Tips to Recover Recurring Payments from Your Customers
In the corporate sector, many businesses and companies face the issue of payment recoveries. Many customers do not pay recurring charges in time. And to recover payments from such customers is not an easy task. Customers need to be contacted again and again. And if you do not manage it the way you should, forget about recovering even a penny. The reasons for the late payments or no payments can be varying, but the focus of the businesses is to recover payments. The strategies to recover payments from different customers can be different. But the target is to recover payments and retain the customer as well so that your small business finance always keeps improving.
How Can You Recover Payments from Your Recurring Customers.
Good Communication
The first rule of recovering payments from recurring customers is to communicate with the customer effectively. Make your customers feel that they are important. Contact them, and it is better to make a calendar to communicate with those customers who pay you late. Contact them as per the calendar. Hire the best staff and the sales persons who have a command over luring the customers. Sales and payment recovery is an art. You need people who are experts in this art. You need people who can communicate with the customers effectively so that payments can be recovered from them.
Manage Involuntary Churn
Involuntary churn means that the customer did not cancel the subscriptions for your SaaS services or product rather it was because of some technical reason. Because of such technical issues, customers fail to pay you in time. When the payment is late, the system cancels the subscriptions for these customers. however, you need a recurring payment for a SaaS management solution that can at least give one chance to such customers to retry to pay their recurring fee. And that’s what we call churn management which is not voluntary. Letting go of the involuntarily churned customers is more like giving up on your customers with your own hands. So, manage the involuntary churn and retain your customers and revenue.
Dunning Management
For recurring payments for SaaS, you need dunning management as well. And dunning management is nothing but effective communication with the customer. However, recurring SaaS subscription payment management software offers automated dunning, and it is suggestible to opt for automated dunning management. By opting for the automated dunning, you will only need to select the template for the notifications or the emails that are to be sent to the customers to recover the payments. The scheduling of the dunning emails and notifications can also be done automatedly.
Manage Payment Failures
Payment failures are the biggest reason for the involuntary churn rate. And you cannot make a strategy to tackle involuntary churn without paying attention to the involuntary churn rate. So, manage the failed payments first. Make a strategy separately for the failed payments so that churn can be controlled. Also, the reason for payment failures is technical and there is no mistake usually from the customer side. And you need to make sure that you resolve the issue causing the payment failure and satisfy customers as well.
Most of the time, customers get annoyed when they are asked to retry to pay their recurring charges. So, again, at this point, communication with the customer is the thing that can help you the most. Contact your customers and make them realize that they should stay on board. Make perks for these customers part of your strategy. If you are looking for software for recurring payments for eCommerce, then you can opt for SusbcriptionFlow. It is one of the best platforms for recurring billing, recurring payment recovery for its offers automated dunning management.
