How FlexPay’s AI Invisible Recovery™ solved the problem of passive churn and revenue leaks for Community.co’s business
Community.co has pioneered the business of community for over a decade. Community.co create and manage purpose-built community programs for business executives, leading affinity brands and business networks. To date, they host over 50 communities with 25K+ members. These communities are made up of senior executives from some of the most exclusive brands in business.
Challenge
Community.co members expect high levels of service, a great customer experience, and continual, ongoing access to the network when they need it. Thus, Community.co needs to ensure members can always access their platform and avoid any service interruptions or inability to access the platform. Unfortunately, Community.co, like most businesses with a recurring billing model experiences high levels of credit card false declines on member’s monthly membership payments. These false declines, or card approval declines on legitimate transactions, was forcing Community.co to contact and connect with every affected member.
Not surprisingly, high powered business executives in large organizations are very hard to reach. It would often take Community.co days or even weeks to access their members to resolve payment issues. Failed payments, combined with a manual resolution process, caused multiple problems for Community.co including lost revenue, added customer service costs to engage with members, poor customer experience, and member churn.
Beyond optimizing failed payment recovery, Community.co also required a partner who prioritizes privacy and security because of their sensitive member payment data and information.
- The highest performance failed payment recovery solution
- An automated solution that eliminates or reduces manual intervention and customer involvement in the recovery process
- A solution that works quickly to minimize service interruptions
- High levels of privacy and security.
Solutions
FlexPay’s AI-Powered Invisible Recovery
FlexPay’s Invisible Recovery™ solution is built with algorithms informed by decades of payments industry experience and models are trained on 5B payment transaction records. FlexPay’s AI autonomously creates individualized payment submission strategies optimized for authorization approval. This capability delivers the highest rate of declined payment recovery in the industry, delivering more payment recovery, more revenue, and more profits.
The relationship between failed payments and customer churn is not always well understood, but up to 44% of consumers churn after a false decline. In fact, there is a direct relationship between customer visibility to a failed payment, which is created either through service interruptions or through recovery methods that require customer involvement, and churn.
Failed payment created churn was a major issue that Community.co experienced. Their community members are often difficult to reach, but their prior recovery approach required customer contact. In fact, before FlexPay was deployed, many of Community.co’s members churned through failed payments without intending to.
FlexPay’s invisible false decline recovery works effectively, works quickly, and often avoids the need for member engagement, Plus, FlexPay’s recovery performance delivers additional value from the revenue earned on additional month’s billing from the accounts who experienced a failed payment, which would not have been realized without successful recovery.
FlexPay also meets Community.co’s needs for security and privacy. FlexPay maintains a strict Level 1 PCI Compliance, which is reviewed and certified annually. FlexPay adheres to all data security best practices to minimize the risk of data breaches.
I was very pleased to see just how much privacy and security was taken into account by FlexPay’s offering; it’s both seamless and something that we could trust. FlexPay team is fast on their feet to enable support when needed and the level of care continues to be awesome
– Scott Gerber, Community.co
CEO and Co-Founder
Result
Failed Payment Recovery uplift
FlexPay has recovered up to 52% of failed payments for Community.co, delivering significant improvements in revenue, customer retention, and profit growth.
Community.co invests significant resources to optimize member acquisition, member satisfaction, and member longevity. FlexPay helps optimize all these priorities. In fact, the increased customer LTV generated as a result of FlexPay’s Invisible Recovery solution has allowed Community.co to increase it’s acquisition budgets, improve customer retention, and increase profitability.
Community.co is extremely selective on who they work with and FlexPay aligned with their goals and ultimately the value it brought.
Our job is to be highly visible when we’re needed, highly invisible when we’re not. FlexPay fits into that movement
– Scott Gerber, Community.co
CEO and Co-Founder
