July 3, 2012 | Authored by: Vindicia Team Blogs
Discover Your Recurring Billing Goldmine
The ongoing profitability of your digital business depends on more than just collecting fees. There are ways, particularly for businesses with a recurring billing model, to increase revenue without ever having to acquire one more customer.
The webinar, Mining the Gold from Your Existing Transactions, featuring payments expert Scott Tivey of CNP-Solutions, highlights small changes you can make to your subscription management and payments strategies to elongate customer relationships, and ultimately, make your digital business more profitable.
Where’s the Gold?
Revenue is hidden in many areas within a digital business’ own transaction base. By understanding and leveraging transaction data and reporting, you can make educated and impactful business decisions that will extend recurring billing relationships and increase your bottom line.
Profitability Lies in Recycle Strategy
In the recurring billing, card-not-present landscape, a vast number of card declines is a given. Digital businesses deploy various strategies to manage decline recycling—some are optimal, but most are not.
Considerations for recycling declines:
- Timing & frequency
- Unique by response code
- Bin number optimization
- Demographics & price-points
- Effective reporting
Profitability Lives in Customer-centric Transactions
There’s a whole set of customer-centric transaction procedures and policies that cause involuntary customer attrition. By analyzing the data you have and making small changes to your processes, you can bolster your customer retention. Keeping your existing customers—and their recurring billing cycles—is where profit lives.
Considerations for extending customer lifetime:
- Do I fulfill products or services before receiving payment?
- How do I contact customers to acquire new billing data (what are my options)?
- Do I allow my customer onto the service when in default?
Profitability Happens by Leveraging the Right Data
Are you correctly leveraging the data available to you? Although every digital business has a system filled with information unique to their business type and product or service, some key data which helps you process your transactions is available and relevant across all businesses. Leveraging the following data will result in increased recurring billing transactions and revenue.
- Zip code
- AVS, CVV, bin number
- Record indicators (recurring, moto, pre-paid)
- Customer information and reporting
Mine the Gold
By analyzing transaction data from your existing customer base, and making small changes to your processes and policies, you will make significant progress in extending customer retention Particularly in the recurring billing paradigm, imagine the impact of a 15% lift in revenue, month over month, year over year.
Watch Mining the Gold from Your Existing Transactions and discover your recurring billing goldmine.
Which billing platform is right for B2C subscriptions?Download