5 Tips for your Customers to Renew their Subscriptions

We will discuss how your financial business partner can help you achieve a higher rate of successful payments and optimize the renewal of subscriptions to your services.

Having a payment management strategy helps you offer a good customer experience, increases retention and engagement of your services and allows you to obtain greater benefits.

In this article we explain some of the best financial practices so that your clients do not think twice about renewing your subscription to your services.

Validate customer cards with each subscription.

One method of ensuring that the card is valid (or that the customer has entered the details correctly) is the preauthorization. This does not imply any charge for the client and is carried out prior to actual invoicing. Preauthorization consists of requesting a charge of 0$ (if allowed) or 1$ to the customer card, although it is not finally deducted.

By verifying that the card is valid upon subscription, we will ensure that the renewal payment is also successful.

Reduce cancellation of subscriptions by optimizing your payment strategies.

One of the most common causes of failed transactions is the lack of sufficient funds on the card. However, there may also be other reasons why transaction do not proceed correctly and, in this case, we will use the analysis of financial data.

An example is to identify the customer's revenue cycles and collect the subscription in the days immediately after the client receives funds, which is especially useful if payment is made by debit card.

If you need information about financial data management, follow the link to learn about PayXpert tools.

Importance of updating personal data.

It is estimated that 3% of the cards registered in payment automation systems expire each month (without including those that are lost, stolen, or cancelled). Therefore, it is convenient to periodically check that the data of each client are up-to-date and allow the correct payment process.

Help your customers renew their subscription with correct payment methods.

Credit card is not the preferred payment method in all countries. In China, for example, only 1% of online shoppers use this method; however, 1 billion of them are active members of WeChat Pay, and 520 million of Alipay, the two giants of Chinese payment portals. This is also the case in Russia, where the MIR payment system accumulates 147 million users. One way to increase loyalty and get new customers is to offer these payment portals to your clients.

As financial consultants, the PayXpert team works to optimize the financial management and billing of our clients. Browse our website to know all our financial technology tools.