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Use Case: Retain Customer by Decreasing the Subscription Billing Interval

Assumptions and Preconditions

  • The subscription has the status Active.
  • The subscription contains only a single item.

Description

  1. On April 15th, a customer receives a reminder to manually renew an annual subscription for $15,000 by the June 1st renewal date. Due to a large increase in subscription seats purchased since last year, the customer does not currently have the budget to renew for another year. They contact the client’s account manager to see what can be done to solve this problem.
  2. The client’s account manager enters the customer’s email address into an intranet application that uses the Get Subscriptions for Customer API endpoint to retrieve details for the customer’s subscriptions.

  3. Realizing that changing the billing interval for the customer’s subscription would smooth out the cash flow impact of renewing, the client proposes changing the billing interval of the customer’s subscription from annually to monthly. If the customer agrees, then they would owe $1,800 on June 1st instead of $15,000.

  4. The customer agrees to the proposal and consents to the changes to their subscription. The account manager accesses an internal application that uses the Update Subscription Item API endpoint to change the subscription from one with an annual billing interval to one with a monthly billing interval.

  5. On June 1st, the cleverbridge platform automatically bills the customer for the $1,800 monthly annual renewal at the new subscription per-seat price and quantity.

Usage Notes

Changing the billing interval of a customer’s subscription is achieved by setting up two products in the Commerce Assistant, one for each of the two billing intervals. Usually, these products are functionally identical to each other, but are not required to be.

Options

Although not utilized in this use case, the following option is also available:

Tip

Obtain the customer's consent for changes to subscriptions. For more information, see Best Practices: Obtaining Customer Consent.

Illustration

sub bill customer retention decrease interval