It can be challenging to prevent service revenue loss as a startup or experienced company. With so many variables at play, sometimes there is a need for analysis, overhauling and assessment. From working on the customer experience to retention strategies, here are some suggestions.
Refunds and Merchant Providers
Some industries are seen as risky, meaning they have a high potential for things like chargebacks. As an example, tattoo deposit chargebacks could be seen as risky, and a customer with a complaint might request a refund through the payment processor of your business users.
This can result in more losses. However, you can reduce this by working with a payment processor for risky businesses, clear refund policies and offering alternatives.
Elevating Customer Experience
Delivering a high level of customer service builds trust and loyalty while reducing churn (the rate at which customers leave) as customers are satisfied. This can be easier for a startup than for an established business, as you can weave the CX into the fabric of the company.
Examples include intuitive onboarding, user-friendly interactions (website, calling, app), and multiple support channels for easier resolution, such as chatbots, quick phone calls and ticketing.
Prevent Service Revenue Loss via Data
Data analysis is often overlooked but can be transformative for any-sized business. For example, the NHS tackled fraud by using a data analytics tool and AI, which resulted in savings of over £100 million. Data analysis can streamline your business with simple implementation:
- Analyse customer data to highlight areas where customer engagement is dropping.
- Reduce recurring issues or dissatisfaction by monitoring customer support interactions.
- Quantify risk levels through the adoption of customer health scoring systems via CRM.
Increasing customer retention rates by even 5% has the potential to boost profits by 25% to 95%! Focusing on early indicators helps startups develop targeted solutions that help with customer engagement, resulting in converting potential losses into revenue that flows.
Proactive Retention Strategies
Reactive support for customers is the standard and can elevate your business above the competition. However, proactive strategies can work to prevent an issue from happening in the first place.
This includes anticipating customer needs, checking in with customers and providing informative content for user consumption, such as posts, videos and infographics. Tailored content can help deepen the relationship between valuable customers and a startup company.
Service Level Agreements
When delivering a service, customers need to know what they can expect. Confusion of any kind can lead to serious problems, including legal issues. Service level agreements (SLAs) can help manage customer expectations and establish what is required of your business.
Any SLA should clearly define, without ambiguity or misconception, the scope of the service your company is to deliver, and work as a legal safeguard to deliver consistently high quality.
Payment processors that will work with your business can help prevent service revenue loss for a startup. However, understanding your customers through data analysis is a transformative way to reduce losses when combined with legal devices such as service level agreements.
