Offer Targeted Promotions and Renewal Incentives
Posted: Sat Dec 07, 2024 9:43 am
Keep An Eye on Competitors
Sometimes, a drop in your renewal rate may not be directly linked to your business but is more of a result due to your competitors. For example, if a new business enters the market, it could draw some customers away from your product. Your competitors may even decrease their prices to get a larger share of the market, which could lead to a loss of even happy customers. So, being aware of the movements of your direct competitors is something you might want to incorporate into your strategy. Make sure your value proposition is high so that customers are willing to pay for the superior value you can offer them.
Offering promotional discounts, and special pricing makes albania telemarketing customers feel like they’re getting a high-value product at the best rate can go a long way in improving your renewal rates and in succeeding to generate revenue. One technique for achieving this is by providing customers with discounted rates before expiration dates or attempting to re-engage customers who’ve recently canceled by offering promotional pricing. One way of doing this is to offer incremental increases in promotional discounts as customers get closer to their subscription expiry date. These may also attract customers who are still undecided about renewing and sealing the deal before they churn.
However, you’ll need to ensure you’ve thought carefully about your pricing strategy and can sustain the lowered prices you may offer. Every discount means a drop in your total revenue, so be careful of being too aggressive in this regard. A smart way to counter these losses is to use your data to target customers more likely to respond positively to your efforts. At least that’s how most SaaS companies witnessing customer success do it.
Get Rid of Renewal Friction and Prevent Involuntary Churn
A KPMG study suggests that 1 out of every three customer dropouts during the purchase journey is caused by media friction. You don’t want to lose your customer due to frustration that impedes their desire to renew. Make your renewal process as simple and frictionless as possible, and by doing so, this will prevent churn and boost the number of customer who choose to renew their subscriptions.
Speaking of churn, active churn from customers is noticeable and usually gets your attention, creating a sense of urgency to resolve any problematic issues. But involuntary churn is quiet and strips away your subscribers and revenue in the background much more quietly, going unnoticed until it’s too late. We have found that involuntary or unintentional churn often occurs because of failed payments. Read more about how to combat this in our article on reducing churn fast.
Sometimes, a drop in your renewal rate may not be directly linked to your business but is more of a result due to your competitors. For example, if a new business enters the market, it could draw some customers away from your product. Your competitors may even decrease their prices to get a larger share of the market, which could lead to a loss of even happy customers. So, being aware of the movements of your direct competitors is something you might want to incorporate into your strategy. Make sure your value proposition is high so that customers are willing to pay for the superior value you can offer them.
Offering promotional discounts, and special pricing makes albania telemarketing customers feel like they’re getting a high-value product at the best rate can go a long way in improving your renewal rates and in succeeding to generate revenue. One technique for achieving this is by providing customers with discounted rates before expiration dates or attempting to re-engage customers who’ve recently canceled by offering promotional pricing. One way of doing this is to offer incremental increases in promotional discounts as customers get closer to their subscription expiry date. These may also attract customers who are still undecided about renewing and sealing the deal before they churn.
However, you’ll need to ensure you’ve thought carefully about your pricing strategy and can sustain the lowered prices you may offer. Every discount means a drop in your total revenue, so be careful of being too aggressive in this regard. A smart way to counter these losses is to use your data to target customers more likely to respond positively to your efforts. At least that’s how most SaaS companies witnessing customer success do it.
Get Rid of Renewal Friction and Prevent Involuntary Churn
A KPMG study suggests that 1 out of every three customer dropouts during the purchase journey is caused by media friction. You don’t want to lose your customer due to frustration that impedes their desire to renew. Make your renewal process as simple and frictionless as possible, and by doing so, this will prevent churn and boost the number of customer who choose to renew their subscriptions.
Speaking of churn, active churn from customers is noticeable and usually gets your attention, creating a sense of urgency to resolve any problematic issues. But involuntary churn is quiet and strips away your subscribers and revenue in the background much more quietly, going unnoticed until it’s too late. We have found that involuntary or unintentional churn often occurs because of failed payments. Read more about how to combat this in our article on reducing churn fast.