What is Revenue Recovery?

Key takeaways:

• Revenue recovery is all about setting up automated processes that nudge customers to buy or come back.
• Track your accounts receivable, understand delinquent accounts, set up automated reminders to recover revenue.
• Use personalized communication to maximize the chances of getting back lost customers.

Revenue recovery is the process that businesses use to bring back money they should've earned but didn’t. It may include things like missed payments, abandoned carts, poor follow-up processes, and more.

Instead of letting that cash slip away, revenue recovery allows you to find ways to bring it back. If you’re losing money it doesn’t necessarily mean you’re doing something wrong, you may just be missing certain opportunities.

Causes of Revenue Loss

Even the most successful businesses can have some leads and missed chances. Here are some of the biggest causes for revenue loss.

Failed or Abandoned Transactions

When a customer fills their cart and then disappears, that’s considered a lost sale – also known as an abandoned cart or abandoned checkout. Maybe they had to run off all of a sudden, maybe their card didn’t go through, or they found the checkout process confusing.

These failed payments are common, but recoverable. Many times, simple automated email nudges or adjustments to the payment plans fix them. Remind them, offer a discount if you can, and you’ll have done more than enough.

Failed payments can also come from expired cards or miscommunication during the billing process. And if you’re not tracking it, you’re just losing revenue without even realizing it.

Customer Churn and Inactivity

When a customer leaves or stops buying, that’s called a churn. Sometimes they just forget. Other times, they find a better deal. In any case, it’s missed potential, and if you’re not trying to bring them back, they won’t come back by themselves.

Inactive customer accounts can also turn into delinquent accounts in subscription or other consistent billing business models. Customers owe you money, but no one from your team bothered to follow up. It’s usually best to automate these processes to avoid human error and tedious manual tracking.

Operational Inefficiencies and Gaps in the Funnel

From clunky billing processes to slow customer service replies, any amount of friction can cause a customer to bounce. If your team isn’t aligned or your tools don’t communicate with each other well, part of your revenue is bound to slip through the cracks.

And make sure you don’t forget to track accounts receivable, especially if you’re working in the B2B sector. That’s a quiet killer of your revenue stream. It’s recommended to automate it just to be safe.

Key Revenue Recovery Strategies

You may be losing money, so you should learn how to get it back. These strategies for revenue recovery will help you reclaim lost revenue – and the best part is that they’re not hard to set up.

Optimized Customer Follow-Up Campaigns

Sometimes a simple reminder does the trick. Create an automated sequence using an email service provider that sends reminders every time someone fills their cart and leaves, or bails at checkout.

You can also set up an automation to reach out when a customer’s payment plan is due. Use email, SMS, or even push notifications.

These small revenue recovery moves can bring in a lot over time, and in most email service providers you can find these automations already prepared with default and universal content. It shouldn’t take more than a few hours to set up.

For a more personalized experience, it’s recommended to adjust the content to fit your brand’s tone of voice and style.

Behavioral Retargeting and On-Site Personalization

Show your customer what they were looking at before. Use retargeting ads to keep your brand in their head. Add personalization to your site, so returning users see things they care about.

Additionally, behavioral tools help you gain valuable insights. You’ll know what makes people click and what sends them running.

Improved Checkout UX and Abandonment Tactics

Make it easy for people to buy. Clean up the checkout flow, remove unnecessary fields, and, if possible, add auto–fill functionality. You may be able to stop a lot of failed payments this way.

When people leave mid-checkout, hit them with recovery emails. For example, set them up after an hour of abandonment. As mentioned before, many revenue recovery tools can automate this entire process.

Lifecycle Marketing and Re-engagement Programs

Every customer has a lifecycle, from the first click to post-purchase. To make sure that you’re with them all the way, prepare an automated welcome sequence, a post-purchase flow to maintain retention, and a loyalty program to make them want to come back.

If you lost some contacts along the way, you can still win them back using re-engagement programs, which include win-back emails, birthday offers, reminders, surveys, and more.

In subscription-based business models, you can even connect lifecycle data to your accounts receivable and see what’s working.

Benefits of Proactive Revenue Recovery

The earlier you fix your leaks, the better your business will run. Here’s what you get out of good revenue recovery.

Increased Customer Lifetime Value (CLV)

Every time you keep a customer or fix a failed payment, you stretch their value. Instead of buying once, they come back again and again.

Fixing delinquent accounts helps, too. That’s money you’ve already earned, just sitting there and waiting.

More Accurate Revenue Forecasting

When you patch up gaps with revenue recovery strategies, you can see clearer patterns. You know when payments will come in, who needs reminders, and how well abandoned carts convert.

That means better planning and less surprise stress at the end of the month or a quarter. Plus, you’ll gain valuable insights into how people actually spend and why.

Higher Marketing ROI and Retention Rates

You’re already spending money to get people to visit your website. Why not squeeze every bit of value from that? If you run ads, make sure people who visit your website can opt-in for your newsletters. Not all of them will buy at once, but they might want to after a month.

Good revenue recovery makes sure that not all of your money vanishes if a customer doesn’t buy after visiting your site. By offering ways to stay connected to your brand, reactivating delinquent accounts, or cleaning up your billing processes, you’ll get better results from the same budget.

Frequently Asked Questions

What is revenue recovery for?

It helps businesses get back money that was lost or delayed. This includes failed payments, missed invoices, or delinquent accounts.

Why is revenue recovery important?

Without it, you’re just losing money and not fixing anything. Revenue recovery efforts boost your bottom line, keep customers around for longer, and help you plan better.

How do companies recover lost revenue?

They use tools and tactics like better follow-ups, fixing billing processes, automating reminders for payment plans, and organizing accounts receivable data.

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