May 20, 2020
For SaaS businesses, surviving during this pandemic lockdown is tough. The main reason is how badly recurring revenue has been affected and customers are not necessarily attracted to subscription plans at the moment. However, all is not lost for subscription businesses as those using recurring billing software like SubscriptionFlow can easily recover from their leaked revenue and cash flow. The need of the moment is to make sure that you are retaining your customers enough to survive this period of recession. While we discuss how recurring billing features of SubscriptionFlow are helpful, it is vital to understand what SaaS businesses should be focusing on. First of all, customer acquisition is an important goal for any business but it is not attainable at this time and this is why customer retention is focused on. Typically, customer retention is said to be more cost-effective than acquisition. Moreover, when you are focusing on retention, your goal should be to stop customers from pulling back on spending on your subscription plans.
Even though it is difficult to acquire new customers and new purchases during this time, your goal should be to retain your customers and maintain your revenue flow. With our Recurring Billing Features like automated invoicing and smart dunning, you will be able to tackle churn successfully. From pausing and postponing subscriptions to offering discounts, add-ons, and trials, our Recurring Billing Features are well equipped for SaaS businesses to survive during this pandemic. With our recurring billing software, retaining customers and improving your SaaS revenue. Moreover, Recurring Billing Features will help you devise customer retention strategies to survive. This would include launching social media and email communication to let your customers know about pausing or postponing subscriptions.
When you are using SubscriptionFlow, you will be able to focus on tackling churn and at the same time, devise strategies for working remotely. Our Recurring Billing Features allows users to quickly recover as all of your recurring billing operations like invoicing, customer accounts, SaaS metrics, cash flows, revenue recognition, customer portal, email lifecycles, and automated workflows for your daily operations, etc. So now that we have established why Recurring Billing Features are important for your SaaS business’ survival, it is important to discuss how SubscriptionFlow is helping businesses achieve retention and avoid high churn rate.
How to Survive with Recurring Billing
Surviving during this pandemic and resulting recession post-lockdown has to involve a strategy that involves Recurring Billing Features of our software. This will include offering credit notes to your subscribers or gifts in the form of discounts or coupons for loyal customers who might be struggling. This will allow you to improve your retention and your customers will not have to cancel their subscriptions. Your churn rate will become steadier once you have assured that your customers receive some form of relief during these times. Moreover, your marketing and social media ads designed around offering discounts to your customers should make an impressive impact on your customers. It will be more beneficial if your communication with your customer via email workflows are more personal and mindful to the current times.
Another important point is to offer multiple payment options like GoCardless, Apple Pay, or PayPal. This will allow those customers who are paying via offline sources will now have an option to pay online to avoid unnecessary contact. By relaxing deadlines for your subscription plans via pausing or postponing subscriptions, your customer churn will become steady and lower instead of increasing as harsh times approach. Giving discounted prices and offers to your existing customers is also another important way of surviving this lockdown. On the other hand, it is also important to note that offering trials and extensions by deferring payments will allow your customers to pay for their subscriptions later.
Tackle Churn with SubscriptionFlow
A very crucial tool for your churn rate which is a part of Recurring Billing Features of SubscriptionFlow includes smart dunning. This tool is defined as a way of managing involuntary churn, meaning that this tool allows users to send email reminders after multiple automated retries for making payment against customers’ credit card. This tool is designed to handle and recover leaked credit card payments via retries. Involuntary churn can be harmful to your recurring revenue and monthly recurring revenue. This is why we offer our users to maintain sound customer relationships by automating the retry process and reduce the rate of involuntary churn. You can set workflow for email communication and their frequency easily using a dunning management tool in SubscriptionFlow. From improving your customer experience via the customer portal, managing CRM, generating SaaS, revenue recognition, and deferred revenue reports to proration handling for an accurate and automated invoicing process, you will be well prepared. When you are using our Recurring Billing Features, managing your SaaS business growth and maintaining a steady flow of revenue and customer retention will be effortless.