It’s never fun to talk about customer cancellations, but the truth is, the more you know about why members cancel, the better you can address customer needs and ultimately make your service better so you’re retaining more members over the long haul.
XBIZ has published another article by Segpay CEO Cathy Beardsley – this one based on some of the ideas for using retention offers to improve churn rates that we shared here earlier this year. Cathy expanded on those ideas for this article, titled “Burn the Churn” in XBIZ’s April issue.
It’s been almost a year since we first posted about our Cancel/Keep retention offers in which we shared the following statistic:
since we first introduced Cancel/Keep offers, merchants that set one up have retained over 5% of customers who initially wanted to cancel.
Back in July, SegPay CEO Cathy Beardsley wrote about customer retention strategies for subscription-based businesses, in particular how important it is to understand why customers are leaving (a.k.a., “churn”) before you can determine the best ways to retain them. Cathy defined a few different types of customer churn and suggested ways to combat each type:
Cancelled subscriptions are a fact of life. We’d love it if we could prevent every one of our members from cancelling. However, while that may not be realistic, we’ll soon be introducing a way to salvage some cancellations that may have been unintentional.
SegPay isn’t just a payments processor, we’re a customer support company too, handling consumer billing inquiries on behalf of merchants for more than a decade. This week we wanted to share a few lessons learned over the years; most are common sense but often overlooked.
Good customer service is a key to sustaining any successful business, but perhaps nowhere is this more true than in recurring revenue models, which depend on keeping customer memberships active over long periods of time; i.e., reducing churn. Of course, delivering the content or products customers want is the main way to keep them around. However, one could argue that it’s just as important to give them the type of support they want – namely, a chance to be heard; different ways to voice their thoughts and opinions; and a company that is responsive and caring in its communications. Do those things and you’ll keep your customers happy and loyal.
Please check out, Tips to Master Customer Subscription Retention, by Cathy, published on XBiz.com.
Churn of your subscription customers is one of the most important factors to look at when measuring the health and longevity of your business. Recurring billing models always see some regular churn, it’s just the nature of business with subscription programs. Merchants experiencing a higher-than-normal churn rate are losing out on potential profits, but the good news is they can implement marketing strategies to cut these rates and retain their base.
Live video chat services Streamate, IMLive and VideoSecrets together have more than 100,000 models streaming 24/7, and are the market leaders in providing live chat content to adult entertainment providers around the world. Did you know that SegPay has partnered with all three to offer these services to our merchants in the adult space? It’s true, you can white-label one of these live-streaming chat services – offering it to your members under your own brand – and generate a new, consistent source of revenue.
For online subscription-based businesses, customer cancellation (or churn) is a normal part of life. You can offer the best service at the best price, and you’re still going to lose customers eventually. Unless you are personally handling customer service, there’s rarely a chance to respond to a cancellation request the moment it happens. If only there was a way to reach out and try to entice a customer with a personal, last-ditch appeal to reconsider. Wouldn’t that be great? Retention offers let you do just that, by presenting your customer with a discount offer the moment he or she clicks the Cancel button or tells your customer support rep to end their subscription.