It's 5x cheaper to retain an existing user than to acquire a new one. Rebill failures are an interesting example where most businesses do little, if anything.
A user's payment may fail due to a number of reasons, such as security lock, card expiration, or canceled card. So why are you uncomfortable asking a member to update their billing information? Because there is a false sense of security to "not rocking the boat". But what if there was an easy way to ask users? Users who are likely interested in keeping their subscription by updating their card on file and save them successfully?
Read on to see how Redfast Sequences provides a highly successful approach to this problem. We recovered over 35% of users across dozens of apps who would otherwise have churned.
This first step to successfully recovering from rebill failures is to be able to identify users who are more likely to update their information. Users with a steady or rising engagement pattern in the most recent visits are great candidates. This can be further refined to target users with increasing or steady engagement with premium features of your service. In both cases you are reaching users who don't intend to cancel, but will do so without intervention. The best part is you can do all of this with Redfast's built-in engagement trends.
Now that we know how to identify users that are more likely to be receptive to updating their payment information, the next step is communicate with them in a non-disruptive manner when they are on the site.
Using Redfast's tried and proven inline messaging templates, it's easy to speak 1-1 with the customer and provide 1-click remediation. A strategically placed text only phrase like "Jane, don't forget to update your card." can be incredibly successful.
You've successfully communicated to eligible subscribers and many will click to update their payment method. For the ones that do not update, Redfast Sequences provides a great way to follow up at a later point in time (during the same visit or another visit) to remind the user with a greater sense of urgency.
This method has proven, time and again, to be an extremely powerful tool in the fight against rebill failures. We've succeeded in helping our customers save users across multiple verticals like media & entertainment, subscription e-commerce, and e-learning. Here are some aggregated statistics for this particular solution.