Written by: Aditya Nayak
Keeping track of customer attrition is by far the best virtue for any company looking at deriving ROI on their efforts. To achieve this goal, companies must be aware of why customers are leaving, how much it will cost to replace them and also the possibility of retaining customers with minimal retargeting.
While companies take extra efforts in other stages of the customer conversion cycle, they sometimes miss out on simple things such as efficient billing software, which leads to high customer attrition. After all, it’s the end of the consumer cycle, and any glitch or less than preferable feature takes the entire impression down.
In this blog, we look at missing billing software features that present a less favourable outcome and leads to customers sliding towards the customer attrition column.
Read our blog on ‘Customer Retention – Unique Strategies Your Business Should Use – Muvi‘ for more insights!
Billing and Invoicing Mistakes
One of the top reasons why a customer leaves or never returns are billing/invoicing errors. Payment flexibility, ease of usage and accuracy when it comes to billing is the least expected of all. Customers engage with companies on the goodwill of trust. If at this stage, a customer is billed wrongly or charged for goods and services they never ordered, it will upset the user causing inconvenience and they may end up losing faith in the brand.
Robust automated billing software can help you avoid this downturn, and have your back in building trust. An automated billing system makes invoicing, payments and revenue collection an error-free task that is almost impossible to achieve manually.
Local Language and Currency Adaption
With platforms going global, it is only acceptable to have inbuilt currency converters and local language adapters to serve the global community that your product is facing. It is highly illogical to presume the standard language is compatible with any and all target audiences. Features like this create a feeling of inclusion and having thought about the customer mindset. If your billing software is not capable of such a feature, it’s time to opt for software that does this, and much more.
Online businesses that work on a subscription model, often rely on their billing software for tracking and communicating to customers when a renewal of their subscription is due. If the billing software misses reminders and doesn’t bill the customers on time, it leads to huge revenue losses for the company.
The loss is not just limited to revenue losses from non-renewal of subscription, but also when the software fails to inform the company that a certain subscription has elapsed but continues to provide services. In this instance, the loss incurred is irreversible.
Lack of Timely – Proactive Support
Often at times when customers flag companies about wrong billing or regarding termination of services, a non-reactive support team can give the customer an opinion that the company is not interested in servicing them. This leads to a loss in brand value and makes the customer disingenuous in taking any services from the company in the future. Even when the retention team does take efforts in reaching out to the customer, it falls on deaf ears since there was a lack of timely and proactive intervention.
Such displeased customers can further hurt the company by voicing out their woes in open forums and social media. This may influence others to avoid the brand in the first place – just how online reviews work in making or breaking a brand.
The solution is to ensure that the customer support team is held accountable and performs proactive listening, addressing and providing timely solutions to customers or an efficient billing software that can help notify on time and avoid such embarrassments.
Hence it becomes vital for companies to not only keep their products updated with the most updated software but also to have teams and strategies in place for churn reduction.
Lack of Payment Flexibility
Catering to such diverse avenues of payment also means that the billing software has to be agile and dynamic when it comes to processing these payments. Billing Softwares with minimal payment options lack processing prowess and lead to payment failures and subsequently adding to customer attrition.
Customers are constantly demanding flexibility in terms of modes of payment, be it making payments by credit card, bank transfers, cheque payments, cashless wallets, via prepaid cards etc. Having to cater to such demand, there may be times where regular payment methods fail. It can be caused by expired credit cards, wrong credentials, maxing out the expenditure limit or even wrong billing information. Failure in any of the transaction methods and lack of the billing software ability to counteract such situations can also lead to customer churns.
Such churns can easily be avoided by implementing automated billing software systems that have dunning management features. A software where all transaction cycle details starting from transaction initiation to completion is communicated to the customer and the company simultaneously. The software should also be equipped to notify customers with dunning messages or send emails about payment failure and request them to update their payment information.
Learn more about payment gateways by reading our blog on ‘Understanding Payment Gateway Architecture – Muvi‘.
Breaking the customer attrition cycle with Muvi Billing
Now that we have discussed at length what leads to customer attrition, tackling the problem is even easier. By efficiently managing renewals, catering to diverse payment methods and keeping a proactive resolution to customer billing queries, you can easily reap rewards such as increased revenue, loyal customers and a sustainable business model.
Tackle all these challenges individually or opt for an industry-leading enterprise-grade automated billing software Muvi Billing, to do all the hard work for you.
Muvi Billing has been designed keeping in mind all billing needs of business, from small scale product companies to large scale service enterprises. The software is easy to integrate with any website or application and lets you achieve optimal operational efficiency with smooth billing experiences. It is a versatile payment platform that supports over 40+ payment gateways. With flexible billing, multi-language and multi-currency support and carrier-grade security features, Muvi Billing outperform its peers, making it an ideal partner for resolving all your billing woes.
Take our 14-day free trial and get rid of all your billing hassles, now!