Empowering Revenue Recovery: Optimizing Recurring Payments for a Major Publisher

The Client

This client is a major magazine publisher with a substantial annual revenue exceeding $100 million from print and digital subscription offerings. Facing challenges in optimizing their recurring payments processes, they sought assistance from Optimized Payments to increase revenue and operational efficiency.
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Optimization Benefit Realized

Recovered revenue
up to $20,000/mo.

From previously failed transactions.

The Challenge

The challenges faced by the client in their recurring payments landscape were multifaceted and had a direct impact on their revenue and customer retention efforts.

Revenue Losses

Without a robust retry mechanism in place, the client was unable to recover payments from customers whose credit cards had expired or were declined. This recurring revenue loss had a negative impact on the client’s financial performance and bottom line. Furthermore, there were missed chances to recover payments from customers who might have been willing to update their payment details if prompted effectively. These missed revenue opportunities further compounded the financial impact on the client.

Inefficient Retry Processes

The client’s existing retry processes were inefficient and ineffective in handling terminally failed transactions. These transactions, where customers did not update their credit card details, resulted in lost revenue for the client. The inefficiencies in payment processing were also detrimental to the client’s overall operational performance.

Impact on Customer Retention

The inefficiencies in retry processes also had implications for customer retention. Customers whose payments were not successfully processed might perceive the client’s service as unreliable or inconvenient, leading to more potential churn and loss of valuable subscribers.

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The Solution

Optimized Payments embarked on a thorough audit of the client’s retry processes, aiming to identify areas for improvement and revenue recovery. Our recurring payments team meticulously reviewed each retry process and uncovered critical insights, including a significant opportunity at the fulfillment level.

For context, CDS, or Customer Data Services, refers to the system or process responsible for managing customer information, including payment details and subscription data. By identifying the cost-saving opportunity at the fulfillment level (CDS), we were able to collaborate with the fulfillment company to assess their retry policy and implement a new, optimized policy tailored to the client’s specific needs, identifying and addressing deficiencies that were hindering revenue recovery.
The new policy that the Optimized Payments team helped implement not only targeted immediate revenue recovery but also laid the foundation for ongoing optimization across all recurring payment processes.

The Results

The implementation of the new retry policy yielded remarkable results for the client
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Recovered Revenue

Up to $20,000 per month from previously failed transactions.

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Improved Efficiency

In revenue recovery processes, leading to enhanced financial performance and customer retention.

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Enhanced Retry Policies

Across all recurring payment processes, resulting in sustained revenue growth and operational efficiency gains.

The Conclusion

Through strategic collaboration and targeted optimization efforts, Optimized Payments successfully addressed the client’s challenges in recurring payments. By identifying and rectifying deficiencies in retry processes and implementing a new, effective retry policy, we not only recovered lost revenue but also set the stage for ongoing revenue optimization and operational efficiency improvements.

Our partnership with this major magazine publisher demonstrates the value of proactive payment optimization strategies in driving revenue growth and maximizing operational efficiency in the subscription-based business model.

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