Delegate your credit card declines with caution.
As a business owner or CEO you are focused on the big picture of your business. That is why it can be a little unsettling when you realize that you have a credit card decline problem. Maybe you own a SaaS company or an information company like we did in 2015. If so, then you may have a sizable percentage of your annual revenue wrapped up in subscription payments, which fail at a rate of 10-12% every month! This was a big problem at our last company, and we did virtually nothing about it until that number quickly became a 6-figure number! All of a sudden we realized we had do something to get this revenue back into the business.
We handled this problem in 3 stages which played out over many months of trial and error. Here are the 3 things we did to delegate the issue of credit card declines:
Stage 1 of Delegating Credit Card Declines: Automated Emails
This first thing we did was to delegate this problem to software. We set up an automated email sequence inside using our dunning software and waiting for the money to come pouring back in. The problem was, not much money was coming back. Don’t get me wrong we recovered some of the lost payments but what we didn’t know was that dunning software only averages a 12-15% recovery rate. That wasn’t good enough for us, so we moved to stage 2.
Stage 2 of Delegating Credit Card Declines: Drive-By Delegation
The second thing we did was to hand this off to someone on our team without much vision or direction. We found someone in our payment department and we dropped this problem on their desk, asked them to handle it and walked out of the room. It was a prime example of drive-by delegation which is never an effective way to solve a problem. This task was just number 17 on their to-do list and it just wasn’t a top priority for them. With someone looking into this occasionally we were able to recover around 30% of this lost revenue, but we were still losing 70%!
Stage 3 of Delegating Credit Card Declines: Create A Team
The third thing we did was to create an entire team to do nothing but address the problem of credit card declines. We hired people for this specific task and we built a team. The results were remarkable. We started to recover 80% of our credit card declines. What we learned was that this problem is only really solved when you can allocate a full team of people with a full time focus on solving the problem of credit card declines.
The only problem with hiring a team to solve this problem was that it was expensive. We were paying full time salaries to solve a static problem. There was no opportunity for those employees to generate more income for our company outside of the payments that were failing. At best they were going to recover 80% of a 6-figure number. It was worth the investment, but just barely.
There Is A Better Way
We started a company called Gravy to solve this specific problem for businesses. We want to make solving the problem of credit card declines to be a no-brainer for business owners and CEO’s. We want to give you all the advantages of having a full-time team dedicated to solving this problem without the expense associated with full-time employees. We want to help you dominate this problem with a full time focus that implements all the advantages of automation and human touch. We want you to know that someone is thinking about your credit card declines night and day, and the best part is, you only pay us if we make you money. So the money coming back to you is all Gravy!
Book a call to see how we can help you solve your credit card declines.