Don’t Break the Cycle! Maximize the Lifetime Value of Your Recurring Payments

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This webinar focuses on how to maximize the lifetime value of your recurring payments. During this session, you’ll learn:

-Why the initial billing event is the most critical
-What payment solutions are available to help you better retain customers
-How to extend customer lifetime value with payment insights.

To hear the audio associated with this webinar, please register on our website at: http://info.vindicia.com/Archived-Webinars-Maximize-Lifetime-Value-of-Recurring-Payments.html

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  • Thought this was a good visual to previous slide and also a good place to tie in the customer lifetime value story
  • Use this as a conclusion slide to discuss how these solutions holistically come together to help you extend customer lifetime value
  • Don’t Break the Cycle! Maximize the Lifetime Value of Your Recurring Payments

    1. 1. Don’t Break the Cycle! Maximize the Lifetime Value of Your Recurring Payments Melissa Rabasco Customer Success Manager Litle & Co.
    2. 2. 2 AGENDA • Best practices for recurring payments • Why declined authorizations happen • What payment solutions are available to you • How to extend customer lifetime value through payments
    3. 3. 3 BEST PRACTICE #1 The initial billing event is ALWAYS the most critical • Process authorization transactions real-time • Provide consumers with a toll-free number for customer service issues • Terms and Conditions should be clearly disclosed and address all applicable fees • Utilize $0 authorization (when applicable) to validate consumer and credit card information provided • Initiate an email to consumers prior to the initial charge
    4. 4. 4 Use soft billing descriptors • Help cardholders identify charges on their billing statements • Eliminates confusion and prompts recognition • Merchant name is typically truncated to three letters plus an asterisk, followed by a detailed description of product/service – Example: ACM* Great TV Hits DVD • Installment transactions can reflect the current stage in the billing cycle – Example: ACM* Great TV Hits 1 of 9 BEST PRACTICE #2
    5. 5. 5 Avoid interruptions in your recurring billing series • Ensure transactions are properly marked as recurring • Recycle authorizations based on BIN analytics – Prepaid and gift cards – Issuer trends • Test recycle parameters and adjust accordingly • Stale expiration date handling • Avoid termination of customer accounts on first failed billing event • Use account updater BEST PRACTICE #3
    6. 6. 6 A: DECLINED AUTHORIZATIONS Declines happen for a number of reasons: ✖ Account number replacement or expiration ✖ Insufficient funds or credit limit ✖ Bank system maintenance ✖ Temporary network problems Declines impact your business: ✖ Loss of product ✖ Increased service costs ✖ Involuntary churn ✖ Decreased customer lifetime revenue Q: WHAT’S THE PRIMARY INTERRUPTION IN A RECURRING PAYMENT STREAM?
    7. 7. Involuntary Churn WHATINTERRUPTSAPAYMENTSTREAM? 7 Customer Lifetime Value $ $ $$ $ $ Time $ AUTH DECLINE
    8. 8. 8 ACCOUNT UPDATER: WHAT ARE MY RECOVERY OPTIONS? You must assemble all account update requests and ensure all relevant cards are included in the file You must submit account update requests separately, outside of the transaction path You must apply all updated data to your internal systems You must ensure that updated information is applied to all subsequent transactions All account update requests are managed automatically All updated cardholder information is stored on your behalf Optimum value of Account Updater is realized Requires minimal (in many cases, no) IT investment to adopt solution Reports are always available to monitor performance
    9. 9. 9 Retry patterns are based on limited pool of historic transactions data Typically single retry pattern for all declines Constant testing is required to maintain the best strategy Result: Potentially sub-optimal decline recovery The recycling process is managed for you, removing the recycling burden and cost of maintaining optimal patterns The solution is built on analytics from an extensive transaction data set and constantly tweaked for optimal results Customized retry patterns Requires minimal IT investment to adopt solution Reports are always available to monitor performance RECYCLING: WHAT ARE MY RECOVERY OPTIONS?
    10. 10. RecoveryRevenue Solutions 10 Customer Lifetime Value $ $ $ $ $ $$ $ $ $ $ $ Time $ $ EXTENDING CUSTOMER LIFETIME VALUE
    11. 11. 11 Melissa Rabasco Customer Success Manager Litle & Co. mrabasco@litle.com THANK YOU!
    12. 12. Questions? Email us: webinar@vindicia.com Visit us: Blog: vindicia.com/blog Community: community.vindicia.com Twitter: @Vindicia Website: www.vindicia.com

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