Large Financial Firm SeesMassive Gains in Revenue

The Client

The Client is a large financial media firm with significant influence and reach in North America. For years, this firm has been providing financial insights and advice for millions of people. While the client produces free market news articles and commentary, they promote their more personalized financial insight services through the sale and renewal of subscriptions. These paid subscriptions are sold to customers in monthly and annual packages.
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Optimization Benefits Realized

70%

increase in approval rate

$1M

revenue per Week ($500M+ per Year)

The Challenge

As every subscription business knows, retention is the single most important metric for maximizing your bottom line. When this merchant saw their retention rate slowly and steadily erode by 30%, they contacted Optimized Payments to help claw their way back into profitability and mitigate the massive involuntary churn they were experiencing.
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The Solution

Optimized Payments exists to uncover and unlock the hidden value in electronic payments. We do this by digging in deep to our clients’ payments data, analyzing the performance, processes, and vendors in play to find areas where changes can make a meaningful impact.

We immediately found a few areas for improvement by sharing specific insights from top issuers and optimizing the configuration of account updater. Working hand-in-hand with our client, we implemented our recommendations and measured impact over the coming days, weeks and months. But we didn’t stop there – after making a few big strides, we tested retry policy changes by BIN and reason code, and the initial results are promising. Our Harmonize analytics platform provides a consistent framework to analyze decline data, and it identifies levers that can drive improved authorization performance.

The Results

Massive revenue lift: The changes made to the client’s systems required almost no development or IT resources on their end but brought in massive gains in revenue. We were able to help them realize a 70% increase in approval rates within only a few months. That 70% lift accounts for an incremental $1,000,000 in retention revenue per week, or just over $50M annually, without spending extra money on acquisition. We continue working with this merchant, using our proprietary analytics to monitor and provide continuous process improvement.
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