Optimizing Customer Retention with AI-Driven Offers: A Step-by-Step Guide

In today’s competitive market, where customer retention is crucial for business success, every missed opportunity can be a significant setback. In the 2024 State of Subscriptions and Revenue Growth report, 86% of subscription leaders agree that customer retention is a higher or equal priority than acquisition.

Consider this: You’ve developed an excellent offer strategy to retain customers considering cancellation. However, delays in deploying the offer mean you miss the chance to retain valuable customers. Crafting a compelling message and implementing the offer can be time-consuming. This involves reviewing and optimizing copywriting and seeking recommendations on the best offer to retain a subscriber. By the time everything is ready, your customers may have already moved on, losing interest in your offerings.

Well, this need not be the case anymore! Launching Retention AI, driven by Chargebee’s state-of-the-art artificial intelligence. You can now create personalized offers that not only reduce cancellations but also strengthen customer loyalty. By tailoring offers to your subscribers’ unique needs, you can seamlessly boost retention rates and fuel business growth.

In this blog, we’ll talk about how you can leverage Retention AI effectively to set up offers in no time.

You’ll find the “New Offer with Retention AI” option on the top right corner of the screen within the Offers section under the Experience section. 

Delve into details

Start by configuring fundamental details about your company, industry, and business model. This foundational step ensures that your offers resonate with your business’s tone and meet your customers’ expectations. Chargebee Retention achieves this by referencing relevant online content about the company to speak in their tone or voice. Additionally, we leverage our industry best practices to generate the highest-performing offer possible while staying true to the company’s unique tone and style.

Insights into your audience

Understanding your audience is crucial for crafting personalized offers that resonate with them. Add details of the customer cohort that you are targeting. Here are some examples:

1. Customers who are on a specific plan. 
2. Customers from particular regions or industries.
3. Customers whose subscriptions are set to renew within the next 30 days.
4. Customers who have been loyal to us for two years.
5. Customers who haven’t used the product in the last 30 days.
6. Customers who have recently encountered issues with your product or service.
7. Customers who have paused their subscriptions could benefit from a limited-time discount or promotion to encourage reactivation.

Explore offer categories

Chargebee Retention offers a diverse range of offer categories, including discounts, subscription pauses, plan extensions,  and the ability to combine multiple actions into a single offer. By understanding your customer cohorts, you can select the most appropriate offer category. 

For instance, if customers haven’t accessed your product in over 30 days, consider offering them a subscription pause or extension. For those facing recent product issues, providing discounts can be a compelling way to re-engage and retain them. After selecting the offer category, proceed by entering the details of the offer intended for customers.

Learn more about offer categories here

Craft your tone

Select the communication tone that aligns with your brand style and communication guidelines. You have the option to convey confidence and friendliness or even add a touch of humor. Additionally, you have the flexibility to select up to two options. This allows you to personalize the copy to resonate best with your customers.

Connect with customers in their preferred language

Speak your customer’s preferred language. Chargebee Retention supports nine languages, including English, Spanish, French, German, and Polish. Choose the language that resonates best with each specific customer cohort, ensuring your message is clear and relatable, regardless of their location.

Enhance your offer effectively with additional details 

You can also provide additional information to ensure the copy aligns better with your strategy. For instance, you may include details such as: 

– It’s a one-time discount applicable in the next billing cycle

– It’s a limited-time offer

– Apply  the plan change immediately, along with a one-time discount

– Emphasize the advantages of the new performance plan in boosting subscriber growth.

– Specify that users have the freedom to unpause at any time.

After providing all these details, you’ve given Retention AI the context to generate offer copies instantly. You can refine or generate more copies until you have the perfect match for your campaign. Once your offer copy is finalized, it’s time to set the final settings before launching the offers.

Chargebee Retention offers an intuitive editor that allows you to customize every aspect of the offer visible to your customers, from layout and design to post-acceptance actions. You can manage everything from your Chargebee dashboard, including the placement of offers. For instance, if you’re running a feedback survey to understand why customers are canceling, you can use their responses to offer discounts or extensions.   

So why wait? Dive into Chargebee Retention, explore the latest Offer AI feature, and let us know how quickly you can create and deploy your offers. Not using Chargebee yet?

Shift gears into the subscription billing fast lane and get a demo today.