Outdated billing contacts could kill your SaaS business
People change jobs, it’s simple a fact of business. And when someone leaves their position, their email address inevitably becomes inactive. So what happens when your point of contact for billing changes jobs?
Behind the scenes, your emails aren't getting in the inbox, meaning any future payment issues will be left unresolved. And eventually, the account will be cancelled and access will be revoked (despite your customer having no intention to cancel). Not only will you have inevitable churn on the way, you may also end up with a very unhappy user. Imagine being locked out of a tool that your company relies on, simply because nobody in your organization knew there was a billing issue. You'd likely be pretty upset with the platform that failed to inform you of an impending lockout.
So how do you deal with this overlooked (albeit dangerous) risk?
Sometimes, when someone is leaving a company, they are asked to go through all their accounts and ensure the contact information gets updated. If this does happen, you're in luck. But, said job-changer probably isn’t super stoked to spend 20+ minutes looking for a way to update their contact information. So don’t test their patience. Make it as easy as possible for them to update their billing contact information. Prevent future churn simply by making a billing contact update seamless for your customers.
For example, here's how easy we’ve made it to update your billing information within the Churn Buster dashboard. No searching for advanced account options or a support form to fill out. Just point, click, update.
Note: it wasn’t always this easy, and we can confidently say this has had a HUGE impact on our business. Customers write in regularly with updated points of contact, and as a result, payment issues get resolved quickly. Amazing what a difference it makes, going to the correct billing contact instead of A) emailing a defunct address, or B) getting passed around from one contact to another!
Create Nets to Catch Non-Updaters
Let's say Jan at Company X (your billing point of contact) leaves her job, and fails to update any account holder information within the apps she manages. Do you hear that inevitable cancellation slowly churning your way? To stop that churn in its tracks, you need to know whether or not important emails are being delivered. And that is especially true for emails pertaining to billing and subscription status. If high value accounts are being cancelled simply because you can't reach your customer—and you have no knowledge of it—you're going to upset customers and rack up passive churn. It’s inevitable. And also preventable.
How Churn Buster Helps:
Visibility into background performance is so key. Most simple dunning setups tend to fall short on these insights, especially when it comes to email deliverability. And poor deliverability can truly wreak havoc on your recovery. Simply put: How can a customer update payment information if they never received a notice?
Recently, Churn Buster added new Slack alerts that give your team real-time updates on bounced emails. These allow your support team to instantly see high-value deliverability issues and step in to make the save.
Now, you can also filter your campaigns within the Churn Buster app to see which campaigns are at-risk due to deliverability issues. This is a great place to periodically poke into and ensure you don't have any important emails being delivered to a wrong (or non existent) email address. You’ll find this on your Campaigns pages:
Here, you can filter to show only campaigns with delivery issues.
See a contact in there for a high value customer? Reach out via live chat, phone, or email another person in the company. Get that info updated and keep their subscription happy and the user satisfied. Boom. If you don't have visibility into email deliverability for dunning, how many accounts are falling through the cracks simply because emails aren't hitting the inbox? How much churn could you be racking up?
Don't overlook the finer points of passive churn. Churn can, and will, compound quickly and cause a real drain on your bottom line.