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Tips to Improve Customer Retention for Subscription Business PowerPoint PPT Presentation


Customer retention is crucial for subscription businesses to maintain and continuously increase subscription revenue. Businesses with subscription model can effectively maintain their subscriber base, but they can still improve the customer experience.Read to know some important things in customer retention strategy.Learn about customer retention solutions: https://www.vindicia.com/solutions/digital-customer-retention/

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Tips to Improve Customer Retention for Subscription Business

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Tips to improve customer retention for subscription business

Tips to Improve

Customer

Retention for

Subscription

Business

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

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Tips to improve customer retention for subscription business

Tips to Improve Customer Retention for

Subscription Business

Customer retention is crucial for any business, but it requires a more nuanced strategy

for businesses that use subscription billing. Companies utilizing a subscription model are

lucky in many ways because they can more effectively maintain their subscriber base,

but they can still improve the customer experience. Here are a few things to keep in mind

when creating a customer retention strategy:

"Focus on retention

optimization."

Identify metrics

The best way to prevent customer attrition is to outline

metrics to measure retention. In fact, as Kissmetrics pointed

out, retention optimization is often more crucial than

conversion optimization for subscription-based businesses.

The only way to effectively improve customer retention is to keep a close eye on the

numbers and track whether they move in a positive direction or not. Otherwise, there will

be too much guesswork involved in your retention strategy. The first step is to establish

baseline metrics to more effectively gauge success. Metrics will look slightly different for

every business. Here are some attributes businesses should consider tracking:

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.


Tips to improve customer retention for subscription business

Demographics: age, gender, location, etc.

Usage statistics: number of logins per month, participation in trials, etc.

Payment-related: number of chargebacks, payment failures, etc.

Departures: cancellations, refunds and opt-outs.

Calculating Average Customer Lifetime Value is also crucial. This number is the

combination of how long customers remain subscribed to the service and the billing rate.

This number is not only a crucial metric around retention. It also helps businesses more

effectively budget for acquisition strategies.

Great customer service

Much of the time, customers leave because of poor customer service experiences.

According to Client Heartbeat, it also makes sense to set key performance

indicators related to customer service. You may also consider providing incentives for

customer service reps to provide high-quality service, for instance, giving out bonuses to

staff who can resolve customer queries in just one phone call.

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.


Tips to improve customer retention for subscription business

Great customer service improves retention.

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.


Tips to improve customer retention for subscription business

Another element of customer service is making it easy for subscribers to answer their

own questions. With access to the Internet constantly at their fingertips, many customers

would rather look up the answer to their question then make a phone call. Be sure to

provide a section for frequently asked questions. Depending on your business, creating a

forum where customers can interact and resolve issues may be an effective means of

self-service.

Make it easy

If customers really want to leave, make sure the process is seamless. There are several

reasons for this. First, subscribers will have a better perception of your business if you

make the departure process easy for them. Second, if customers are not able to quickly

unsubscribe from a service, they may issue chargebacks instead of navigating a

complicated process. Since a higher number of chargebacks can cause transaction rates

to increase, it's better to keep chargebacks to a minimum.

Give random rewards

If you really want happy customers, providing random gifts helps. Once in awhile, give

subscribers a free month of service or allow them to upgrade for free. Customers will

often thank businesses for these gifts by maintaining their subscriptions for a longer

period of time. The idea behind this strategy is reciprocity. According to Help Scout,

people feel compelled to return favors. When businesses go out of their way to be nice,

customers will respond in kind.

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.


Tips to improve customer retention for subscription business

Finally, it's crucial to have a great subscription billing platform on your side. When you're

working hard on customer retention strategies, you don't want to lose customers to

involuntary churn from missed credit card payments. A great subscription billing platform

will also give you the flexibility to create new promotions to encourage upgrades and

ongoing subscriptions.

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.


Tips to improve customer retention for subscription business

About the Author: Bryta Schulz

Bryta joined Vindicia in 2013 and serves as Senior Vice

President of Marketing. She is responsible for building brand

awareness, creating go-to-market strategy and promotion, and

driving growth. With over a decade of executive level marketing,

product management and PR experience, Bryta has led

marketing teams in enterprise technology and SaaS companies.

Her experience includes heading product marketing at GoGrid,

PGP, RSA and Symantec and business development and

product management positions at Xcert, Thales, and

Persistence Software. Bryta holds a MA in Translation from the

Johannes Gutenberg University Mainz and an MBA from the

University of Reutlingen.

Visit our Blog for more information.

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.


Tips to improve customer retention for subscription business

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

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