Tell me if this sounds like something that has happened to you before. You spend a lot of time creating a quality, helpful informational product for your customers. You launch the new product and the sales start to roll in. You product is generating loads of new customers, all of which sign on to a payment plan to get your product. The problem? You deliver to them your product for 12 monthly payments only to see your customer payments fail in month 5 and month 6. What happened? You have just experienced one of the most common problems that information companies have today. Customer disengagement.
There are two primary forms of customer disengagement. Intentional and unintentional. Unintentional disengagement occurs when your customer’s credit card fails unbeknownst to them. This could happen for a variety of reasons, maybe an expired card, insufficient funds available, fraud, etc. The bottom line is that your customer did not make an intentional decision to cancel their payment or disengage with your company, but have disengaged nonetheless.
The other form of disengagement is intentional. This is when the customer makes a decision that your product is no longer generating enough return on investment and they willingly cancel their payment.
Both forms of disengagement mean the same thing for your company; failed payments, and lost revenue. So here are 3 quick strategies for addressing customer disengagement with your company.
Customer Disengagement Strategy #1: Have Clear Language At Checkout
When you set up your check-out be sure to include a checkbox that requires their initials. Accompany that checkbox with language that very clearly states what your customer is receiving and what the payment plan looks like. If there was ever a time to over-communicate, this is it. You must set very clear expectations with your customers here so that there is absolutely no doubt what they are agreeing to do and pay.
Customer Disengagement Strategy #2: Get Dunning Software
If you don’t have dunning software in place, you should. One of the primary benefits of having dunning software is its ability to update credit card information automatically. This will allow you to repair potential credit card failures before they happen and significantly reduce the amount of failed payments you encounter later. There are lots of good options out there, but a few that we like are Recurly, Churn Busters, and Stunning. All of these platforms can help you repair most the basic transaction failures.
Customer Disengagement Strategy #3: Recurring Customer Touchpoints
If you discover that your customers are willingly disengaging with your company then you definitely need to set up a system that helps you to re-engage them. One of the best ways to re-engage a customer is to offer monthly or quarterly touchpoints. This could be as simple as a basic email marketing campaign that keeps your customer up to date on the latest news in their industry and with your company, or a free content offering that compliments the product they purchased. Regardless of your method, the goal should be to have your customers interact with your business on a regular basis and to be reminded of the value you have to offer.
These 3 strategies will help you get on the road to re-engaging your customers. But if you want to put this on auto-pilot, or if you just don’t have the time to do this and you want someone to have a full-time focus on payment recovery and customer engagement, we can help. At Gravy we do this day in and day out. We have spent the last 6 years creating proven systems that get failed payments back online and adds money to your bottom line. Book a free discovery call to see how we can help your business.