4. Revenue  >  Optimize Payment Form

Optimize payment form to reduce SaaS churn

The way how users pay for a premium plan is a critical variable that decides whether free trial users will convert or churn. Optimizing your payment methods for conversion will improve trail to paid conversions.

●● INTUITIVENESS

Soundcloud

Soundcloud let users pay through credit cards and PayPal, the two leading global payment forms.

Mailchimp

MailChimp offers 6 different payment forms including local ones to boost conversions.

Foodora

Foodora increased conversions significantly after adding mobile payments.

How to use the technique

  • Add payment forms consistent with your audience’s preferences. Do research and find what payment forms different personas prefer (if you don’t have this information already). This will help you offer the most relevant payment methods that users are familiar with. Conducting research will become easier if you'll read our free churn optimization framework
  • Use local payment forms. A credit card isn’t a global payment method. Users prefer local payment methods like Alipay in China, Visa in the US, SEPA in Germany, online banking in Indonesia, etc. Add as many payment methods as you can. The more you have, the better. Don’t give users a chance to churn due to unavailability of a payment method of their choice.
  • Add mobile payments. Not only that you should let users pay from their mobiles such as Apple Pay and Google Pay but the checkout process should be optimized for mobile.
  • Address security. One major reason why users will churn after the expiration of trial is that they're hesitant to share payment details. Make them feel secure. Add trust seals. Use HTPPS.
  • Add reward. It’s a known technique to persuade users to convert. Add a reward with payment details such as PDF, personalized help, a cheat sheet, etc.
  • Test conversions. Are there any payment forms that have a high conversion rate? Track everything related to payment forms for conversion optimization. This free guide will help you with actionable insights on how to do it.

Mistakes to avoid

  • Not addressing cart abandonment. Not tracking and addressing cart abandonment is a big mistake. Connect with abandoned users who left a payment page without conversion. Send emails to identify issues and to offer help.
  • Sticking with one payment form. Visa is a famous payment method but doesn’t make the mistake of only adding credit cards as a payment form. Add multiple methods to make payments easier.

Research evidence

TSYS 2016 US consumer payment study surveyed 1000 consumers to understand payment preferences. The study found that consumers prefer different payment forms depending on where they're shopping. However, credit card remains the most used and preferred payment method among others.

40%

When presented with the question: “When given a choice, what payment form do you prefer?”, 40 percent of participants selected credit


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Implement with our proven SaaS Churn Optimization Framework

Download a PDF with an exact process we use with our SaaS clients to research, define optimization opportunities and test.