When a customer’s service is about to run out of time or their subscription is about to end, what a company usually likes to do is send out a renewal request letter to the customer. This is an effective tactic at keeping a customer subscribed to a company and to keep them paying for something. Sometimes only one letter is sent out, but sometimes a lot of letters are sent out over the course of time when the subscription is nearing an end.
For the sake of demonstration, we’ll demonstrate a four part letter which has a very specific set of events that should be followed in order to best get customers to keep their subscription to a service or product going. Now, it depends on the company but the very first renewal request letter is usually sent out anywhere from one month to six months ahead of the subscription end date. Sometimes, a company will simply send out a reminder that the subscription is about to end, and sometimes they’ll offer a reward to keep it going.
Now, whether or not you have an early bird special will really depend on when you send the second letter, but the best time to send the second letter is one month after the initial and first letter. This also serves as a friendly minder incase the customer forgets that their subscription is about to end soon. Usually the second letter doesn’t often include benefits, but this will vary from company to company.
Now, when the subscription reaches a deadly age limit such as one month before expiring, this is usually when a company decides to send their third letter out. This serves as a reminder that the customer is entering the last thirty days of their service and allows them to re-up. It should serve as more of a warning than an opportunity and if they enjoy your service, they’ll more than likely take note.
The fourth and final letter will be the one you send when a product or service expires. This is basically an agreement termination notice. This will be the last chance you have to continue keeping the business of a customer but by this point, the customer has almost made their choice so you don’t want to be too pushy. The fourth letter should include some sales content but don’t be too demanding or pushy or the customer will be annoyed. A renewal request letter by this point should be more of a plea and a description of benefits for the reader.
If there’s a discount for keeping the subscription alive, announce it.
Invite the customer to continue being a customer and remind them what they’re currently subscribing to.
Let the customer know why your service or product that’s being provided is superior to others.
Grab the customer’s attention with an eye catching introduction statement.
What is the benefit of your product or service that you provide compared to other providers?
Request that the customer renew their subscription and stay with you.
Put a very eye-catching and bold expiration notice, stating that it’s the last month.
Regret to in inform them that you noticed they haven’t yet renewed their subscription or contract.
State your concern and ask them why they haven’t renewed their contract yet and if they plan on letting the contract go, why they want to do that.
Make sure the customer knows that this will be the end of the line and it will be the final letter sent to renew their contract or subscription.
Offer one last courteous offer to renew the contract now that it has expired.
If applicable to your company policy, explain that if they ignore this opportunity and decide to come back, the price for the service or product will be higher.
Explain to the customer that no further letters will be sent asking to renew their contract.
Dear Mrs. Jensen,
Did you know that if you renew your contract right now, you’ll save $40? You are currently subscribed to Make Money Initiative the online magazine but your subscription will sadly be ending shortly this year. We’d like you to know of an exclusive deal, if you act today, you could save up to $40 just for reactivating your contract for two more years!
This offer is only good and valid for this letter only and it will not be offered ever again! We value your service but a deal this good can’t stick around forever. If you want to take advantage of this deal, you need to send us your renewal right away. The Make Money Initiative offers invaluable advice on stocks, making money from home, running a business or starting a business from the ground up which you’ve shown a lot of interest in. We’re offering a one-time deal where you can get it cheaper than new customers, but only if you act now!
Harriet, Vice President of Make Money Initiative
Dear Mrs. Jensen,
It’s almost too late to act! Did you know that over 90% of people who try to start a home based business online will fail? However, did you know that the failure rate goes down by an incredible 50% when people subscribe to our magazine? We get proven results and the insight we give people is simply invaluable. We also take interviews from the leading experts around the globe for making money online.
We offer you valuable insight into their brains, how they work, how they do business and how you can replicate what they do. Several reviews call us the most innovative magazine series out there and the most insightful. We’re so confident that you’re going to leave our continued service that we’re going to offer you a discount of $35 if you lock in your contract for just one more year!
Dear Mrs. Jensen,
I was sad to hear that our accounting manager was updating the spreadsheet of currently active accounts and while your name was on it, you weren’t on the renewal list. I was sad to see that as you’re one of the very few people not on that list! We’ve sent you several letters up to this point on the valuable insight that you’d be missing out on but you haven’t yet re-subscribed with your contract.
Whether the letters aren’t being delivered or what’s going on, your subscription will end on the very next issue which is sad to see. If you would like to continue to keep receiving a subscription from the Make Money Initiative, you should fill out the renewal form and send it to us today! We live in a world with tough and complex markets; don’t be left out of the loop or given bad advice by the so-called “gurus” out there on the internet.
We’d like to make sure you get your renewal on time, so make sure that you send us that renewal form as soon as possible to continue receiving our magazine which has helped thousands of people make money!
Letter #4 (Final Letter)
Dear Mrs. Jensen,
I regret to inform you that your subscription has now been expired. However, I’m feeling generous and I would like to offer you a one-time deal. If you act today, you can lock in your renewal to our magazine at a tremendously low rate! For the first year, we’ll offer you 30% off the original price that a new subscriber would pay.
While by company policy I am supposed to charge you regular price, you have been such a great customer to us over the years and such a loyal customer that I wanted to offer you this one time deal to make sure you knew I meant business. I want to see you succeed and our magazine allows people to do just that. This will be the last letter sent to you and I am deeply sorry to see your name not on the renewal list. Complete the renewal form attached with this letter and continue your subscription today!
Make Money Initiative Magazines!