," as a failed payment – if not addressed properly – can result in the involuntary cancellation of a subscription, negatively affecting your customer retention.
However, Rebill provides you with a first great solution: automate large-scale recovery processes, defining the frequency of these payment retries, to recover – without technological or operational efforts – a large number of declined payments, turning them into successful charges.
How to achieve this? Learn about the case of Biury, a Rebill customer, who manages to recover up to 10.000 subscriptions in periods of 3 days to recover more than 50% of their failed payments:
Additionally, by retrying payments automatically and on a large scale, Biury achieves involuntary churn rates of less than 9% (when the industry average is 20%): read the full story.
However, how to solve those rejections that require specific action from your customer (such as changing the payment method)? In this case, clear and transparent communication can make a real difference in your customer retention rate.
First and foremost, you must access the reason for the rejection reported by the payment gateway (you can easily find it in the Rebill "payments" section) to understand the error message and the root of the problem.
Access our guides for declined payments to learn all of these error messages (which vary depending on the gateway), their meaning, and their solution:
Finally, also from the Rebill platform, automate communications with your customers via email and SMS, to always provide the context and appropriate action (such as retrying the payment, reviewing the data entered, or changing the card).
In addition, you can read our article to find other good practices: How to solve declined and pending payments in your subscription business?
Rebill is the complete hub of solutions your online business needs to manage payments, automate subscription billing, and retain more users, increasing your recurring revenue in Latin America.
Visit our website to learn more about our products and solutions or directly book a Demo with us.