Call for SaaS businesses to open up their eyes and check on what Harvard Business Review says
"A 5% increase in customer retention can increase profits by 25-95%"
Undoubtedly, customer retention is a critical aspect of any business strategy that needs more attention and proper action for its growth. It refers to the ability of a company to keep its existing customers happy and loyal over a long period of time so that they won't leave you.
Why should you hold them back?
85% of your revenue line comes from your existing customers. They stand as a base for your business; losing them will lose your entire growth.
Not only is it more cost-effective to retain existing customers than to acquire new ones, but loyal customers also tend to spend more and are more likely to recommend your business to others that boost your sales.
But how?
Look before you leap. Identify the issue of your customers before they become a reason for your churn rate. Addressing potential issues can help you keep your customers happy and coming back for more.
One such action is pre-dunning management, It helps SaaS businesses work effectively on customer retention.
By implementing customer retention strategies, companies can increase customer loyalty, boost profits, and gain a competitive advantage in their market. Learn more about pre-dunning management and how it can benefit your business.
What is Pre-Dunning Management?
Pre-dunning management is a proactive approach to customer retention that involves identifying potential issues before they become problems.
This includes monitoring customer behavior, such as changes in usage patterns or missed payments, and reaching out to customers to address any concerns or issues they may have.
Pre-dunning refers to the proactive management of customer accounts before they enter into a dunning process. A dunning process is a series of communications that a company initiates with customers who have failed to make payments on their accounts.
Effective pre-dunning management can significantly improve a company's cash flow and reduce the number of customers who enter into the dunning process. This is particularly important for businesses that rely on recurring revenue streams or have a high volume of customer accounts
By addressing these issues early on, businesses can reduce churn and increase customer retention on the go.
Here are some strategies on pre-dunning that highlight the importance of customer retention.
1. Monitor customer behavior: If a customer has not used your product or service in a while or has missed a payment, they may be at risk of churning. by Keeping an eye on your customers' purchasing patterns and interactions with your brand you can take proactive steps to address them and solve the issues. Also Look for signs of dissatisfaction or disengagement, such as a decrease in order frequency or a decline in engagement on social media.
2. Segment customers: Divide your customers into different groups based on their behavior or preferences. This will allow you to tailor your pre-dunning efforts to each segment's needs and preferences. By implementing this you can keep your customers engaged with your brand. This again reduces the risk of churn and concentrates more on retention.
3. Personalize communication: Use customer data to personalize your communications with them. Address them by name and include specific details about their past purchases or interactions with your brand. This shows that you value their business and are paying attention to their needs.
4. Anticipate issues: Use customer data to predict potential issues before they occur. For example, if a customer frequently cancels orders at the last minute, you could proactively send them reminders to ensure they don't forget to place their order. On the other hand, if they get their payments failed due to some other issue, send them personalized messages to make their payment again by giving them proper duration or a fair period of time using Dunning management.
5. Offer solutions: When issues arise, offer solutions that address the customer's needs. This could involve providing a discount, or offerings promo codes. By demonstrating that you are willing to go above and beyond to meet their needs, you increase the likelihood that they will remain loyal customers.
6. Follow up: After addressing an issue, follow up with the customer to ensure that they are satisfied with the solution. This shows that you care about their experience and are committed to providing excellent customer service.
By implementing these effective pre-dunning strategies, companies can reduce the likelihood of customers entering into the dunning process.
Proactively managing customer accounts will help companies to maintain positive relationships with their customers and avoid the negative impacts associated with dunning processes, such as customer churn and revenue loss.
It is so important to regularly monitor and adjust your pre-dunning strategy to ensure it effectively reduces churn and increases retention.
You should know these.
MYFUNDBOX is a subscription billing platform to help businesses handle recurring billing and revenue management operations integrated with payment processing decacorns like Stripe, GoCardless, and Mollie.
In partnership with Google Cloud, MYFUNDBOX provides a single platform to enable customer-preferred payments globally.
MYFUNDBOX's dunning management helps SaaS businesses reduce customer churn by providing automated reminders with payment retries to their customers in case of payment failures.
Your customers will also be notified through emails giving them chance to reattempt their failed payments so that you don’t lose your loyal customer base.
MYFUNDBOX supports businesses to reduce churn and stay risk-free by providing the advanced feature of dunning management. Being their favourite pie, we also support their failed payments through personalized messages and stand to get their payments on time.
Here is where you find everything for a SaaS business to save up your customers and enjoy long-term revenue.
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