For online subscription-based businesses, customer cancellation (or churn) is a normal part of life. You can offer the best service at the best price, and you’re still going to lose customers eventually. Unless you are personally handling customer service, there’s rarely a chance to respond to a cancellation request the moment it happens. If only there was a way to reach out and try to entice a customer with a personal, last-ditch appeal to reconsider. Wouldn’t that be great? Retention offers let you do just that, by presenting your customer with a discount offer the moment he or she clicks the Cancel button or tells your customer support rep to end their subscription.
SegPay merchants can create Cancel/Keep retention offers that incentivize customers to continue their membership at a lower price instead of canceling. Since we first introduced Cancel/Keep offers, merchants that set one up have retained over 5% of customers who initially wanted to cancel. That may not sound like a lot, but recurring-revenue business owners know that the longer you can retain any customer, the higher lifetime value that customer brings to the business while reducing overall customer-acquisition costs. Even with the retention discount, the cost to keep the customer is far less than the cost to acquire a new one. Once you’ve already invested in the marketing and sales efforts that brought the customer in the door, all recurring revenue from that customer is gravy. Retention offers help keep the gravy train chugging along.
Third-party billers, like SegPay, can set up retention offers for you, making sure discounts are presented wherever your customer requests a cancellation – online or over the phone – while also tracking the effectiveness of your offers. Please contact us at: [email protected] to discuss how retention offers can help your business.