What are Expired Credit Cards?
In the context of
email marketing, expired credit cards refer to payment cards that have surpassed their validity date and are no longer functional for transactions. When a customer’s credit card expires, any recurring payments or subscriptions linked to that card may fail, potentially disrupting the customer’s access to services or products.
Why are Expired Credit Cards Important in Email Marketing?
Expired credit cards are significant because they can directly impact your
revenue. If customers’ cards expire and they don't update their payment information, you may experience a drop in subscription renewals, leading to lost revenue. Moreover, having an effective strategy to handle expired cards is crucial for maintaining a seamless customer experience and avoiding
churn.
How Can You Identify Expired Credit Cards?
Most payment processing systems provide tools to track the expiry dates of credit cards. Additionally, you can set up automated alerts within your
CRM system to notify you when a customer's card is about to expire. This allows you to proactively reach out to the customer before their card expires.
Send Pre-Expiry Notifications
One effective strategy is to send a series of pre-expiry notifications. These emails should be sent at different intervals (e.g., one month, one week, and one day before the card's expiration date) to remind customers to update their payment information. These reminders can significantly reduce the number of failed transactions.
Automate the Process
Use automated email sequences to manage expired cards. Automation can help you send timely reminders without manual intervention, ensuring that no customer is overlooked. Integration with your
payment gateway can further streamline the process, allowing for real-time updates.
Offer Incentives
To encourage customers to update their payment information, consider offering
incentives such as discounts or exclusive access to premium features. This can not only prompt them to update their card details but also enhance customer loyalty.
A polite reminder of the upcoming card expiration
Instructions on how to update payment information
A direct link to the account or payment settings page
Contact information for customer support
Any incentives you are offering for updating their card promptly
Open rates: Determine how many recipients are opening your emails.
Click-through rates: Measure the number of customers clicking on the update link.
Conversion rates: Track how many recipients have successfully updated their payment information.
Churn rate: Assess whether your efforts are reducing the number of subscription cancellations.
Analyzing these metrics will help you refine your strategy and improve future campaigns.
Conclusion
Handling expired credit cards effectively is crucial for the success of your email marketing strategy. By implementing automated reminders, offering incentives, and creating clear and actionable email content, you can minimize the impact of expired credit cards on your revenue. Always keep an eye on key performance metrics to continuously improve your approach and ensure customer satisfaction.