Credit Card Declines happen every day in business.
It’s an unfortunate reality in which every business owner and CEO is well-versed. On average, you can expect anywhere from 10-12% of your customers’ credit card transactions to fail. That percentage is about as consistent as the rising sun. And the percentage is actually higher for businesses that operate with installment plans, or subscription revenue. And while most business owner know that this is happening, what they don’t know is how much money it is costing them! Credit card declines are a big deal and if you do not have a plan to address this for your business, and if you do not have a person taking charge of your credit card declines, than you are almost certainly letting thousands of dollars walk right out of the back door of your business.
So what is the answer? What do you do to fix this problem? Well, it all starts with hiring the right person to close the back door of your business. We at Gravy have been closing the back doors to businesses for 6 years and we have discovered that there are certain characteristics that a person must have in order to do this job well. Here’s what you should look for when you are hiring that person.
Credit Card Decline Employee Skill Set #1- Must Be Empathetic
You may be tempted to go find a super-aggressive person who will relentlessly hound your customers into resolving their credit card decline issues. (Think collections agency) And while there is certainly nothing wrong with hiring a go-getter, they have to operate with a certain amount of empathy. The ‘collections-agency’ approach may be effective in recovering the failed payment, but it will ultimately cost your company money. Threats, and fear tactics may get that payment back on-line, but you will ultimately lose out on the customer lifetime value. The person you hire to sure up the back-side of your business must be an advocate for the customer. It must be someone who is willing to problem-solve for the customer, and think creatively to help get their payment back on-line. This approach will extend your customer lifetime value, and it just a much better way to treat your customers.
Credit Card Decline Employee Skill Set #2- Must Be Consistent
Following up with customers whose payment has failed is tedious work. It usually requires multiple emails and multiple touchpoints, which will make this job very repetitive. But the secret sauce in recovering these failed payments is consistency. No one really enjoys updating their credit card information, and to your customer this never feels urgent. So to help your customer feel the same sense of urgency as you, you must be consistent. Which is why the third skill set that we are about to discuss is so important. And while this job may not sound appealing to you, just know that there are people who enjoy the predictability and gratification that comes from implementing a system that produces results over and over.
Credit Card Decline Employee Skill Set #3- Must Be Hungry
As with most things in life, it usually pays to be proactive. The third ingredient to finding the perfect employee to take charge of your credit card declines is hunger. This is someone who can maintain an aggressive approach to your failed payment problem while balancing the need for empathy and a desire to do what is best for your customer. Most business owners think that this skill set is best utilized in sales, but if you can think about your credit card declines as a back-end sales opportunity, then you will have the proper mindset required to handle this problem effectively.
At Gravy we have found dozens of these people and we do this work day in and day out for businesses all over the country. We know what it takes to close the back door of a business and how to do it with excellence. If you don’t have this person internally, or if you don’t want to hire them internally, then know that we can do this for you and we can do it a fraction of the cost that it would require for you to hire someone full-time. Book a discovery call below to see how we can help you and your business.