Kriti PatelTLDR:
- Stripe, a leading fintech company, has released a new churn management guide and features for its billing products suite.
- The churn management guide helps users understand and reduce churn, while the new features aid in revenue recovery.
- Reducing churn is crucial as customer acquisition costs rise and retaining existing customers becomes more cost-effective than acquiring new ones.
- Stripe’s upgrades and churn management guide make it more efficient for subscription services to recover lost revenue.
Stripe, the fintech giant known for its services for subscription-based businesses, has launched a churn management guide as part of its suite of billing products and services. The guide, aimed at reducing churn and increasing customer lifetime value, comes with new and improved features in Stripe Billing to enhance user understanding of churn and recover lost revenue. Stripe’s illustrious clientele includes Amazon, Google, Deliveroo, Asos, Zoom, and Shopify.
Churn, the involuntary cancellation of subscriptions, is a significant problem for subscription-based services. According to recent research by Stripe, 25% of all churn is involuntary, and recovered subscribers typically stay subscribed for another seven months on average. Reducing churn is crucial because the cost of acquiring new customers has risen by 60% in the last five years. In comparison, retaining existing customers is up to seven times more cost-effective. Stripe’s automated payments recovery features have already helped recover an additional $3.85 billion in lost revenue for its customers in 2022. The new churn management guide and upgrades aim to make revenue recovery more efficient for subscription services.
In addition to the churn management guide, Stripe is offering new revenue recovery features. These include a revenue recovery interface, options for recovery automation, and revenue recovery analytics. By leveraging machine learning, Stripe can identify phishing content on invoice emails of fraud-flagged merchants, reducing the impact of fraud on businesses and helping them focus on the needs that matter, including reducing churn.
Overall, Stripe’s new churn management guide and features for its billing products suite provide valuable tools for subscription services to understand and reduce churn, as well as recover lost revenue. With the rising costs of customer acquisition, retaining existing customers has become a cost-effective strategy for businesses. Stripe’s efforts to mitigate churn and facilitate revenue recovery contribute to the success of subscription-based businesses.
