Menu
Request A Demo

Everything You Need To Know About Recovering Failed Payments

Did you know that 10-15% of all recurring payments fail?

What’s worse, studies show up to 50% can be lost due to involuntary churn, or subscriber retention. In effect, companies will notice the lost revenue, wasted staff time, and decreased subscriber retention. When a business works hard for each subscriber, why lose even one due to a failed payment? The good news is businesses can recover 70-80% of failed payments! By recovering failed payments seamlessly, business owners build trust with their subscribers and increase their average subscriber lifetime value.

Reasons for Failed Payments

There are a variety of reasons payments fail but these are the most common:

  1. Non-Sufficient Funds or Overlimit
  2. Expired Card
  3. Fraud
  4. Lost/Stolen Card

Knowing the reason for a failed payment helps your business handle the declines accurately. You
wouldn’t want to e-mail or call a subscriber saying their payment declined when it was reported
stolen; it’s insensitive and can cause the subscriber embarrassment. Instead, you can have the
correct information right away to effectively communicate with your subscriber and continue to
build trust.

Failed Payment Recovery

Did you know about one third of subscribers will need to update their credit card information each
year due to changes such as an expiration date?

Prevention is the first step and key to avoiding failed payments. Account Updater is a service
you can implement to avoid failed payments before they happen. Account Updater provides
proactive updates on cards that are lost, stolen, expired, or invalid card information.
Account Updater will ensure each subscriber’s card information is kept up to date.

The most common reason for recurring payments to decline is NSF or over-limit. This means the
funds just weren’t available when the subscribers dues were run. Sure, you can stick to e-mails
and phone calls trying to recover the subscriber payments, but it’s just not efficient. Having an
expert in failed payments ensures you won’t lose a subscriber, your staff can focus on core
business, and the best part of being an expert is they know the best way to handle a failed
payment. Pick a company to partner with that can demonstrate years of data and algorithms to
guarantee the highest recovery rate.

Recovering failed payments can happen all behind the scenes without the member even knowing
there was a potential issue. The member and staff don’t have to have an awkward and
embarrassing conversation. Instead, their payment goes through, and the business keeps themember.

Studies show when you call or e-mail a member to address a failed payment, it can end
in a cancellation.

Recovering failed payments can be a full-time job, and at best, you achieve a 70% success rate.
Hiring a company in the field can result in at least an additional 10% recovery rate. Membership
retention is something every business should focus on; losing a monthly payment can sting a
little but projecting the loss of that one subscriber for the months to come can compound over
time.

Don’t lose your subscribers due to a payment issue. Increase your revenue by ensuring subscriber card data is up to date and keep your cash flowing. Cashi specializes in reducing
the risk of losing even one subscriber.

5 Ways Your Subscription Business Can Maximize Text Messaging

 

5 Ways Your Subscription Business Can Maximize Text Messaging

 

There are many different ways you can communicate with your subscribers; A combination of phone calls, e-mails, and text messages can be useful but the statistics from text messages don’t lie. This is one of the quickest, most effective ways to communicate. 89% of consumers would like businesses to communicate with them through SMS text messages. Text messages easily have the most success with a 98% open rate!  

1. Keep your subscribers engaged

Subscriber retention is key in your business and with text messages you know your messages are being received. Personal relationships are great when we can be face to face but when we can’t, staying in touch is vital. Keep your subscribers engaged with you and your business by creating custom texts.

2. Communicate Sales or Promotions 

Did you know 54% of consumers would like to receive promotions or sales via text messages? Text promotions and coupons are 10 times more likely to be used than traditional coupons. As an added bonus, members don’t have to dig through their e-mail inbox to find the message containing the promotion.

3. Confirmation Messages

A perfect example for utilizing text messages is after an order is placed. This a key way you can communicate with your subscriber and lets them know you received their order and it is being processed. It makes the subscriber feel connected and secure with their order.

4. Shipping updates 

Shipping updates change quickly and it’s important to get information out to your subscribers in real time. With the stats listed above, text messaging is your go-to for sending your subscriber shipping updates. You can let your subscriber know about delays, or any other shipping-related changes.

