Blog / LearningWednesday, August 5, 2020

Technical Churn Prevention

Lasse Rønn

Technical Churn Prevention

Wouldn’t it be nice if you could have a glimpse into the future?


For example, wouldn’t it be nice if you could foresee missing payments before they were missing?


Unlike traditional transaction-based businesses, subscription businesses don’t have to start from zero every month, quarter or year. There is a nice steady baseline of predictable revenue simply because of the choice of business model.


In a subscription business you rely heavily on payment methods on file. Most end-customers don't want to pay their subscription in the middle of the night, hence merchant-initiated transactions are commonly used for subscriptions. 


Payment methods are automatically monitored for payment method health in Upodi. Should a credit card or another payment method go stale - expire, be blocked, revoked or similar - it is marked with this status and the system will automatically avoid any future transactions on this payment method. This ensures no additional costs associated with doing transactions on payment methods which are never going to be successful.

We keep track of these health states in Upodi, help you to avoid wasting time and money charging payment methods we already know won't work, and enables communication to the customer at the right time if the payment method should be changed. That alone is a golden opportunity to avoid “technical churn”.


Imagine you foresee a potential challenge with a payment method and you are able to proactively inform your customer about this to avoid any disruptions in their delivery?


These health states can trigger an email to the customer, if this has been enabled in the marketing section of Upodi, which informs the customer prior to a charge if the payment method will expire, is blocked or otherwise invalid for the future charge date.


Showing your customers that you care and can prevent disruptions in their delivery or service – is something most people value. It is, simply put, good service – and that is regardless of your choice of business model a great way to long lasting relationships with your customers. 


Author: Lasse 

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