Case Study: Output reduces credit card declines and involuntary churn with Recurly
Key results
The challenge
Output, a music software company, entered the subscription market and faced a significant payment decline problem, with credit card decline rates approaching 30%. Failed payments drove involuntary churn and threatened recurring revenue as the company scaled its subscription offering.
The solution
Output implemented Recurly to manage subscription billing and route payments across different gateways to reduce failed transactions. The company adopted Recurly's pause feature as an alternative to cancellation and extended its dunning window from seven to fourteen days.
“We gained visibility into what's happening at the most crucial point in our business: collecting money.”
BZBrian ZarlengaGeneral Manager, Output
The results, in context
After implementing Recurly, Output saw a 45% decrease in credit card declines. The company also reported that 90% of customers came back after being offered Recurly's pause feature, and the longer dunning period reduced involuntary churn.