If you are running a subscription-based business, you probably want to pay more attention to this strategy. According to research conducted by ValuePenguin by LendingTree, 90% of the US population are using credit cards.
Therefore, one of the major problems preventing you from retaining customers is credit card churning. This problem will not only cause you to lose customers but also lose revenue as well.
The secret is simply to make it much easier for customers to update their credit card information. Most people hate having to look up their account information and send an email or make a phone call to customer support.
When you take action, here’s what you will expect to see:
- Recover more failed payments
- Retain happier customers
- Preserves customer relationships, elevates your brand, and retains more customers long-term.
How To Implement This Strategy
- Prepare a list of customers who are currently on the payment plan
- Sign up for service from one company in the Recommended Resources below to help you pre-empt credit card expirations and send emails automatically to all customers whose cards are going to expire soon.
- What is going to happen is that PRIOR to a customer’s credit card expiring, three text messages and three emails are sent automatically to the customer, asking them to update their new card info online.
- Also, after a FAILED payment is detected, the system automatically sends the customer three emails asking them to update their card or add a new one, online
- After signing up, you’d have the option to update the emails being sent out to the customers. Make sure you don’t make this most common mistake.
- You will need to make sure the tone and language choice in the email are not sounding threatening or accusatory.