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BizReport : Ecommerce archives : February 22, 2017

Top tips to reduce involuntary churn

Renewal and retention are two keys to subscription service success, but these two areas can also hold cause for concern, especially when consumers find a reason not to renew. One expert shares his top tips to reduce involuntary churn.

by Kristina Knight

First, examine payment processing

"Companies need to know exactly what happens in the back-end system when a credit card expires or when a customer gets a new card. Some updates can be handled within the system; others require customer engagement. In either case, the solution is ensuring the right tools and techniques are in place and the information on file is proactively kept up to date. Proper communication strategies put in place ahead of time will make sure the information is always accurate," said James Gagliardi, Digital River.

Second, look at billing cycles

"A company might consider adjusting billing cycles and deciding whether to charge customers monthly or annually in order to help avoid issues when a card is declined. Also, think about working directly with the banks to help ensure that a credit card transaction can be attempted multiple times, or consider adjusting the company's process to charge customers a few days after their credit card billing cycle. These little tweaks can have dramatic effects," said Gagliardi.

Tags: Digital River, ecommerce, ecommerce billing, subscription ecommerce, subscription service trends

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