How ClinicSense reduced involuntary churn caused by failed payments
The Challenge
Failed payments on recurring billing was causing involuntary churn
ClinicSense has a low risk profile compared to average SaaS companies, both because they are a B2B company, and because their customers offer in-person services. ClinicSense are using Stripe Billing to manage subscriptions, along with payment authorization optimizations from Stripe. They were seeing low recurring payment failure rates: about 4% every month, compared to today’s 15% industry average for subscriptions.
Despite the comparatively lower payment failure rate, CEO Daniel Ruscigno found that when payment issues did occur, they disrupted the customer journey, causing some subscribers to let the payment drop and never restore it. “If we weren’t recovering the payment with FlexPay, it would be more likely they wouldn’t make their payments. […] Some of them might never come back”. This is called involuntary churn. It’s a generalized problem with market studies showing that 27% of subscribers are likely to end their subscription if they experience service interruptions due to failed payments. Payments fail because of an archaic system that neither merchants nor subscribers are responsible for, causing customers to churn involuntarily.
The Solution
A specialized failed payment solution that discreetly recovers payments and lowers churn
ClinicSense entrusted FlexPay, a verified Stripe partner, with their failed payment recovery. In order to increase customer retention and revenue FlexPay’s Invisible RecoveryTM integrates directly with Stripe Billing to create specialized payment recovery strategies. All merchants are supported by a team of payment experts that configure the merchants setup for maximum performance.
- ML/DL trained on
5B+ transactions - quick payment restoration
- gentle on merchant account
Invisible RecoveryTM
How does it work?
Invisible RecoveryTM uses AI-powered payment recovery strategies that optimize for customer retention following recovery. This technology was developed with in-depth payments industry expertise and data from 5B+ transactions gathered with financial industry partnerships. FlexPay’s Machine Learning and Deep Learning models review in (near) real-time why each individual transaction fails and adopts the recovery strategies accordingly. This allows for quick restoration of the payment retries mindfully, avoiding harm to the merchant account and avoids inconveniencing subscribers.
The Result
With more than double the payments recovered in the background, ClinicSense unlocked more revenue
With a recovery strategy configured specifically for ClinicSense, FlexPay delivered an increase of 69% over their initial baseline- taking their failed payment recovery performance from 38% to 64%. This level of improvement meant that ClinicSense could access increased profits to fuel their growth. By almost eliminating disruptions to their customer journey, each additional successful payment recovery preserved the full LTV of the subscriber. This provides additional revenue from each subsequent month of billing.
FlexPay for Stripe
Optimizing transactions and revenue delivery
About ClinicSense
ClinicSense is a software as a service (SaaS) company, founded in 2013. Their platform supports over 7000 massage therapists who use it to run their business with services including electronic SOAP notes, intake forms, appointment management, payments, scheduling, and marketing activities.
