Growth Marketing
0

It's no surprise that over 33% of the world’s population shops online, propelling e-commerce into a $6 trillion industry, with projections to reach $8 trillion by 2027. The opportunities are vast, but so are the pitfalls. While potential customers are busy adding items to their online carts, many businesses are still losing substantial revenue.

Most marketers are familiar with the alarming online shopping cart abandonment rate of 70%. Still, fewer are aware that many customers abandon their carts due to declined transactions rather than complicated checkout processes, unexpected shipping costs, or slow delivery times. In fact, 10% of checkout deals are declined, directly affecting your top line revenue with an average potential loss of 5%. However, not all is lost. You’d be surprised how many of these are false card declines (i.e. when payment systems mistakenly reject valid transactions). In this must-read post, we’ll explore why this happens and how you can prevent it from impacting your business.

What are card declines and why do they happen?

Card declines happen when customers cannot complete a payment due to failures in the authorization process. These issues can arise from problems with the card network, payment-processing platform, or credit card issuer. Today, every step of the processing flow declines a transaction. - the issuer, the network, and the gateway. When a charge fails, the merchant is given an error code to the business (and hundreds of error codes). 

Understanding the reasons behind card declines is crucial for eCommerce success.

There are several common causes:

  • Insufficient funds: The most straightforward reason for a card decline is that the customer’s account doesn’t have enough funds to cover the purchase. This is beyond the merchant's control but remains a significant cause of lost sales. 
  • Incorrect card information: Simple errors in entering card details—such as an incorrect number, expiration date, or CVV code—can lead to declines. These mistakes often occur during hurried or distracted checkout processes.
  • Expired cards: Customers sometimes forget to update their card information when their old cards expire. This leads to automatic declines when outdated card details are used.
  • Suspicious activity: Banks and card issuers may decline transactions that appear unusual or potentially fraudulent. This can be particularly common for international transactions or unusually large purchases. While these measures are intended to protect customers, they can also result in legitimate transactions being wrongly declined.
  • Technical glitches: System errors, either on the merchant's end or within the payment gateway, can cause transactions to fail. These issues might stem from server downtime, software bugs, or connectivity problems.
  • Outdated customer information: Changes in a customer's address or phone number that aren’t updated in the bank’s records can lead to mismatches during the verification process, resulting in declines.

Why it’s important to track your card decline rate

Despite the attention given to cart abandonment ratios, the importance of tracking card decline rates often goes overlooked. Some might look into payment acceptance rates that indicate the proportion of revenue captured compared to potential untapped revenue. However, they still can’t fully grasp the impact of such a decline on their business. 

By staying vigilant and proactive in monitoring decline rates, you can ensure a smoother payment process for your customers while maximizing your business's financial performance.  

Here’s why it’s crucial you track your card declines:

  • Revenue optimization: Monitoring decline rates helps identify and address issues in payment processes, optimizing flow to capture potential revenue loss.
    Just about every marketing KPI is affected by conversion fails including your top line Impact, cost of acquisition (CAC), reacquisition costs, LTV, and conversion-to-paid rate/monetization rate. 
  • Customer experience: High decline rates frustrate customers, leading to abandoned purchases and eroded trust. Tracking enables proactive issue resolution, enhancing satisfaction and loyalty. 
  • Fraud prevention: Sudden increases in decline rates may signal fraud. Tracking helps detect suspicious trends early, allowing for additional security measures.
  • Operational efficiency: High decline rates strain resources, increasing support inquiries and manual interventions. Tracking enables streamlining of operations and resource allocation.
  • Strategic decision-making: Decline data provides insights into payment behavior and preferences, informing decisions on methods, fraud prevention, and customer engagement for business growth.

Recovering more than 30% of your false card declines 

Though it seems like a clear win, it might come as a surprise that a customer's click on the "pay" button doesn't always guarantee a successful conversion. Within the realm of eCommerce, false card declines present a formidable obstacle for businesses, affecting acceptance rates and overall revenue, while also resulting in disappointed customers who may seek alternatives from competitors to complete their purchase.

Bounce empowers you to identify false card declines swiftly and efficiently, recovering more than 30% of them in real-time. This seamless process ensures that you not only maximize revenue potential but also minimize losses effectively.

Growth Marketing
0

While it's common to monitor metrics like cart abandonment rates, assessing your card decline ratio is often overlooked.

