Customer Retention with Auto-Charge and Auto-Reminder
HelixPay enables businesses to offer both auto-charge and auto-reminder payments to their customers. Options under auto-reminder include e-wallet options such as GCash, GrabPay, and PayMaya while auto-charge payments include Debit/Credit card options for Visa, MasterCard, and JCB cardholders.
The standard payment flow for those under auto-charge includes a 3-day notice that they would be charged a certain amount for their monthly subscription. For those subscriptions under auto-reminder, they would be informed 3 days before their payment due date to settle their balance. Both sets of customers would receive an email — either to confirm a successful payment or to automate a payment retry attempt for failed transactions. The automated handling for failed payments is designed to reduce involuntary churn from the subscriber base.
It is important for businesses offering subscriptions to track the retention rate of their subscribers month over month to know what percent of their subscribers continue with their subscription in the succeeding months. As auto-charge subscribers have been proven to have a significantly higher retention rate than their auto-reminder counterparts, HelixPay encourages businesses to add an additional discount to auto-charge orders. We recommend a discount of around 2–10% — big enough to attract the customer to opt for an auto-charge payment while still protecting your margins. Keep in mind that subscriptions help increase revenues over a long period of time and an additional discount for auto-charge customers helps achieve a bigger customer lifetime value.