This webinar focuses on how to maximize the lifetime value of your recurring payments. During this session, you’ll learn: -Why the initial billing event is the most critical -What payment solutions are available to help you better retain customers -How to extend customer lifetime value with payment insights. To hear the audio associated with this webinar, please register on our website at: http://info.vindicia.com/Archived-Webinars-Maximize-Lifetime-Value-of-Recurring-Payments.html

1. Don’t Break the Cycle!
Maximize the Lifetime Value of
Your Recurring Payments
Melissa Rabasco
Customer Success Manager
Litle & Co.

2. 2
AGENDA
• Best practices for recurring payments
• Why declined authorizations happen
• What payment solutions are available to you
• How to extend customer lifetime value through payments

3. 3
BEST PRACTICE #1
The initial billing event is ALWAYS the most critical
• Process authorization transactions real-time
• Provide consumers with a toll-free number for customer service issues
• Terms and Conditions should be clearly disclosed and address all
applicable fees
• Utilize $0 authorization (when applicable) to validate consumer and credit
card information provided
• Initiate an email to consumers prior to the initial charge

4. 4
Use soft billing descriptors
• Help cardholders identify charges on their billing statements
• Eliminates confusion and prompts recognition
• Merchant name is typically truncated to three letters plus an asterisk,
followed by a detailed description of product/service
– Example: ACM* Great TV Hits DVD
• Installment transactions can reflect the current stage in the billing cycle
– Example: ACM* Great TV Hits 1 of 9
BEST PRACTICE #2

5. 5
Avoid interruptions in your recurring billing series
• Ensure transactions are properly marked as recurring
• Recycle authorizations based on BIN analytics
– Prepaid and gift cards
– Issuer trends
• Test recycle parameters and adjust accordingly
• Stale expiration date handling
• Avoid termination of customer accounts on first failed billing event
• Use account updater
BEST PRACTICE #3

6. 6
A: DECLINED AUTHORIZATIONS
Declines happen for a number of reasons:
✖ Account number replacement or expiration
✖ Insufficient funds or credit limit
✖ Bank system maintenance
✖ Temporary network problems
Declines impact your business:
✖ Loss of product
✖ Increased service costs
✖ Involuntary churn
✖ Decreased customer lifetime revenue
Q: WHAT’S THE PRIMARY INTERRUPTION IN
A RECURRING PAYMENT STREAM?

7. Involuntary Churn
WHATINTERRUPTSAPAYMENTSTREAM?
7
Customer
Lifetime
Value
$ $ $$
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$
Time
$
AUTH
DECLINE

8. 8
ACCOUNT UPDATER:
WHAT ARE MY RECOVERY OPTIONS?
You must assemble all account update requests and
ensure all relevant cards are included in the file
You must submit account update requests separately,
outside of the transaction path
You must apply all updated data to your internal systems
You must ensure that updated information is applied to all
subsequent transactions
All account update requests are managed automatically
All updated cardholder information is stored on your behalf
Optimum value of Account Updater is realized
Requires minimal (in many cases, no) IT investment to
adopt solution
Reports are always available to monitor performance

9. 9
Retry patterns are based on limited pool of historic
transactions data
Typically single retry pattern for all declines
Constant testing is required to maintain the best strategy
Result: Potentially sub-optimal decline recovery
The recycling process is managed for you, removing the
recycling burden and cost of maintaining optimal patterns
The solution is built on analytics from an extensive
transaction data set and constantly tweaked for optimal
results
Customized retry patterns
Requires minimal IT investment to adopt solution
Reports are always available to monitor performance
RECYCLING:
WHAT ARE MY RECOVERY OPTIONS?

10. RecoveryRevenue Solutions
10
Customer
Lifetime
Value
$ $ $ $ $ $$
$
$
$
$
$
Time
$ $
EXTENDING CUSTOMER LIFETIME VALUE

11. 11
Melissa Rabasco
Customer Success Manager
Litle & Co.
mrabasco@litle.com
THANK YOU!

12. Questions?
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webinar@vindicia.com
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