Interestingly, research shows that up to 50% of card declines are associated with valid transactions, representing significant revenue losses. These declines not only directly reduce your revenue but also adversely affect other critical KPIs such as Customer Acquisition Cost (CAC), Lifetime Value (LTV), retargeting costs, and retention rates.

Introducing Bounce’s hidden losses estimator

By utilizing our estimator, you can gain a comprehensive understanding of your current card decline losses and their broader implications on your KPIs. In just a few steps, you will obtain valuable insights that can help you mitigate these losses and optimize your business performance.

The importance of tracking your card decline rate

While businesses frequently monitor cart abandonment ratios, the critical nature of tracking card decline rates often goes unnoticed. Payment acceptance rates might offer a glimpse into the captured revenue versus potential untapped revenue, but they don't fully illustrate the profound impact card declines have on overall business health.

Keeping a close eye on your card decline metric is crucial. Here’s why:

  • Revenue recovery: Up to 50% of card declines are valid transactions, representing significant revenue loss. Addressing these can directly boost your bottom line.
  •  Impact on marketing KPIs: Just about every marketing KPI is affected by conversion fails, including top-line impact, cost of acquisition (CAC), retargeting costs, lifetime value (LTV), and conversion-to-paid rate/monetization rate. By reducing decline rates, you can positively influence these metrics.
  • Fraud detection: Sudden spikes in decline rates can indicate potential fraud. Early detection allows you to implement security measures, protecting your business from substantial losses.
  • Informed strategy: Data on card declines provides insights into payment behaviors, guiding strategic decisions on payment options, fraud prevention, and customer engagement, ultimately driving business growth.

How to use Bounce’s hidden losses estimator

It’s easy as 1,2,3! 

Visit this link and enter your email address to get started. We’ll then ask you a bit about your business and what you sell (apps, books, cosmetics, cleaning supplies, household goods, legal services, etc). Choose what best describes your business and then pick out your primary market location. Write down your annual revenue from online sales. Write down the percentage of the revenue that comes from international sales. If you sell internationally, tell us where you sell (up to 5 countries) and let us know whether you’re selling to consumers or businesses. We’ll guide you through just a few more questions to get you to the finish line! There you’ll learn how much money you’re losing to card declines and how much can be saved. Trust us- you won’t believe the numbers! 

Staying vigilant in monitoring card decline rates is not just about improving payment processes; it's about securing your business's financial health and ensuring long-term growth. Start tracking today to unlock these benefits and drive your business forward.

Try out our hidden losses estimator now!

Growth Marketing
0

Consider how visitors navigate through your website before making a purchase. They typically start on the homepage, browse between the different products, add items to their cart, and then proceed to complete the purchase at checkout. However, this journey is rarely smooth. In this blog post, you'll discover exactly where and how to eliminate any potential or existing marketing funnel friction for your B2C and B2Ds all the way to checkout.

Limit landing page distractions 

The first point in both B2C and B2D marketing funnel friction is the landing page experience. A single issue on the landing page can cause visitors to leave prematurely. In fact 53% of visitors will abandon a page after only three seconds. This happens if visitors can’t find what they’re looking for, the loading time is too slow, or if the site has functional or usability problems.

Ensuring a seamless and user-friendly landing page experience is crucial to keeping customers engaged.

5 fundamentals of a spot-on landing page: 

  1. Create a headline that demands attention: Craft a headline that resonates with the target audience's needs and desires, using powerful action words and emotionally charged language.
  2. Use a hero image to bring your offers to life: Incorporate a visually appealing hero image that grabs visitors' attention and encourages engagement, while ensuring fast loading speeds.
  3. Create calls to action that inspire action: Design clear and persuasive calls to action (CTAs) that represent the conversion goal, personalized to the audience and campaign objectives.
  4. Provide form fields that make conversion easy: Simplify the conversion process by minimizing form fields to only essential information, ensuring a user-friendly 
  5. Offer social proofs to build trust: Utilize social proofs such as customer reviews, ratings, and testimonials to establish credibility and trust with potential customers, ultimately boosting conversion rates.

Simplify product navigation:

How you present and organize the products and offerings on your site can make-or-break your business. If your website has poor navigation, limited search functionality, or a cluttered layout, customers may struggle to discover the products that interest them, thus causing a whole lot of friction during the product discovery process. This can lead to frustration and abandonment of the shopping process, and of course a failure to arrive at checkout. 

Good design, coupled with intelligent and robust catalog search capabilities, hold the power to eliminate a major friction or pain point from the marketing funnel.

