Involuntary churn happens when the use of products or services provided by the merchant is discontinued for reasons independent of the customer. Every year, cloud software and online services companies lose millions of dollars in potential recurring revenue to customer churn. While reducing churn is the main goal for any subscription-based business, most retention strategies neglect one of the biggest and most recoverable causes of lost recurring revenue: failed payment authorizations.
With more than 1/6 card transactions failing for one reason or another, implementing strategies to reduce and/or recover declined authorizations is one of the best investments any recurring-revenue based business can make. Just as there are many reasons for payments to fail, there are numerous ways to prevent and recover them. The most successful retention strategies use many of these tactics simultaneously, and advanced tracking and analytical tools to monitor and optimize results.
Involuntary Churn Prevention Tools
You can uplift your revenues by up to 20% by using 2Checkout's Involuntary Churn Prevention tools. These tools are available out-of-the-box, but also part of our Advanced Revenue Recovery Tools add-on:
- Multi-currency Management – Improve localization and limit cart abandonment with the multi-currency management which offers access to local billing currencies and can help you increase authorization rates by up to 25%.
- Intelligent Payment Routing – Intelligent Payment Routing enables you to match or route card transactions to the payment gateways best equipped to handle them and retry authorizations using a failover or back-up gateway.
- Dynamic 3D Secure – Helps you achieve a positive impact on authorization in specific countries and mitigate fraud risks.
- Account Updater Service – The Account Updater Service enables 2Checkout to automatically update subscription customer card data when cardholder information changes or goes out of date, thus allowing you to increase retention by up to 40%.
- Expired Cards Updater – Identify and automatically update expired cards and increase authorization rates by up to 4%.
- Advanced Retry Logic – When authorization fails due to a soft decline, you can retry a renewal 6 additional times, before and after the subscription expiration, and recover up to 20% of failed transactions.
- Hard Decline Notifications – When authorization fails due to a hard decline, notify the subscriber via email including an easy way to update their payment method and increase renewal rates by up to 1%.
- Dispute Prevention Service – Automatically refund disputes which are likely to become lost chargebacks and reduce chargeback fees.
- Advanced Authorization Report – Monitor the impact of advanced revenue recovery tools and employ the insight to adjust and optimize your tactics to reduce churn.