Quarterly Learnings Report: Customer stories and lessons learned, delivered quarterly
Q2 2021: What impacts recovery rate (besides your dunning approach)?
Recovery rate is a key retention metric.
Increasing your recovery rate shows that you are growing customer loyalty, maximizing industry fit, and making sure customers don't churn involuntarily.
We recently published a report on recovery rates looking at all types of companies using Churn Buster. You can see there are a wide range of outcomes:
As expected, results vary dramatically.
But here's what surprised us: even among companies running fundamentally similar campaigns, results still vary dramatically. In fact, the top-performing account recovers 95% of failed payments just by using all the basic features of their Churn Buster account—nothing fancy about their approach.
When seeking to make a big (20%+) impact on recovery rate, looking upstream from failed payments is the right focus. Churn Buster is the most complete solution to passive churn available—a benefit of using such a niche tool—so your backend process is already solid while tracking progress as a company.
That said, to prevent churn you'll also need to plug leaks by optimizing your failed payments flow. Targeting gap areas and tracking progress will lead to incremental gains that stack up, compounding over time.
Here are some examples of companies doing just that:
- A box subscription company’s active cancellation data showed that offering a free gift with next delivery saved customers from churning for at least several months. They added this win-back incentive to their “Last chance…” email to recover reluctant customers who were about to passively churn.
- A digital membership company had a higher-than-comfortable bounce rate, resulting in many customers not seeing the failed payments emails. Their team began monitoring bounces to correct easy mistakes as they come up and get better points of contact when possible.
- A B2C SaaS company felt unsettled by letting some high-value customers slip through the cracks. Adding a late-campaign escalation allowed their team to keep tabs on those with higher subscription values and find other ways to reach them when needed.
In addition to specific use case solutions, Churn Buster is constantly improving. With a dedicated team innovating best practices used by the largest subscription companies on the planet, your recovery rate can be pushed to its upper limit month after month.
Do you have a specific gap area you’re looking to fill? Email email@example.com and let us know how we can help.