Improve Transaction Success Rates and Reduce Churn With Recurly’s Revenue Optimization EnginePosted Feb 01, 2018
On average, 13 percent of recurring transactions are declined each month. Repairing these transactions is vital to any subscription commerce business as it often leads to a loss of revenue.
Today, Recurly announced a new machine learning-based technology, the Revenue Optimization Engine, that can repair transaction declines and help businesses boost their monthly revenue by 9 percent on average
Using machine learning, the Revenue Optimization Engine can apply an individually-tailored, dynamic retry schedule to failed transactions so they process successfully. Using this technology, subscription businesses recover an average of 61% of failed subscription renewals. This increased payment success rate increases revenue and decreases subscriber churn that results from failed transactions.
Subscription commerce depends on processing recurring transactions successfully each billing period. If transactions fail, revenue is lost and customers can be lost, or churn. Recurly has processed hundreds of millions of transactions for a wide variety of subscription commerce businesses and, as a result, has built a statistical model with billions of attributes describing recurring transactions.
Recurly’s Revenue Optimization Engine provides businesses with the ability to:
Repair failed transactions: Using machine learning to craft an optimal retry schedule that is tailored to each individual declined transaction, credit and debit card payment issues are quickly resolved.
Minimize involuntary churn: When not managed appropriately, declined transactions can lead to involuntary subscriber churn, a type of churn which can cause otherwise-satisfied subscribers to be lost. The Revenue Optimization Engine helps subscription businesses minimize involuntary churn by resolving a greater amount of declined transactions in a shorter amount of time.
Streamline the customer experience: The Revenue Optimization Engine reduces the number of emails, texts or alerts asking subscribers to update billing info or resolve a problem with their payment. This allows subscription businesses to focus on subscriber satisfaction efforts rather than payment questions.