5 key product discovery strategies to improve navigation 

  1. High-quality images/videos: Provide multiple images/videos for each product to showcase its features.
  2. Advanced filtering/sorting: Offer robust options to narrow down searches by price, size, color, etc.
  3. Personalized recommendations: Use AI for tailored product suggestions based on user behavior.
  4. Improved search: Implement features like autocomplete and predictive search for quicker results.
  5. Interactive previews: Allow users to view essential product details without leaving the page.

Make trust an absolute must 

The inability to convey trust just might be costing you a lot of revenue. Communicating trust or adding "trust elements" is crucial in online transactions, especially in the realm of online shopping where you're betting on the fact that a person will have a good enough experience that they'll gladly go to checkout, hand you their credit card details, and pay you money. 

While it is especially important at the payment stage, if a potential customer does not feel a sense of trust, this can create major friction in the marketing funnel, it will be very hard to reel them back in again. 

3 key elements to boost trust 

  1. Secure payment options: Offering secure payment methods such as credit card processing, PayPal, or other trusted payment gateways instills confidence in customers that their financial information will be protected.
  2. Customer reviews and testimonials: Displaying genuine customer reviews and testimonials provides social proof of the quality and reliability of your products or services, helping to build trust with potential customers.
  3. Clear return and refund policies: Transparent and easy-to-understand return and refund policies reassure customers that they can shop with confidence, knowing that they have options in case they are not satisfied with their purchase.

Ensure product information accuracy

Providing clear and detailed product information is essential for guiding customers through the purchasing decision. If customers can't find necessary information such as product specifications, pricing, or availability, they may hesitate to complete their purchase. High-quality images, product reviews, and comparison tools can help customers feel confident in their decision.

3 strategies to maintain product information accuracy

  1. Regular updates: Ensure that product details such as pricing, availability, and specifications are regularly updated to reflect any changes accurately.
  2. Quality control measures: Implement processes to verify the accuracy of product information before it is published on your website or presented to customers.
  3. Customer feedback: Solicit feedback from customers regarding the accuracy and completeness of product information. This can help identify any discrepancies or areas for improvement.

Simplify the checkout process 

A lengthy and intricate checkout process often leads to customers abandoning their payment. Each extra step and form field prolongs the payment procedure and adds to the difficulty. Since customers prefer a straightforward and convenient process, any additional steps can negatively impact your user experience. 

Once customers have selected their desired products, the next marketing funnel friction point can occur when trying to add items to their cart. Complicated checkout processes, unexpected fees, or technical issues can deter customers from completing their purchase. It's important to streamline the process of adding items to the cart and provide transparency in pricing to minimize friction.

  1. Streamline form fields: Reduce the number of required fields to only essential information, such as name, shipping address, and payment details.
  2. Implement guest checkout: Allow customers to complete their purchase without creating an account, reducing friction for first-time buyers.
  3. Offer multiple payment options: Provide various payment methods, including credit/debit cards, digital wallets, and alternative payment solutions, catering to diverse customer preferences.
  4. Auto-fill and save information: Enable auto-fill features to populate form fields with saved information and offer the option to save details for future purchases, saving time and effort for returning customers.

For more tips, check out this article where we explore the different ways you can improve your checkout conversion rate.

Make sure the payment was completed

Even after your customer clicks the "pay" button, you’re still in danger of a lost deal. Many promising transactions fail due to card declines, with an average of 10% of checkout purchases failing at this crucial stage. Merchants often overlook this issue, but it can result in significant revenue loss and wasted marketing expenses. 

Bounce helps you detect false card declines and recover over 30% of them seamlessly and in real time, ensuring you maximize revenue and minimize losses.

Growth Marketing
0

A good B2C marketer tries to win over customers. But a great one wins over customers while hitting company goals, aka marketing KPIs (key performance indicators). 

Setting targets and strategies that support a company’s long and short-term objectives is the most important part of a B2C marketer's job. In this blog, we'll cover the key KPIs every B2C marketer should know to boost their business.

Understanding the marketing funnel

Marketing KPIs exist within the marketing funnel. To understand any KPI, one needs to be familiar with the marketing funnel as a whole. This is essentially a model that visualizes the path customers take from brand awareness to conversion (purchase). 

While there is no single marketing funnel that everyone agrees on, there are some basic stages that remain the same.

  1. Awareness: Introducing consumers to your brand and keeping it top of mind.
  2. Consideration: Educating consumers about your brand and its unique value proposition.
  3. Conversion: Convincing consumers to make a purchase decision.
  4. Loyalty: Building long-term relationships and turning customers into advocates.

