Improved Billing Management
In today's video, I'm going to share a technique that you can use in multiple applications if you're an Infusionsoft user on How To Reduce Membership Site Churn With Improved Billing Management.
In this example, it's really, in, say a support example, for say something like a membership site where it's critical that your support team communicates effectively with members during the process.
I work with a lot of clients who've got huge membership sites and we've implemented these strategies and we've seen our churn rate really reduce, i.e. the number of people we lose that don't renew on a monthly or an annual basis.
Firstly, I'm going to show you the traditional route, and then I'm going to show you what I consider you should be looking at to do if you're running a membership site or anything where we've got reoccurring billing scenarios in place.
#1 – Traditional Customer Support Scenario
The traditional route is this one, is basically we have, and let's use the example in billing failures, for example.
If you've got a subscription site, and at the end of the month, the client billing card fails for whatever reason.
Usually, and so many people don't even have this in place, so this is the bare bones of it. So if we get fail, then it would trigger a tag or an action to send an email.
A bit later we might send email two. Then a little later, email three…
Then, in that scenario, if they renew, then they're pulled out here, they're renewed.
At any point in that sequence, if they renewed, then they would be pulled out of the sequence.
Now the big stumbling block with this is that basically you may be lucky that you get 25% email open rate. What happens to the other 75%?
This is where you leaving a lot of money on the table and you're not serving your clients in the best way possible.
#2 – Improved Billing Management
Now we've got scenario two, which is hybrid. So with scenario two, we will have the same flow.
We'll have three emails that go out. But we'll add to that an SMS.
So we'll have SMS one. And then have a timer maybe. SMS two.
If you've got people who've bought from you, you will have a phone number if you're using Infusionsoft.
Now you can ask them to put their mobile number when they buy, to have that.
And again, really important to have this as a way of communication.
Want 98% Open Rates?
Now, the big advantage of SMS over this, so we'll go up here if they renew, is that 98%, I think there's a stat, will look at their text messages within 15 minutes.
We're hitting them on two different marketing channels. This is definitely the bare bones you need to have. I would definitely have this layer in.
#3 – 5 Star Customer Support
Here's how to Provide 5 Star Customer Support. And then, depending on what sort of site you've got and the resources you've got available, then I would also add in a call. We don't want to bombard people. It might be that, and I'll draw this out in a second, we have an email going out, and then a little bit later an SMS message.
You're not going to get a hundred per cent contact rates, but at least for those people you pick up and have a dialogue conversation, you're going to get an answer one way or another to sort their problems out. And if you're speaking to them on the phone, then you've got an ideal opportunity to sway them, to convince them that cancelling or to renew their credit cards, whatever it might be.
So the ideal scenario…
This is our ideal scenario. So we would have email, and then we'll have a timer, and then maybe SMS one. Then we'll have another timer. Email two. So that's one, two. And then we'll have another timer. If they haven't responded then, then we might have the call. Call one. Then we'll have another timer. Email three. Three. Then we might have another SMS two. Two. And then another timer. And then over here, we might have call two.
So you might say, “This is all very well, but what sort of results have we found from this?” Well, in two membership sites where we've employed this strategy, I'll share the exact results, we were getting about before I started dealing with them, they were getting about a 22% churn, which is quite a high churn rate for a membership site.
When we installed scenario one, the churn rate went down to 14%. Still very high. That's not just due to the problems of the billing automation. It was the content.
We helped with the content. I'll share their examples once we've done a couple of other things with this. When we put the SMS in, it went down to 9%. And when we got to here, putting the calls in, it went to 7%. And that was based on the existing content.
Now, I think they're quite high churn rates. And I told the client. And we did things in the membership site to change the content.
An additional $100,000 to $125,000 of income retained
The churn rate, initially, after we put this rate in, went to 11%, 7%, 4%. So they reckon this one strategy will add about 100 to 125k per annum profit alone to their business.
Got a similar client, we did this too. They were getting 13%. Then by putting the SMS in, it went to 9%. And then when we'd put the calls in, it went to 6%. So again, they had a much smaller membership site and they reckoned it was probably worth 20 to 30k per annum to them using the Improved Billing Management campaign.
So again, I hope you're getting the gist of this. If you're operating, and one of the biggest things I tell all my clients is you shouldn't be using what I call one-dimensional marketing. You should be using other channels to market to them. And in this case, we're hitting them with email, we're hitting them with SMS, and then we're hitting them with calls. So this is the bare bones. This is the Mercedes. And then this is the Rolls-Royce of follow-ups. And these can be used in lots of different scenarios with clients. Could be follow-ups, onboarding, anything like that, to make sure that you are communicating and people are actually getting your messages, to be truthful.
How To Provide 5 Star Customer Support
So obviously, you can do this yourself. If you need any help doing that, please reach out to us. We'd be more than happy to show you what to do to implement these strategies in your business. People say, “What is the tool of preference for this?” Now, undoubtedly, I've got to say that the tool we use to do levels two and three, the SMS and the call, is basically Fix Your Funnel. Ryan, who's a personal friend of mine, and his team are absolutely amazing. I'd say 85% of my clients use Fix Your Funnel. And it is an absolutely brilliant app. I'm not going to try and sell you the benefits of it. I think you should go to the website. Put a link where you can go and have a look yourself at what he does. But if you're considering implementing this, that is one of the solutions I would recommend.
An Extra Tip…
Now, just to give you a little bit of a bonus here… grab another… four here, we're also using ringless voicemail.
Now that is basically, if you've never heard of ringless voicemail or direct voicemail, is basically we record a prerecorded message, triggered in a campaign, and it would go to a mobile device. We can pick whether it's mobile or an online device. And rather than the phone ringing, which traditional voicemail does, it goes straight to voicemail. So it will leave a message.
And the massive benefit of that is perception. With traditional voicemail, voice broadcasting should I say, is that if you send a voice broadcast and someone answers it while it's going through, it sounds very automated. And we're not here trying to kid anyone or trick people. We're just, the perception of what we do. So for a ringless voice broadcast, it would go straight to their voicemail, leave a message. The client would look, playback the message. And then you might say, “Hey, it's Damian from DamianQualter.com. Just want to reach out with you. We were trying to bill your card and missed your call. I'll follow up with you tomorrow.” Something like that.
This Can Be Fully Automated
These can actually bring these rates even further down, and this can all be automated as well. The only bit of the improved Billing Management which is the manual scenario is where you place a call. And that depends on whether you have a team in place to follow up. If you haven't, then I would look maybe at the ringless voice broadcast. Then it might be where you put that in instead of an actual call.
So I hope you've found that useful. Again, if you need any help with any of this stuff including setting up in Infusionsoft the Improved Billing Management campaign, just reach out to me.
I'm delighted to talk to you and help you implement this Improved Billing Management in your own Infusionsoft campaigns.
Click the link below to watch over my shoulder as I set all this up in Infusionsoft.