Cell Phone Service Provider Powers Up Revenue Recovery to 27.7% with sticky.io’s Smart Dunning
challenge:
low recovery rates and revenue loss
Operating in the competitive prepaid mobile services industry, this cell phone provider’s success hinges on maintaining consistent revenue streams and minimizing churn. By offering flexible, pay-as-you-go mobile plans, the company caters to a diverse customer base, including budget-conscious individuals and travelers.
However, with a baseline recovery rate of just 5% using a rules-based revenue recovery strategy, the merchant was losing valuable revenue opportunities. This inefficiency not only led to revenue loss but also risked customer dissatisfaction and attrition.The merchant needed a more advanced solution that could adapt to its unique customer base and payment environment, which included a custom CRM platform integrated with payment gateways like authorize.net, NMI and Stripe. They turned to sticky.io’s Smart Dunning service to address these challenges and unlock new revenue potential.
solution:
Smart Dunning deploys a tailored revenue recovery strategy for the cell phone provider
sticky.io’s Smart Dunning service leverages advanced machine-learning algorithms to optimize payment recovery efforts, adapting to individual customer behaviors and payment patterns. For the merchant, this meant a customized approach that fit seamlessly into their existing systems, enhancing recovery efforts across all transactions.
The sticky.io team worked closely with the merchant to integrate Smart Dunning into their CRM and payment gateway infrastructure. This seamless deployment allowed the merchant to start benefiting from Smart Dunning’s capabilities without disrupting their day-to-day operations.
Results
Within three months, the merchant saw a remarkable transformation in its payment recovery outcomes. Implementing sticky.io’s Smart Dunning solution led to:
• Recovery rate success: Improving from a baseline of 5% to 27.7%, the merchant saw a 454% increase.
• Efficiency: On average, only 2.15 attempts are now needed to achieve a successful recovery, demonstrating the precision of Smart Dunning’s algorithms and sticky.io’s ability to deliver impactful solutions in the evolving ecommerce subscription space.
• Speed: The average time to successful recovery was reduced to 12.99 days, further minimizing the merchant’s revenue disruption. The merchant’s success with sticky.io’s Smart Dunning service highlights the power of a tailored, data-driven approach to payment recovery.
By shifting from a rules-based strategy to Smart Dunning’s advanced technology, the merchant has significantly boosted its recovery rates, reduced churn and enhanced overall business performance. These changes have not only increased revenue for the merchant but have also strengthened its customer loyalty by providing a more reliable and consistent payment experience.
