Reduce money loss and increase your Monthly Recurring Income by managing the recovery of failed payments through different strategies.
Keeping customers informed about their billing and service status, and following denmark whatsapp mobile phone number list up on payment issues has multiple benefits.
Claims Management is the set of processes carried out to recover failed payments from customers.
Inevitably, even if users are willing to make payments, problems can arise when making payments, such as credit card expiration, incorrect billing information or insufficient balances. These situations are very common in companies that base their business model on subscription contracts.
Claims Management for SaaS
Why is it so important?
SaaS industries use management software that facilitates communication with users who are not registered for payments to avoid losing Monthly Recurring Revenue (MRR).
MRR
It is estimated that losses due to payment failures are around 9% of the MRR . Without a management system, that percentage increases.
Do customers always know about payment failures? The answer is no, so it is important to contact them to notify them of their current account status.
The most common errors are those related to card renewals and users forgetting to update their data in the payment method form. This usually happens especially when they do not log in to your product frequently.
Service Interruptions
With Complaint Management, service interruptions for customers are avoided. Imagine if you were left without electricity service for being late on a payment and without prior notice: the frustration and anger would be directed directly at the company. Well, the same thing happens in SaaS industries.
Customer Experience
Avoiding service interruptions also improves the customer experience and the company's relationship with them. In most cases, payment failures are not caused by dissatisfaction with the service. For this reason, sending reminders avoids many problems for users and also helps to gain their trust for long-term contracts.
Claims Management is the set of processes carried out to recover failed payments from customers.
Processes in Claims Management
Payment Failure
The trigger for activating Claims Management is a payment problem. From there, whatever the reason for the failure, the contact and recovery process will begin.
Email 1
The first contact is made through a notification email. Make sure to include a link to update payment information and troubleshoot issues. At this point, it is a good idea to have the text of the email well defined, which, in most cases, is written by a copywriter or a UX writer.
