It’s amazing to think that just about every business owner can explain to you how much money they have coming in their doors, but how many can tell you exactly how much they're losing failed recurring payments?
In America, customer churn costs businesses a whopping $136 billion per year. More than this, 34% of that amount comes from involuntary churn and failed payments. Let’s take a closer look at churn. More than 2 in 3 businesses lose 17% or more of their subscription profits due to churn. Why is this so?
How can businesses recoup their lost income due to involuntary churn? Improving customer retention is key. Customer loyalty is essential in customer service and propelling one’s business forward. It’s hard to imagine how businesses ignore their existing customer base - consider that 65% of a company's business comes from their existing customers. That said, customers aren’t afraid to leave after a bad interaction with a service provider. Today, 32% of people won’t continue doing business with a brand following from just one bad experience.
The most legendary companies understand the value of customer loyalty and continue to make money by tending to existing clients. Business leaders will be even more successful when reducing failed payments in their existing strategies in customer retention. Check out the following infographic below for more information:
Infographic by: gravysolutions