5. Billing Information 

The perfect way to send quick billing reminders or updates is through text messages. They can be short and personal with no obligation to respond. You can use friendly reminders to let your clients know about past due bills. Businesses can see better results for payment recovery or updating payment information.

 

WISMOlabs and Cashi Partner to Help Subscription Box Retailers Increase Customer Loyalty and Drive More Revenue

Cashi and WISMOlabs Partner to Help Subscription Businesses Increase Customer Loyalty and Drive More Revenue

 

Now customers can preserve and protect cash flow with Cashi’s intelligent payment processing and WISMOlabs post-purchasing experience.

 

Cashi, the intelligent payment processing system for subscription businesses has entered into a partnership with WISMOlabs, the leading post purchasing customer experience platform.

 

“WISMOlabs and Cashi working together is a win-win for customers in the subscription and membership market,” says WISMOlabs CEO and founder Dmitri Rassadinke. “Our customers both rely on our collective intelligence to drive growth. The combination of Cashi’s payment solutions and the strategic marketing tools WISMOlabs offers will grow businesses and keep subscribers engaged to increase average subscriber lifetime.”

 

Cashi and WISMOlabs partnership will offer businesses unique tools to build trust and security with their subscribers. The leading AI capabilities that only eCard and WISMOlabs have delivers an exclusive service together.

 

“We are excited to combine WISMOlabs exceptional post-purchasing experience with Cashi’s intelligent payment processing to deliver a service that will increase revenue and retention rates for our customers.” said Craig Millius CEO of Cashi.

 

This partnership is a perfect fit that will propel subscription businesses even further with a more efficient and effective process from running a payment to owning the post-sale experience. Acquiring a new subscriber is a great way to improve the bottom line, but retaining subscribers is key to increasing revenue, and that is exactly what this partnership will accomplish.

 

To learn more about Cashi’s intelligent payment processing click here.

Stay Woke: 4 Steps To Avoid Losing A Customer Due to A Failed Payment

A thriving subscription box company means constantly acquiring more customers, right?

Not so fast. While attaining new subscribers is great for your bottom line, the key to sustained and increased revenue lies in keeping your existing subscribers on board. We’ve crunched the numbers. Acquiring a new subscriber can cost four times more than retaining an existing subscriber.

So, how do you keep your subscribers? Payment issues are the leading cause for subscribers jumping ship. Here are four steps to combat failed payments and avoid involuntary churn.

Step 1: Determine Why The Payment Failed

A payment could fail for a myriad of reasons. For example, the account closed, there are insufficient funds, it’s over the limit, the card is expired, invalid, or restricted, etc. Determining the reason is important for how you will handle that specific subscriber moving forward.

Step 2: Payment Rescue Mission

Depending on what is uncovered as the culprit, you then have the intelligence to build a rescue mission to solve the problem. Whether that’s EFT collections or updating card information, you now have the information needed to fix the issue and prevent it from happening in the future.

Step 3: Catch Your Cash

Now that you have a plan of attack, this is where some people make the mistake of reaching out to the customer, which can trigger cancellation of service. Reduce your risk of losing a customer by updating the information without involving them. Even better, implement updates automatically to ensure customer data stays up to date to avoid declined payments in the first place. In addition, flexible payment schedules allow you to set the billing cycle around each customers’ lifestyle to ensure the funds are ready and available when it’s time to process the authorized transaction.

Step 4: Increase Average Customer Lifetime = Subscribers Like Woah

Preventing a failed payment allows you to increase subscriber retention by keeping disruptions at bay for you and your customer. Another key component of retaining subscribers is by regularly engaging with them at the right time. Cashi’s web-based service gives you the tools to stay connected with your subscribers faster and easier with the click of a button via phone, text, or email. Take your pick!

Don’t lose your customers due to a payment issue. Increase your revenue by ensuring subscriber card data is up to date and keep your cash flowing.

Cashi specializes in reducing the risk of you losing a customer. Visit cashicash.com to schedule a free demo and learn more about integrating Cashi’s software with your subscription company!

Request A Free Demo

First, we need some information. Jot down your name and a quick message and we’ll reach out!