From Declines to Dollars: A Telehealth Subscription Billing Success Story
Discover how sticky.io empowered this company to creatively grow subscriptions, enhance revenue recovery and give customers greater control over their subscriptions
Challenges: Attaining Healthier Revenue Recovery
The company’s multifaceted operations under various brands offering telehealth products posed intricate challenges in managing subscription billing, safeguarding revenue and mitigating chargebacks. With a substantial portion of their revenue relying on subscriptions, the company needed a robust solution to streamline operations and ensure a seamless customer experience.
The company faced the challenge of safeguarding revenue while minimizing payment disruptions. Managing subscription billing across diverse brand offerings in the telehealth industry was complex, requiring a solution to ensure reliable payment processing.
In their pursuit of revenue stability, the company aimed to reduce involuntary churn and recover lost revenue effectively. They sought a solution to address declined subscription transactions and improve recovery rates.
To ensure long-term financial health and efficiency, the company needed to uncover untapped value within their operations and optimize revenue recovery to realize substantial cost savings.
The company employed payment cascading to enhance transaction success, Smart Dunning for efficient recovery, and data-driven insights to unlock hidden value and savings.
In the span of a year, the company rescued thousands of declined transactions with a 7% approval rate via payment cascading — the process of setting up multiple payment gateways in a predetermined order to increase the likelihood of successful payment processing. This can help ecommerce businesses reduce payment processing disruptions and improve their customers’ user experience. Recoveries spanned various decline reasons, including Call Issuer, Do Not Honor, Credit Floor and Processor Decline. Notably, credit card transactions achieved an 8.8% approval rate, debit card transactions 6.5% and prepaid card transactions 4.5%.
sticky.io’s Smart Dunning, which leverages machine learning to determine the optimal time to retry failed transactions with a unique date and time for each attempt, helped this company experience a robust 60-day revenue recovery rate. By turning declined subscription transactions into successful rebills, Smart Dunning helped the company’s rate of recovery reach 28.6% in that span, boosting revenue and reducing involuntary churn.
Leveraging sticky.io's cascading and decline recovery features, the company uncovered substantial untapped value. In addition to achieving significant revenue recovery, they also discovered an extra source of value by salvaging revenue across thousands of orders. This cumulative benefit resulted in millions of dollars in enhanced revenue recovery. When annualized, this strategic approach translated to substantial savings.
Results: Increased Approval Rate, Revenue Recovered
Through its partnership with sticky.io, this leading telehealth company achieved remarkable results, largely through payment cascading and sticky.io’s Smart Dunning solution. The company witnessed a significant 7% approval rate for cascaded transaction attempts from August 2022 to 2023.
The adoption of sticky.io's Smart Dunning solution led to impressive revenue recovery, with a stellar 28.6% of revenue recovered between October 2022 and April 2023, not only bolstering the company's financial health but also contributing to reduced involuntary churn to ensure a more stable revenue stream.
Overall, the company's collaboration with sticky.io yielded exceptional outcomes, helping to fortify its position as an industry leader.