Leading Telco Company Experiences Immediate Boost in Approval Rate

The Client

Serving a customer base of over 32 million customers throughout the United States, our client is a prominent telecommunications company. For over two decades, they have been a trusted communication and entertainment solutions provider.  Their clientele spans from small and medium-sized enterprises to residential users, contributing to an impressive annual revenue exceeding 50 billion dollars, driven by monthly and annual subscription services.

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The Challenge

Customer retention stands as a vital concern for all subscription-based organizations, given its direct impact on their bottom line. Our client faced customer churn stemming from payment failures and sought assistance in pinpointing the underlying causes of churn and developing a proactive strategy to prevent it.

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The Solution

Initially, we conducted an extensive audit of all their existing payment processes, analyzing each aspect over several weeks.

Leveraging our findings, we made tailored recommendations, aligning them closely with the company’s available resources and objectives. With an emphasis on efficiency, we prioritized quick-win initiatives that could be implemented without imposing significant demands on their IT team.

Our robust analytics platform, Harmonize, was deployed for continuous monitoring to provide their team with real-time insights into the performance of our recommendations and future improvements.

At Optimized Payments, we embrace a collaborative approach, actively engaging as partners with our clients. With this client we assumed responsibility for overseeing and managing the execution of our recommendations, ensuring seamless integration and optimal outcomes.

The Results

Implementing the strategic recommendations led to a measurable improvement in our client’s operational efficiency. Notably, there was an immediate 1.2% boost in the approval rate for transactions. This incremental enhancement is significant considering the scale of operations and the volume of transactions processed daily. Over time, this improvement is projected to compound, potentially leading to an estimated 15% increase in the subscriber base without additional expenditure on customer acquisition efforts.
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Detailed Impact Analysis

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Financial Gains

The increased approval rate directly contributed to higher revenue retention. Assuming an average monthly bill of $100 per customer, even a 1.2% improvement translates into substantial annual revenue gains.
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Customer Satisfaction and Retention

Improved transaction success rates enhance customer experience, reducing frustration and attrition rates associated with payment failures.
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Operational Efficiency

The deployment of the ‘Harmonize’ analytics platform allowed for real-time monitoring and rapid adjustments, further boosting the effectiveness of payment processes.

Client Feedback

The targeted changes to our payment systems not only enhanced our transaction success rates but also strengthened our customer loyalty and satisfaction.

Executive Testimonial

Customer Feedback

Early results show a marked improvement in customer satisfaction, with fewer complaints related to billing and payments.
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Future Projections

Long-Term Subscriber Growth

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The continuous optimization of payment processes is expected to keep improving the approval rates, which could result in an exponential increase in long-term customer retention and subscription growth.

Cost Efficiency

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The increase in approval rates helps avoid costs associated with re-acquiring customers or additional marketing spend to offset churn.

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These results underscore the value of strategic focus on operational efficiency and customer satisfaction. The positive outcomes from this initiative have set a precedent for future operational enhancements driven by Harmonize analytics and have been integral in redefining the client’s approach to customer experience management.

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