Scale turned millions $ in declined checkout and renewals into revenue

Checkout fail. It's a familiar pain for marketers.
After investing thousands of dollars in targeting and re-targeting, the excitement of a potential customer placing an order turns into frustration when they fail to convert into a paying customer.
And in many of those cases, it’s due to payment decline.

The hidden cost of checkout churn

Did you know? ^{More than 10% of checkout purchases get thrown out of the funnel} right at the conversion stage due to credit card declines. The user enters his credit card number, hits “purchase”, and receives a failed transaction notice.

Those failed transactions can translate into millions of $ lost for your business, not including the lost marketing costs.

Here's another nugget: ^{30% of failed checkouts can actually be recovered into a closed deal.}
With Bounce’s AI-based payment solution, companies can save up to millions of dollars annually, gaining a higher return on their marketing efforts and lifting their top line by 5%!
The cumulative year-over-year impact of recovering lost checkouts is enormous.

It also goes way beyond immediate top-line revenue.

The fuller picture: understanding company growth impact

Let's explore how failed checkouts  influence your business's growth and performance:

• Top-line Impact: Lost deals directly dent total revenue, affecting company growth.
• Customer Acquisition Cost (CAC): Each lost deal not only hampers revenue but also resets the clock on acquiring new customers and increasing your average CAC.
• Retargeting Costs: A failed checkout experience is likely to prompt increased spending on retargeting campaigns to re-engage users and target new potential ones.
• LTV and Repeat Customers: A declined transaction at checkout leads to a bad user experience, and by that, you risk losing your customer permanently, impacting both the lifetime value (LTV) and the rate of repeat business.
• Conversion Rates:  Checkout failures directly affect checkout conversion rates and the success of the overall marketing funnel, with fewer leads and visitors that turn into customers and repeat customers.‍
• Purchase Size: Customers facing declined transactions tend to abandon their purchase initiative entirely. Of the few that do retry, they will often revisit their cart and remove purchases, resulting in a lower overall purchase value.

Unlocking lost checkout revenue with Bounce

Bounce helps companies prevent revenue loss and all other negative impacts of declined payments.
Our payment recovery platform uses ML to analyze millions of data points, identifying which checkout declines are valid and which ones should not have been declined. ^{Our solution recovers over 30% of payment declines, in real time.} 

Bounce seamlessly integrates into your existing checkout process, providing the user with a positive and smooth experience when identified as valid. We’re so sure of our data that the service is risk-free. Your customers enjoy a better checkout experience, and you enjoy a higher return on your marketing efforts.

Here’s how our checkout recovery helps our customers recover tens of thousands of dollars in lost checkout revenue.

Hidden bumps in subscription renewal affects your KPIs

The power of a subscription-based business is clear: once customers join your subscription plan, either for a digital service or a physical product, they’ll stick around for as long as they’re happy with what they’re getting, without needing to actively engage with your checkout flow again. 

This provides sellers with revenue predictability, while offering customers a hassle-free, continuous supply of your product.

The problem is, subscription renewals often face payment issues which can result in decline rates of up to 50%.

This means that a satisfied customer who got to the next payment cycle can't ultimately pay the seller. 

Getting customers to the next payment cycle and completing it successfully is key for subscription-based services and products, as it has a clear impact on retention rates, and accordingly - LTV and Unit Economics and, CAC.

‍

The impact of failed subscription renewals

Losing a customer over a failed transaction is less than ideal. This raises the CAC (Cost of Acquisition) as it forces you to essentially repeat the entire acquisition process. That  means retargeting that lead and pulling them back into your funnel. Not only does that lower your retention rates, but with more potential subscribers churning, your LTV rate drops too, which as you might have guessed, hurts your overall revenue. 

How Bounce improves subscription renewal rates

‍Our payment experts discovered that up to 50% of subscription renewals fail because of credit card declines. This highlights an important point for all merchants: credit card transactions can fail for different reasons, be it the company, the card, processors, or the bank. The main takeaway? The moment that happens, the seller is left with virtually no insight as to how that transaction could have even been salvaged. 

This is exactly why at Bounce we never underestimate a failed credit card transaction. Our ML algorithm meticulously analyzes tens of thousands of data points to uncover the real reason behind a renewal decline. Once that is established, we can identify the cause, and best of all, save them from slipping through your fingers. 

What happens under the hood?

• If we find there’s a chance to save the deal, we operate at the backend to make it go through.
• If we find there’s no way this renewal will ever be charged through this card, we will notify you, so you can work on other ways to bring this customer back to the payment cycle. 

From our experience, an average of 20% of the “almost lost” renewal deals can actually be saved with minimum effort and maximum wins.

More so, letting the subscriber know that the renewal didn’t go through, instead of trying to resolve the issue independently, may result in the customer ending the subscription altogether.

Bounce doesn’t require any additional budget taken into account. It also doesn’t require additional work after implementation. There is no need for customizing, monitoring, or defining anything. All you need to do is sit back and enjoy the absolute wins. Our guarantee policy involves 0% risk. We operate at the backend and approve the deals we identify as recoverable.  

Based on our experience, you will see an immediate increase of 5% in your top-line revenue. On top of that, all other KPIs - Retention, CAC, LTV will also drastically improve.