Maintaining customer engagement and minimizing churn is paramount in the rapidly evolving digital subscription landscape, where services range from meal kits to online gaming.
While customer attrition is a natural part of any subscription-based business, a particularly insidious form of churn, known as involuntary or accidental churn, poses a unique challenge. Accidental churn occurs when customers unintentionally lose access to a service due to payment failures rather than out of a desire to cancel their subscription.
As the leader of a company that helps recapture revenue lost to accidental payment declines, I’ve seen how failed payments can lead to immediate revenue loss that can negatively affect transaction costs, customer value and overall business growth.
The Silent Impact Of Payment Failures
From my point of view, failed payments are not just a minor inconvenience but a substantial revenue leak demanding attention. False declines, as reported by Cardinal Commerce, result in over $400 billion in lost revenue. Despite efforts by companies to tackle underlying issues, the problem persists. I’ve witnessed businesses losing out on 10% to 20% of revenue for this one reason.
Smart Solutions With AI
Artificial intelligence and machine learning have revolutionized the payments industry, offering a way to sift through the noise and identify which payment issues can be fixed.
Continue reading the full article on Forbes.com
Originally posted on Forbes Business Council
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