Increase Approval Rates & Maximize LTV with Lime Light’s Account Updater
A Q&A session with Adam Pivko, Lime Light ’s Director of Client Success & Anti-fraud. Adam not only manages Lime Light’s merchants’ anti-fraud portfolios, but he and his team advise Lime Light clients on a broad range of business management, risk management, and growth strategies. He shares his first-hand knowledge of the benefits for businesses enabling the Account Updater service.
Q: Why is Account Updater an essential tool for managing a subscription eCommerce business?
With Account Updater enabled you can automatically update customer payment details and increase approval rates on recurring transactions, before rebill cycles. By decreasing accounts lost to churn, you increase the average customer lifetime. This, in turn, increases Lifetime Value (LTV).
Subscription eCommerce business owners often assume their customers are canceling credit cards for corrupt reasons. We frequently hear the satisfied claim, “I only had twenty expired credit card declines, last month.” In reality, those are twenty orders that could potentially get approved and generate additional revenue. Account Updater maximizes ROI by uncovering lost revenue due to credit card declines.
Q: Are there legitimate reasons for credit card declines?
Definitely. Not all customers are trying to escape payment when canceling their credit cards. There are many good reasons why people cancel, replace, upgrade or change their credit card information. For example, in addition to a lost or stolen credit card, Account Updater also works on replacement cards within the same bank or switches from Visa to a Mastercard within the same bank. It also identifies people who upgrade or downgrade different rewards points within the same bank from one credit card to another, as well as plenty of other examples and situations all wrapped into one easy to use, seamless service.
How Does Account Updater Work?
Thanks to deep resources and relationships like our Visa and Mastercard partnership, Lime Light ’s Account Updater analyzes all the different reason codes for credit card updates and automatically collects and links this new card information. This process reduces the risk of lost revenue, ensuring the most up to date and accurate card data is on file before rebill cycles. The result – you’re generating revenue from existing customers, and billing the most up to date information at the time of the transaction.
Why waste time and money after the fact trying to re-engage and get updates from customers when you can proactively manage this potential hassle ahead of time.
Q: What kind of ROI numbers are possible with Account Updater enabled?
On average, Account Updater accurately and efficiently delivers an ROI of nine hundred to one thousand percent.
With these kinds of results, it’s worthwhile for everyone to take advantage of the service. It captures lost revenue; converts hard declines to approvals; extends the length of customer relationships; reduces costs with automatic updates and generates easy to read advanced analytics reports.
Bottomline, Account Updater saves you time and money and eliminates potential hassles for your customers.