Recapture declined card transactions and boost lifetime value today
One of the primary reasons for involuntary churn is simply the customer didn’t realize that their credit card had expired. This is incredibly common and fortunately for you, an avoidable cost and issue.
While you assume that customers are paying attention to their subscriptions, the reality is that these details are often overlooked and taken for granted. We all assume our subscriptions will continue and be renewed – and depending on the service, your customers might not notice that their subscription has ended. This is particularly frustrating when this customer was happy to continue with the subscription but due to an expired credit card, the subscription was cancelled thus, any recurring revenue is lost.
The good news is that you don’t need to stress over this kind of revenue loss. It is a fixable and preventable problem, and with our Decline Salvage solution, you can put an end to worrying about the impacts of involuntary churn on your business.
Losing revenue to declined card payments?
According to MasterCard, decline rates for recurring card billings average a startling 25-30% – that adds up to a lot of lost revenue from customers who don’t want to stop paying for your goods or services. With the cost to acquire a new customer 5 to 10X more expensive than retaining an existing one, involuntary churn has a significant impact on your long-term revenue streams.
You work hard to attract and keep your loyal customers. Losing any customer is bad enough, but losing loyal customers who want to keep paying for your products and services to card declines is particularly painful and affects even the most sophisticated businesses.
It’s important not to overlook how challenging it can be for you to get these loyal customers to renew subscriptions and payments that were inadvertently cancelled due to credit card expiry and other issues. You want to prevent any hassles and headaches your customers have with dealing with payments, authorization, updating information, etc. When your customers have to start from scratch with renewing a subscription and activating an expired account, the frustration level rises, the customer gives up and decides not to reactivate their subscription.