How to Keep Customers and earn a profit for your SaaS Business

Subscriptions are crucial to any SaaS business model.

In the beginning, it's the perfect solution. Your customers sign up for your services and each month, they're charged for their use of it. Simple, right?

Incorrect payment details can lead to one of the unspoken reasons behind customer losses in the SaaS industry--involuntary churn. It happens in situations where a customer does not recognize that they're making the decision, or if it is in violation of their wishes. Churn which is voluntary makes about 7.2 percent of the total churn as well as 7.5 percent of all churn on the SaaS space.

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We'll look at ways that you can implement these processes to your business.

The reason for involuntary and unsuccessful customer churn in a payment go together

The other aspect that is at the heart of each of these aspects is providing your clients with the best user experience. When you've put the correct procedures in place, it is possible to keep your customers happy and also generate income at the while.

Before you dive too deep into the ways to ensure your business's income is running it is important to understand what involuntary churn is. Picture a typical payment cycle that you've established to your clients:

• You sign them for the service you offer
• The payment date is set for the 28th day of the month.
• The charge that they make on the first credit card that is on file does not succeed.
• Your system sends your customer an email to inform the customer that their purchase was not valid and they might be unable access your service If they do not take immediate steps.
• The customer doesn't act in the initial attempt. their next try to charge the card to pay is unsuccessful.
• In the event of a third attempt at payment, the program deactivates their subscription and either switch users to a cost-free version or closes the subscription completely.

However, what the report can't demonstrate are the various reasons for failures in collection collections.

This is why planning for the possibility of involuntary churning is essential in ensuring that revenue is recovered. It can be done in a variety of ways including:

• Setting up a series of "dunning" emails to set up an ongoing series of reminders to clients to correct their payment card details or their processing preferences
•       Check how card details changes within the system. If a customer updates their information are they transferring it correctly to your payment system?
• Check that your credit card processing doesn't suffer from security issues at the processor, as well as preventing fraudulent payments.

Three steps could follow to recover your earnings and decrease the amount of uninvoluntary churn within your customer base.

Three ways you can use to try and collect revenue

1. You must ensure that your customers enjoy a the best experience when collecting the payment

We just entered into 2020 and now we live in an age when customers aren't expecting to receive payments automatically. They expect to receive it.

When you send invoices to your customers, and then requiring them to pay their subscriptions in person, not only does this create a level of hassle the invoices are sent out, it could also cause the payment to become delayed. Invoices get lost, even if they're not intended to be some customers might not be able to pay for them, which could risk their subscription.

One of the easiest ways to prevent this is to give your clients a smooth automatic experience when making their payment. The page for payment you design must not only provide them with an easy experience while they sign up to subscribe. The page should also make it easy to use when they want to alter the information of their payments.

Below are some ways to make sure that your clients' subscription payments are smooth and seamless:

• Establish a particular website or portal where users are able to update their information: A customer should be able to modify their details for payment whenever they require, but not only if the payment does not work. It is important to ensure that this option is available for your customers at all times.
• Safety first If a person inputs details for payment, it must be done so with encryption. Making sure your clients are safe with their credit card numbers is an essential part of protecting the security of their card. Which person would be working with a company who doesn't provide a safe way to pay?
• It's straightforward to access even if they're on a mobile device: Your clients are extremely engaged customers. Be sure that your payment page can be functional, no matter what kind of gadget they're using. If they can modify the payment details, it doesn't regardless of whether they're at an office or in their commute, there's a greater chances they'll be able to do so.
• Check that everything is functioning according to what it is supposed to: As great as technology might be, we know that sometimes it doesn't work. Make sure you check up the status of your transactions or change your websites to be sure they're working as they should be. If there's a problem, you might observe that your clients are trying to correct their details in their transactions but they're not able to.

     Through a subscription-based service, you can collect subscription payments on autopilot. Manages subscriptions through various payment gateways, and it is compatible with the majority of payments, currencies, as well as languages.

2. Allow them to breathe if the first installment fails

The possibility of payment failure is possible. This is the normal part of subscriptions.

If the card used by the client is not working it is recommended that they give the card enough time to understand why the issue happened. With the advent of technology like card updaters surfacing on the scene, information on cards is usually changed immediately. However, there are times when the information of a client in their account isn't current, which is when dunning emails become contributing.

This email shouldn't be used to contact your client about an unpaid due amount. It should instead be used to check in with your customer to make sure the payment is in order as well as give them the chance to amend their payment details, like this dunning email by Hulu:

• Make sure your customers know that the service you offer deserves their attention: Don't demand payment right off the bat. Instead, you should compose your email in a way to remind them of the amount they paid for your services in the first place. In the Hulu instance above this email reminds customers that they are able to continue watching their preferred shows after they renew the subscription.
• Be brief and simple: Don't send a lengthy email in the same way you write an entire novel. Cut it down to just two or three paragraphs and be sure that every email contains an explanation for why it's there. This could include a reminder to the client of the benefits your product offers to them, followed with a quick explanation of the paid-for transaction that failed. It is important to ensure that your message doesn't focus solely on the failed transaction However it is important to emphasize that if the client does not take action, you will revoke their membership.
• Create a basic CTA Similar to what Hulu did in their email above. Instead of adding an "pay immediately" button, remind the user that it's easy to "reactivate" the account. Make sure to include a simple CTA for your customers to make sure that he is aware of what they must do in order to keep their subscription.

In the next step, you must ensure that the update process is as seamless as possible. It is recommended that the CTA should link directly to an update for your card webpage that responds to any device the consumer is currently reading the mailer on. Remember that the easier it is for consumers to make changes to their account details is the more likely they are to be able to finish the procedure.

3. Don't be afraid to give you an opportunity to try again.

You must offer your customers the possibility of understanding the reasons they have had their payments bounced and then cooperate with them to suggest solutions to their subscription.

In the event that you fail to make a payment, don't immediately delete their account, or even remove them from your customer database. Instead, reach out to them to ask what they can do for you to help.

You can offer:

• Make sure their subscription is active, but at a cost lower than they will be able to afford.
• Change them to a no-cost version for at the moment.
• Stop their account

When it comes to SaaS particularly when you're selling expensive products and you're not going to let your customers off immediately after their initial payment is rejected. It could be that they've hit a tough economic situation and aren't able to pay for their subscription this moment. If this is the case, it's possible to offer to transfer the customer to a lower-cost version of your service and/or stop their subscription until they are ready.

Of course, treating your customers well in the event of problems regarding their transactions will help keep them satisfied. They need to be assured that you are able to handle the unpredictable fluctuations that are part of managing a business. But pausing their account, rather than removing it means you don't have to put them through the process of reconnecting after they've renewed their account.

It's a win-win for you--and your customers.

The process of recovering failed payment is the most important aspect to reduce churn that is involuntary

If the methods don't work, they fail, you must establish the right procedure that will not just recover your profits, but also keep your customers too. If you pay a customer fails, your first communication with them shouldn't be just seeking to recover their funds. The goal should be to contact your customers, inquire if they are experiencing any issues or issues, and then try to resolve the issue.

Customers are the heartbeat of your company, and the fact that you're able to make money doesn't mean you'll lose them. On the flip side when you take the right approach, there will result in an enjoyable experience for your customers and your business.

Kimberlee Meier Kimberlee Meier is a Content Writer with B2B/SaaS that helps start-ups speed up their progress by creating high-quality continuously updated writing. The workshop she runs is located at kimberleemeier.com

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