Did you know that dynamic billing options can reduce churn and increase the likelihood of customers subscribing to your services?
According to a study by the Subscription Trade Association, companies that offer flexible billing dates experience a 30% decrease in churn compared to those that don't. Additionally, customers who can adjust their billing date are more likely to remain loyal to the company and continue their subscription. Also, customers are more inclined to sign up for a service when they have control over their billing frequency. For example, a recent survey revealed that 72% of customers are more likely to subscribe if they manage their billing and shipping schedules. Retailers can attract and retain more customers by providing flexibility in these areas.
Many subscription solutions are built for service companies with predetermined fixed billing frequencies, and customers choose from a pre-defined list. However, this approach can lead to customer frustration and high subscription churn rates in the retail industry. Customers may become frustrated by the manual work required to make changes to their subscriptions (think about how many times you had to pause, skip your shipment, or set a new delivery date). In that case, the value of the subscription may not justify the effort, and the customer ends up canceling the subscription, going back to purchase on an "as needed" basis.
Retailers should look for more flexible ways to offer billing and shipping options to their customers and leverage technology to recommend a frequency to customers based on their product usage. All this will translate into exceptional customer service and establish long-term customer relationships. By leveraging eCommerce data and analytics to understand customer behavior better and anticipate their needs, retailers can deliver products at the right time and in the right way. You can reduce churn rates and improve customer satisfaction and loyalty by prioritizing customer needs.
Don't settle for tools that are trying to fit a square peg into a round hole.
If you need assistance with incorporating a solution with dynamic auto-shipment, and billing options, reach out; happy to help.
