Customer Retention

While customer acquisition is key to success, customer retention is the true indicator of predictable revenue and lasting profitability for subscription billing business models. Even the smallest increase in customer retention results in big revenue increases due to the power of Average Customer Lifetime Value (ACLV) - the average amount of revenue the merchant receives over the lifetime of their relationship with a customer. Vindicia's merchants typically experience a 6% lift in customer retention just by deploying our solution.

Better Customer Communication

Communicating with your customers at the right time in the right manner can greatly influence if a customer stays with your product. Vindicia CashBox includes the ability to trigger messages sent to your customers based on specific billing events. By carefully crafting and timing these messages, merchants can dramatically reduce cancellations and increase retention.

Reduce Payment Failures

Payment failures can happen for a wide variety of reasons (e.g., reissuing a stolen or expired credit card, temporarily exceeding a credit limit) and are a function of doing business online and accepting cards. It is important to ensure that a customer never leaves your service due to easily fixed payment failures. Vindicia CashBox helps our merchants mitigate customer losses due to payment failures by using advanced billing logic with smart business rules to retry cards, offering full integration with Account Updater services with payment processors, and also storing 'payment wallets' that have backup payment methods - ensuring that the highest possible percentage of transactions are successful.

Understanding and Minimizing Exit Paths

The flip side of customer retention is to understand why customers are leaving. Managing chargebacks is an important tool in understanding what causes customer attrition. Through automated reports, our merchants have a clear picture of why customers are leaving and are able to fix processes to reduce further customer attrition - thereby increasing ACLV.

Provide timely and appropriate retention offers when a customer chooses to cancel their account. Automatically offering them the opportunity to move to a different usage tier or another product increases customer satisfaction and retention; it is less expensive to keep an existing customer happy than to acquire a new one.

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