Doing the work

We are losing customers to failed payments. How do I fix involuntary churn?

The short answer

This is the cheapest retention win available and almost nobody owns it. Involuntary churn is typically 20 to 40 percent of total churn and it is a billing problem, not a product one. Start before failure: warn customers about expiring cards and offer a backup payment method. On failure, distinguish soft declines (retry, with sensible spacing) from hard declines (stop retrying, ask for a new card). Make updating a card a two click self-serve action, not a support ticket. Write dunning emails that say what happened and are recognisably from you. Offer pause instead of cancel at the end of the sequence.

Go deeper, your way

4 hand-picked resources, 4 link-checked. Pick how you want to dig in.

📄 Article
✓ Link checked Free Intermediate

Why we picked it Involuntary churn is 20 to 40 percent of total churn for most subscription businesses and nobody owns it. This is the most concrete tactical list we found, organised by where in the payment lifecycle you intervene.

23 Ways to Reduce Involuntary Churn

From Chargebee by Zaid Assadi 15 min read

Open chargebee.com

The same ground, at another level

How expansion, upsell and churn reads from a different seat.

Terms in this answer

People also ask

What is net revenue retention and why does every investor keep asking me for it? NRR is what happens to the revenue from one group of customers over a year, with no new logos counted: start with what they paid, subtract what chu... Breaking into GTM 4 resources → What is the difference between gross retention and net retention, and which one should I watch? Gross retention counts only what you lost: churn and downgrades, capped at 100 percent. Net retention adds expansion on top, so it can go above 100... Breaking into GTM 4 resources → What does land and expand mean, and does it apply to my company? Land and expand means you deliberately sell a small first deal to one team, prove it works, and grow from there into more seats, more teams or more... Breaking into GTM 4 resources → How much churn is normal, and is mine bad? For software, annual churn above roughly 6 percent is the point where people start calling it high, and monthly churn benchmarks vary hugely by who... Breaking into GTM 4 resources → How do I spot which accounts are actually ready to expand? Look for accounts that are pressing against a limit and accounts that are spreading sideways. Hitting a usage ceiling, adding users faster than the... Doing the work 4 resources → How do I run an upsell conversation without sounding like I am shaking them down? Earn it first. If you cannot show the customer a result they got in the last quarter, you have not bought the right to ask for more money, and they... Doing the work 4 resources →

Also in Starting Up

The same ground, over in Grow & market, our Starting Up track.

Also in D2C

The same ground, over in Grow organically & retain, our D2C track.

eChai Partner Brands