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July 18, 2012 | Authored by: Vindicia Team

ART™ Imitates Science

ART™ is an innovation. Late last summer, Mark Elrod and I had a classic petri dish moment.

We didn't discover antibiotics, but we did figure out why we'd accidentally boosted overall revenue of one of our clients by about 20% for a week or two. Although we understand that 20% isn't sustainable across all business models, we quickly figured out that we could enable clients to add instant discounting of otherwise churning subscribers. By combining this discovery with our massive amount of transaction data from over 120 million end user accounts and adding some guardrails, we are able to take some historically risky retention techniques and turn them into safe, reliable modern methods. With huge results.

In initial testing with large customers we've found that we can recover 40% to 50% of subscribers that digital businesses would have otherwise given up on even after applying their own sophisticated retention processes.

We are excited. Our patent attorneys are excited.

Vindicia exists to drive the adoption of premium digital goods and services because we believe that not all information "wants to be free, man." Now we're giving subscription businesses an extremely powerful new tool to extend their customer lifetime value and make more money. Longer ACLV (Average Customer Lifetime Value) means more dollars to spend on customer acquisition. More subscribers and stronger growth leads to faster adoption of over the top video, more compelling gaming, better magazines, more interesting models for books, and more compelling SaaS software.

At the same time our CTO, Brett Thomas, pointed out an obvious but insightful thought; we should give digital businesses who aren't ready to replace their entire billing and CRM functions, access to ART only for their expected subscriber churn (i.e. failed transactions). Vindicia Select was born.

We continue to add value to Vindicia CashBox, and though our ART module isn't for everyone, it shines a light on our continuing focus on extending customer lifetimes. We're now heavily investing in leveraging our data about long-term customer life to help inform customer acquisition. Our vision for Vindicia CashBox and Vindicia Select is to allow digital businesses to take advantage of our unique view of digital end users to begin to control their CAC (Customer Acquisition Cost) ratio with or without Vindicia running their core billing. We want our digital businesses to be able to optimize their customer acquisition spend while further extending ACLV and thus profitability.

Understanding the estimated lifetime value of a potential new subscriber in real time on your website is the 'promise land’ of building online revenue. Through Vindicia CashBox and Vindicia Select, we're going to take the Digital Economy there. And as we do, Internet users are going to get amazing new services on their connected devices at attractive price points.

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Vindicia Team

Vindicia Team

We value our subject matter experts and the insights each of them brings to the table. We want to encourage more thought leaders to come together and share their industry knowledge through our blog. Think you have something interesting to contribute as a guest blogger? Contact us at info@vindicia.com