stripesFinancial infrastructure platform for companies, has released a new guide to vacation management for Help subscription businesses understand and mitigate voluntary and involuntary customer churn. The company also announced new revenue recovery capabilities, including a new revenue recovery interface, new recovery automation options, and new revenue recovery analytics.
“Reducing customer churn should be on every business leader’s solution list for 2024 – it’s cheaper than acquiring new customers and an effective way to maximize revenue and increase customer lifetime value.” We hope businesses use this guide and the Stripe’s new revenue recovery features are a useful foundation. »said a Stripe spokesperson.
Retaining existing customers is up to seven times more profitable
Customer churn is a much bigger problem than most people realize. Stripe’s research shows that 25% of cancellations are involuntary and that a restored monthly subscription typically lasts seven months. The study also shows that customer acquisition costs have increased by 60% in the last five years. It means that Retaining existing customers is up to seven times more profitable than acquiring new customers.
Stripe Billing, which helps more than 200,000 businesses worldwide accept and manage recurring payments, is continually improving its product range to better help customers manage churn. Some of the world’s best-known SaaS and subscription companies use Stripe Billing, including Atlassian, Slack, Doordash and The Atlantic.