Ep 98: Stop the Hidden Revenue Leak in your Membership

Jan 2

Stop the Hidden Revenue Leak in your Membership

In the fast-paced world of business, it's easy to overlook the low-hanging fruit that can help increase your monthly recurring revenue without the need for acquiring new customers. In this podcast episode, I explain a simple yet often neglected strategy: failed payment recovery. By addressing failed payments, you can unlock a significant opportunity to recover lost revenue. Let's explore how to identify, communicate, and optimize your failed payment recovery process. While listening to the full episode, pay close attention to these key takeaways.

Assess the Impact:

Start by analyzing the percentage of cancellations attributed to failed payments versus voluntary cancellations. Understanding the financial impact of failed payments on your monthly recurring revenue is crucial in determining the significance of this issue for your business.

Communication is Key:

Develop a clear communication plan to reach out to customers whose payments have failed. Consider the timeline, message, call to action, and channels of communication. Remember, email alone may not be sufficient, so explore alternative channels like direct messages, text messages, or even physical mail.

Establish Standard Operating Procedures (SOP):

Create an SOP that outlines the entire failed payment recovery process. This document should include tagging systems, messaging templates, and guidelines for your team to follow. Having a standardized approach ensures consistency and efficiency.

Test and Measure:

Implement your failed payment recovery process and continuously measure its effectiveness. Track metrics such as recovery rates and the timeline for successful recoveries. Use this data to optimize your approach and set goals for improvement.

Don't Forget Baseline Metrics:

Before implementing any changes, establish baseline metrics to gauge the effectiveness of your new process. Without a baseline, it's challenging to determine the impact of your efforts accurately.

Increase your Recurring Revenue

Failed payment recovery is a powerful tool to reclaim lost revenue in your recurring revenue for membership business. By identifying, communicating, and optimizing your failed payment recovery process, you can significantly improve your monthly recurring revenue. Don't let this low-hanging fruit go to waste.

For those using my metrics template, you already have a dedicated space to track failed payments. If you don't have access to it, don't worry. You can visit memberltv.com to get a free lifetime value and retention calculator. This will also provide you with an opportunity to access my metrics training, and dashboard, which can help you optimize your failed payment recovery process. Don't miss out on this valuable resource to maximize your revenue potential. To gain more insights and guidance, be sure to listen to the full podcast episode.

The Easy Button

Inside of RETAIN, my group consulting program, I provide proven strategies and templates for recovering failed payments. The system provided gets you 80% of the way there without the guesswork. Learn more about RETAIN.