December 23, 2015 | Authored by: Vindicia Team Blogs
How to win back lapsed subscribers
Winning back lapsed customers is a struggle for many businesses operating under a subscription billing model. When previously engaged subscribers cease to pay, what strategies can you use to get them back?
Have a customer communications lifecycle strategy
Losing subscribers is a fact of life in the business world, but there are ways to prevent losing your customers en masse. The first step is to develop a retention and communications strategy. Consider the different stages of the customer lifecycle and what kinds of messaging you should send at each point. For example, once you acquire a customer, you should go into retention mode, which includes billing notifications and other transactional messages, but also content that highlights the value of your subscription service.
Then, it's important to keep in mind what kind of messaging you will send when a customer does decide to cancel his or her service. Send out an exit survey to learn why the subscriber left, so you can use their feedback to improve your subscription service.
When a subscriber decides to cancel, it's not necessarily the end of your relationship. To win them back immediately, try a retention offer. The first option is to provide the service at a reduced fee for a limited time. You may also provide account maintenance for platforms where users may have built up content or developed a presence for a small fee. This way, you can maintain communication with these subscribers and potentially win them back in the future.
If the subscriber decides to cancel anyway, you can still keep this person on your email list and send him or her communications. Create an email list segment for lapsed subscribers and send re -marketing offers, such as free trials or updates when you have a cool new feature that might lure these customers back in.
Continue to update features
Often, subscribers quit a service because it no longer meets their needs or a competitor introduces features that are more attractive. The best way to keep customers is to continue to invest in your subscription billing platform to make it as good as it can be. For instance, MarketWatch predicted Netflix will continue to attract subscribers based on the quality of its original programming and a recent deal that will potentially enable the service to show the new "Star Wars" films.
Let go when you need to
Don't make it hard for subscribers to cut off their service. This could result in negative customer sentiments that won't win you any favors with your subscriber base. If you make unsubscribing a seamless and pleasant experience, you're far more likely to see customers again in the future.
Naturally, the most effective way to win back lapsed subscribers is not to lose them in the first place. Use a high-quality subscription billing business to reduce involuntary churn and make it easy to quickly add new promotions. Keep in touch with subscribers regularly and provide excellent customer service.
Which billing platform is right for B2C subscriptions?Download