May 13, 2020
Voluntary and involuntary cancellations are inevitable for any subscription-based business. This is why sometimes businesses struggle to keep their revenue flowing from recurring payments. For any company, business growth and revenue generation is based on one-time and recurring payments which are why a decrease in payments can be debilitating. So what exactly happens when companies experience a dip in their recurring revenue? Well, most of all recurring revenue is affected which is the backbone of any subscription-based business. Any SaaS company is looking towards managing and analyzing their key performance metrics which also includes churn rate, monthly recurring revenue, as well as annual recurring revenue, etc. For your SaaS company, it is important to look at the consistency of their recurring revenue and customer subscriptions over a period. If there are discrepancies in the recurring revenue then it is likely that your business is suffering from a high churn rate.
Impact of Churn Rate On Your Revenue Growth
As a business metric, churn rate calculates the number of voluntary or involuntary cancellations from your customers over a period. Facing the churn rate is inevitable and cannot be avoided. Whether it is lack of interest, increased market competition or lapses in customer services, the churn rate is very much part of any SaaS business’s strategy. So how can churn rate be dealt with? Dunning Management for SaaS business is designed as a tool for dealing with involuntary churn. When it comes to churn rate, there are two instances. One where customer voluntarily downgrades their subscription plan from the paid version and another where failed payments due to credit card complications lead to cancelled subscriptions. When it comes to involuntary churn, many industry experts have pointed out how companies fail to design their communication strategy for clearing failed payments.
Reduce Churn with Smart Dunning
Usually, businesses have to manually track and chase customers for failed payments. However, this is not useful and immediately increases the adverse impact of churn rate on revenue growth. Whenever your company loses subscriptions, it is important that you have a strategy in place for remedying the situation. This is why SubscriptionFlow has introduced smart dunning tool for SaaS businesses to tackle their churn rate. As industry professionals, we have introduced dunning management as part of our subscription management software for the purpose of recovering due revenue. Moreover, Dunning Management for SaaS business will help you improve your communication strategy in regards to your customers. This way, you will be able to maintain suitable levels of customer retention but also improve customer relations as well. When you are manually tracking your customers for payments, it might leave a bad taste and impression on them. This is why our smart dunning is designed to make sure you can control email reminders sent to customers.
How does Dunning Management Work?
Dunning Management for SaaS business is the process of recovering lost revenue using subscription management software. With SubscriptionFlow, you will be able to manage failed payments and credit card declines which will send automatic email notifications after retries from the payment gateways. You can also set logic for sending reminders so your customers can come back and update their credit card information or resolve any complications with their credit card company. Dunning management for SaaS business helps users keep a record of any declined or failed payments which will help your design strategy for retaining your customers. For this purpose, using our intuitive dashboard for insights and analytics based on key performance metrics is also vital. By managing and reviewing your churn rate every month, you can easily design your retry logic and instances of email reminders to your customers using smart dunning tools in SubscriptionFlow. With automated payment retries and analytics for keeping an eye on your SaaS metrics, our users have no problem in managing their churn rate with our Dunning Management for SaaS business.
With SubscriptionFlow, our users can easily manage their churn rate with our Dunning Management for SaaS business and tools in our subscription management software. From deciding the length of their dunning cycle, retry logic, number of emails sent to their customers, and response if no payment is received, users experience improved recovery rate for revenue and subscriptions in no time. So, if you are looking to boosting revenue then choose the smart dunning tools you need with SubscriptionFlow.