While companies often focus much of their energy on customer acquisition, they would cease to exist without good customer retention strategies. Keeping customers invested in your product or service improves your ROI and is more economical than acquiring new customers. In fact, it costs 5 to 25x less to keep a customer than get a new one. This allows you to focus energy and resources on providing the best product possible.
Powerful cloud-based billing platforms are highly effective customer retention tools. By enabling the flexibility customers desire and delivering clearer and more accurate invoices, these platforms help you deliver real value to your customers.
Recently, we touched upon the enhanced customer experience that cloud-based billing provides. But I’d like to demonstrate how modern billing translates into 3 solid customer retention benefits:
- Building lasting relationships
- Maximizing positive interactions
- Improving internal retention strategies
Continue reading to discover how you can leverage the right billing solution to help ensure your customers stay with your business.
1. Build Lasting Relationships
Billing is potentially the most delicate area of a business relationship—a customer must trust that they are being invoiced correctly and getting value for their dollars. If the billing process doesn’t go smoothly, that trust can be damaged. A strong billing solution, however, offers multiple lines of defense against potential hiccups. From flexible pricing, billing, and payment options to automation of recurring billing, a sophisticated billing solution lends itself to smooth transactions on an ongoing basis and can support any business model.
Cloud-based billing platforms can also improve customer relationships beyond billing; by integrating directly with Customer Relationship Management (CRM) resources in real-time, your support team can quickly identify and address billing issues as they occur, retaining customers who otherwise may have churned.
At the end of the day, your interactions with customers should make their lives easier. An agile billing platform can simplify your pricing options and easily automate customer invoicing and payment processing. That kind of customer experience drives loyalty.
2. Maximize Positive Interactions
As mentioned previously, billing is delicate and a vital touchpoint for customers. While a cloud-based billing platform can reduce snags in the customer experience, sometimes issues are unavoidable. Billing platforms respond well to such issues, offering both proactive and reactive strategies for resolution.
E-mails or notifications, for example, can be automated to notify customers of upcoming due dates, expiring credit cards, or failed payments. Such messages, when well constructed, inform customers and offer quick solutions.
These billing tools focus on reducing churn through customer notifications and dunning tactics surrounding payment. If a customer payment fails, for example, a sophisticated billing solution can be programmed to immediately recognize the event and reach out to the customer to offer quick resolution.
Cloud-based billing management can also be programmed to proactively and automatically update expiring credit cards. This is achieved by simply sending a notification about the upcoming due date, asking the customer for an updated payment method before expiration. Additionally, the notification can provide a link to a customer portal provided by the billing solution, where the information can easily be updated.
Customer portals are an exceptional benefit offered with superior billing solutions. With the integration of a dynamic platform, customers can be granted direct access to their transaction history, amounts due, and usage data.
A sophisticated customer portal also allows a user to easily make payments and upgrade their service without contacting customer support. These streamlined experiences keep customer satisfaction, and retention, high.
3. Enhanced Customer Insights for Better Decisions
The benefits of using a cloud-based billing platform extend beyond the customer-facing aspects of your business. Some of the strongest capabilities enhance internal processes.
By collecting usage data and generating reports, sophisticated billing solutions provide your business with insights into the customers’ experience.
The CRM team benefits from this clear look into each customer’s experience. Associated usage data allows them to dig into how customers use the products and offer enhanced packages to better suit the customer’s needs.
Developers, marketing, and sales benefit from tracking revenue changes after new product roll-outs, providing statistical data of a new product’s success. This allows you to continuously iterate the best product possible.
Sophisticated billing allows team members to focus their energy on other areas of improving business. These billing systems also help your company’s ability to stay ahead of the competition. Improved operations ensure your company will attract and retain loyal customers who want to keep using your product.
A Billing Solution that Performs
BillingPlatform can streamline your internal operations and improve communications with your customers, building the relationships necessary for retention. By creating customer loyalty through high performance and positive experiences, BillingPlatform promotes long term partnerships with your customer. With our data collection and reporting features, you can gain insights that enable every part of your company, from product development to customer success..
Selecting and implementing powerful automation processes to improve customer retention can be complex, so we created our Comprehensive Guide to Automated Billing Processes. This white paper helps break down the challenges companies face with billing and the benefits, strategies, and features BillingPlatform offers to help overcome them. You can download the guide and learn more by clicking here.