Churn from “card declined by processor” estimated to be responsible for 2-5% of all lost potential sales
While losing customers to cancellation is bad, losing customers who want to keep paying you is painful. Merchants that use decline salvage can reduce churn and recover recurring revenue some would consider un-collectable.
How much of your Monthly Recurring Revenue (MRR) is at risk?
Every customer lost to churn today negatively impacts future annuity revenue. How much of your revenue is at risk and are you doing everything you can to retain recurring customers?
Any business that depends on MRR will see churn from unwanted credit card errors.
It is important to understand that churn not only happens when a customer comes up for renewal, but it also happens much earlier in the customer lifecycle. Simple reasons (such as an incorrect credit card number or expiration date, insufficient funds, credit card rejecting an international charge, or other technical issues) are as much to blame for churn as a cancellation. One example is the “Card declined by processor” error, in which case the card information is often correct but the bank won’t allow a merchant to charge the card.
While many other processes can be improved and optimized, churn from “card declined by processor” – is estimated to be responsible for 2-5% of all lost sales.