On-boarding new customers to a subscription service can potentially result in ongoing, consistent revenue, if subscription renewals are managed carefully. Of course, the real profit comes in the subsequent periods as it’s significantly cheaper to serve an existing client than recruit a new one, companies should focus on customer renewal strategies that make the renewal process as quick and easy as possible.
Why Customer Renewal Strategies are Important.
At the time of renewal, the initial glow of your recruitment marketing efforts have worn off. After having used your service for a period of time, your customers should love it enough to continue paying. If they do, it should be simple for them to continue the relationship. Here are 9 renewal strategies that help you do most of the work for your customer so you can make the renewal as easy as just saying “yes.”
1. Opt-in For Automatic Renewals
The opt-in is the easiest way to guarantee a renewal: make it automatic. Remember customers generally like to have a choice, so make it clear at sign-up they don’t have to give notice of cancellation unless they manually select the auto renewal option.
2. Flexible Package Choices and Pricing
After some time with your product, customers may like some features more than others. Giving the option to downgrade to a streamlined package is better than forcing them to cancel. On the upside, offering a more enhanced product at the time of renewal makes the transaction even more profitable.
3. Multiple Renewal Methods
Imagine if you could only pay your bills by check. It would be a hassle to keep your accounts up-to-date, and you’d often pay late. Similarly, you don’t want your customers to have to go out of their way to renew. Especially if they are on the fence, the added administrative burden would be enough for them to not bother with a renewal. Make it hassle-free by offering many ways to renew.
4. Advance Notice of Expiry
Ideally you have ongoing contact with your customer. That makes them feel like part of your business family. Giving a one-month heads up of a pending expiration is a helpful reminder they have to take action. It also gives you an occasion to promote new product offerings or new options for contracts.
5. Grace Periods to Renew
Even if you send out a friendly note, customers may simply forget to renew their subscription. You want them to stick around. Sending an email a week after the expiry date saying you’ve offered a grace period of a month may serve as sufficient reminder for them to give their consent.
6. Mobile Friendly Renewals
The mobile phone is the go-to device for modern consumers. It’s not enough to just send a text or email letting them know it’s time to renew. Your messages should link directly to a renewal application that they can complete right then and there. That way, it becomes a task they can complete on the spot and not an item they add to a lengthy to-do list.
7. CRM and Billing Integration
High-volume subscription services may be labor intensive. You don’t want to dedicate that labor to reminding customers to renew. When you use a service such as Lightico that connects with your existing CRM and billing database, the renewal process is triggered based on information already in your system. There’s no need for manual tracking of customer status.
8. Renewal Automation
A sophisticated software solution can make the renewal process completely automated. After the renewal process is initiated, the solution can detect errors, such as saved credit cards that are due to expire. At the same time, automation makes it easy on the customer to choose to renew their subscription with minimal fuss.
9. A/B Testing to Optimize Renewals
An automated workflow for renewals can optimize the process, but it is always important to check in with the customer. Even if the renewals went off without a hitch, gathering customer feedback is essential to make sure their needs are met. Ongoing customer surveying and A/B testing can help you get it right.
No business wants to experience the attrition of its customer base. This can be largely prevented by making sure you reach out to those clients who want to stick with you. They should experience no barriers to continuing the relationship. Customer renewal strategies should include, automation, smart product offerings and ongoing review of methodologies reduce those barriers. Making renewals simple is an important way for your business to grow.