If you have been in business for any amount of time then you know that there are two ends to every business. The front end, which is sales and marketing. And the back end, which is customer service and customer retention.
Every business focuses on the front end, and you should! You wouldn’t have a business if you didn’t do sales and marketing. It is absolutely key to sustaining business growth and growing revenue. But did you know that there is usually a big opportunity to increase your revenue on the back end of your business as well. Here’s how to do it:
Tell me if this sounds familiar. You have spent money to acquire your customers. You have run ads, you have done marketing, you have got them on sales call, you have made your first sale to them. Their first payment to you goes through, only to fail in month 2 and month 3 and month 4. You see the declined payments but you simply don’t have the time to track down each of these customers one by one every time this happens. We get it. Believe me, we’ve been there. So what do you do?
Automation Trumps Determination
It all starts with automation. You have to have a sequence set up to contact these customers as soon as their payment fails. I think we can all agree that automation can make this a lot easier on you and your team. There are lots of good dunning software programs that will help you do this. (Recurly, Stunning, Churn Busters) But most businesses get software like this to set up their automated sequence and then forget it. Problem solved right? Here’s what you need to know.
If you really want to close the back door of your business and recover this revenue that is walking out the door, then you need to have metrics to measure the effectiveness of your payment failure follow-up. How often do customers actually open the automated emails? How often do they actually convert? How much revenue are you actually saving? These metrics are absolutely key!
Of course if this was the front end of your business most everyone would know the important stats. Every marketer, and CEO knows that you need to measure who is opening your emails, how many click-throughs are happening, and what is the conversion rate. But if you don’t know what these statistics are, or how well this going on the back end of your business with payment failure, you are losing TONS of money!
The One Simple Strategy To Add Revenue Without More Customers: Visibility!
So here is the one strategy that will help you add revenue without adding any customers. GET VISIBILITY of your payment failure statistics. Know your numbers. There are four primary numbers that you need to be measuring.
This is essentially a reverse sales opportunity. And it is a great way to add to your bottom line.
Here’s The Problem
This sounds great. For a lot of you, your failed payment revenue is a 6-figure number! And while you see the opportunity to add revenue to your business, you probably will not do this. Why? Because you have bigger fish to fry. You have sales to be made, you have strategy to work on, you have to lead your team and your business day in and day out. We get that. And this why we started a company called Gravy.
We can do this for you. We will come along side your business, do an audit of your automated sequence, optimize your follow-up for maximum effectiveness, and then implement our manual follow-up process to work alongside your automation to give you a full-time focus on your payment recovery. When a credit card fails you will have a full time person, and a system of automation 100% focused on getting your customer back online and your payment back in before it becomes a real issue.
So take a look at your automated follow-up procedures and get visibility on your payment failure numbers. And while your in the process of doing that, if you would like to talk about how we can help. Click the link below.