Four Effective Ways to Say Goodbye to Involuntary Churn

• Jan 13, 2022


Customer churn. All companies experience it and dread it. A high churn rate can result in a high loss of revenue for your company.

The continued success and rise of subscription-based services have brought about a new age for the media, entertainment, and sports industries. With the dawn of the subscription boom, plenty of options are made available to consumers to pick what content they want to interact with.

But deciphering between involuntary and voluntary churn can make significant impacts to your bottom line. With voluntary churn, your customer has lost interest or switched to a different provider. But with involuntary churn, your customer did not step away willingly, a system error or miscommunication has hindered your ability to hold onto that subscriber. 

The question on everyone’s mind – What can be done about involuntary churn?

While churn is seen as inevitable, there are ways you can mitigate and control the involuntary churn cycle that is occurring in your organization. To help get you started, we have defined four effective ways to eliminate involuntary churn.

A Clear Path to Reducing Involuntary Churn

Involuntary churn can be painful and usually is caused by a simple system error or inattention to the customer. These techniques are some of the most effective and proactive ways to address involuntary churn with any system.

1. Anticipate Declined Payment with Customer Reminder Emails – When your customer switches banks or receives a new card, they may not exactly know what services rely on that account. By setting up an email system, you can remind your customers about expired forms of payment.

2. Adjust Retry Cycles to Match Bank Practices – To reduce fraud, issuing banks can decline transactions using either a soft or hard decline. Companies should view soft payment as soft declines – setting up retry cycles that allow the possibility that the decline will be resolved.

3. Flag Payments as Recurring – By marking charges as recurring, your company will establish trust and mitigate involuntary churn. This will show that your business anticipates a long-term relationship with the customer.

4. Implement a Payment Method Updater (PMU) – A PMU service automatically updates customer payment information when a new card is issued. This will eliminate a potential issue for both the service provider and the customer.

The main causes of involuntary churn are small system errors; however, they can be the difference between a successful revenue stream and lost money. The subscription boom has caused a large cause for concern with CLV and resolving involuntary churn can have a significant impact.

Want to implement more tools to have a complete solution to your involuntary churn? Download our free e-book: Turning the Page on Involuntary Churn.

About Evergent – 

Evergent brings Agility to Monetization and helps in enabling the CTV, OTT providers, and other SaaS-based e-Commerce businesses to acquire and retain new and existing customers by making the payments flawless, reliable, and highly secured. Evergent’s market-leading Integrated Revenue and Customer Management platform helps the world’s leading communication, media, and entertainment companies reduce time to market for products and services, simplify complex monetization models, and run back-office processes more efficiently. The company is headquartered in Sunnyvale, California, and has offices in San Diego and Los Angeles and internationally in Australia, Canada, India, Japan, and Singapore. 

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Jenny Overbaugh

Jenny Overbaugh has built her career marketing high-tech SAAS, hardware and professional services products in organizations spanning from B2B start-up environments to Fortune 50 companies. Her experience is rooted in strategy and execution of portfolio go-to-market plans including demand-generation, customer marketing and advocacy, events, webinars, and product marketing initiatives to drive growth around the world.