Study shows the payment experience has massive impact on
revenue, building brand trust and growing customer lifetime
value
SAN
FRANCISCO, May 14, 2024 /PRNewswire/ -- Recurly,
a leader in subscription management and recurring billing
solutions, today announced the release of a commissioned study
conducted by Forrester Consulting on behalf of Recurly. Titled
"The Payment Experience Is Critical To Subscriber Growth And
Retention," the study sounds the alarm on pervasive payment
challenges flatlining consumer subscription growth, with a
staggering 100% of surveyed businesses acknowledging the
detrimental impact of failed payments.
"We know the moment of payment is emotionally charged, but it's
not about the payment itself," says Lina
Tonk, CMO of Recurly. "The most successful businesses know
it's about the consumer experience and the value being provided.
Choosing a strategic and mature billing and payments partner is
imperative to nurturing subscriber relationships and fortifying
subscription growth."
Payment challenges create adverse effects on customer
relationships, brand perception and subscriber value. According to
the Recurly study, issues with payments led to 61% of respondents
reporting revenue loss, 53% observing damaged subscriber
relationships, and 45% witnessing a decline in brand perception.
Only a mere 7% had confidence in their capacity to deliver superior
subscription billing experiences.
With 65% of companies conceding that payment failures decrease
customer lifetime value, the study emphasises the need for
sophisticated monetisation strategies and an enterprise-grade
subscription management platform that prioritises flexibility and
scalability to accelerate growth.
Key recommendations within the Recurly study include:
- Prioritising both acquisition and retention to facilitate
growth in subscription businesses.
- Investing in the right technology platforms that drive
efficient operations and leverage data for insights.
- Adopting advanced churn mitigation techniques to preserve
customer relationships and brand value.
These recommendations were informed based on the responses of
more than 160 people in senior management positions at US and UK
direct-to-consumer companies that participated in the study. The
study highlights that while a significant percentage of
subscription businesses struggle to anticipate and react to
subscriber demands, the industry is poised for explosive growth
when there's an intentional focus on the payment experience.
To tap into the tremendous opportunity for growth through
strategic billing and payment management, access the full
study.
In addition, Recurly's study will be presented at a virtual
event on May 20th at 10 PT | 1 ET | 6
GMT, titled The critical payment experience in consumer
subscriptions: Transform billing and payments into your growth
engine, where attendees will join Jonas Flodh, CPO at Recurly,
Lina Tonk, CMO at Recurly, and guest
speaker Lily Varon, Principal
Analyst at Forrester, as they discuss how optimising billing and
payments can help drive consumer subscription growth. For more
information, visit the events page.
About Recurly
Thousands of innovative companies across digital media,
streaming, publishing, SaaS, education, consumer goods, and
professional services industries rely on Recurly to unlock
transformational growth using subscriptions. Recurly's all-in-one,
integrated platform removes the complexities of automating
subscription billing at scale by enabling teams to manage and
optimise their subscriber lifecycles with ease. Category-defining
companies including Sling, Twitch, BarkBox, FabFitFun, Paramount,
Lucid, and Sprout Social have chosen Recurly to manage billions of
dollars in recurring revenues, future-proof their recurring billing
and revenue management, and recover billions of dollars in lost
revenue due to churn. Founded in 2009, Recurly is based in
San Francisco, with offices in
Boulder and London. For more
information, visit https://recurly.com.
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