Within the B2C sphere, the marketing funnel can also be referred to as the Purchase Funnel. Essentially this outlines the buyer's journey within a website, from the product page to adding items to the cart, and ultimately checkout.

Conversion rate

This is probably the most important metric or marketing KPI for measuring performance. Conversion rate records the percentage of users who have completed a desired action. 

It helps assess if a certain action or campaign was successful or not and indicates what actions need to be taken accordingly. 

Marketers or growth specialists can define their own different conversion rates; For example - one could measure the traffic to cart conversion rate (customers that arrived at a site and placed a product in the cart), or the level of traffic to a newsletter signup (the amount of visitors that ended up subscribing to a newsletter).

Traffic to Cart Conversion Rate: This measures the percentage of website visitors who add items to their shopping cart. It helps assess the effectiveness of product visibility, website design, and the ease of adding items to the cart.

Cart to Purchase Conversion Rate: This metric indicates the percentage of visitors who complete a purchase after adding items to their cart. It reflects the persuasiveness of product descriptions, pricing, checkout process, and overall user experience.

Traffic to Newsletter Signup Conversion Rate: This measures the percentage of website visitors who subscribe to the company's newsletter. It gauges the appeal of the content, incentives offered for signing up, and the placement and visibility of newsletter signup prompts.

Conversion rates are calculated by taking the total number of users who 'convert' (for example, by clicking on an advertisement), dividing it by the overall size of the audience and converting that figure into a percentage.

For example, to calculate conversion rate of visitors > free trial, you need to divide the number of free trial signups by the total number of visitors. So , if you have 500 visitors to a free trial campaign landing page, and 45 of those visitors subscribe to a free trial, you have a conversion rate of 45/500, or 9%.

Checkout conversion rate 

A subsection of conversion rate, and a major component in e-commerce businesses, this B2C KPI marketing metric refers to how many leads ‘convert’ into actual paying customers. This can also be referred to as macro-conversion, whereas a micro-conversion can refer to general engagement with the business (as mentioned above.)

Return on Investment (ROI)

While there are creative ways to cut costs and stay resourceful, marketing campaigns cost money, especially large ones aimed at attracting a lot of eyeballs. This is why ROI (return on investment) is crucial to your overall marketing costs and budget. ROI is the biggest determinant of cost allocation, with the goal being to get the most revenue possible with the least amount of investment.

Calculate ROI: Divide Net Profit by Cost of Investment, then multiply by 100%.

For example, if you invest $10,000 and generate $15,000 in revenue, with a net profit of $5,000, you would need to divide 5,000 by 10,000 and turn it into percentage - 50%.

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is the total expense of marketing to get a single customer. It covers the costs of marketing campaigns and other related expenses necessary to attract new customers, needless to say, it's important.

The CAC formula is calculated by dividing the total marketing costs by the number of customers acquired during the period. 

For instance, if your monthly marketing expenditure amounts to $5000 and you acquire 1000 new customers, your CAC would be $5.

AOV (Average Order Value)

A crucial metric within the e-commerce industry, the average order value (AOV) measures the average total of every order placed with a merchant over a defined period of time and is a key factor in business decisions for online stores. It is calculated by dividing the total revenue by the total number of orders.

To find the Average Order Value (AOV), you divide the total revenue by the number of orders placed. For example, if you made $4000 from 160 orders this month, your AOV is $25.

Calculation:

$4000 / 160 = $25

Lifetime Value (CLV or LTV)

Customer Lifetime Value (CLV or LTV) is a metric that represents the total revenue a business can expect from a single customer over the entire duration of their relationship. It's a crucial measure for understanding the long-term value that each customer brings to a business. CLV takes into account not only the initial purchase but also the potential for repeat purchases and the overall loyalty of the customer. The customer lifetime value formula is:

Customer Lifetime Value = Customer Value x Average Customer Lifespan. 

This gives you the revenue expected from an average customer over their time spent with your business.

Churn Rate and Retention Rate:

This time a pair of crucial B2C marketing KPIS: Churn Rate and Retention Rate are two key performance indicators (KPIs) used to measure customer loyalty and engagement.

Churn Rate: 

This metric represents the percentage of customers who discontinue using a product or service within a specific period of time. It reflects the rate at which customers "churn out" from a business.

The formula to calculate churn rate is as follows: Lost Customers ÷ Total Customers at the Start of Time Period x 100.

For instance, if your business had 250 customers at the beginning of the month and lost 10 customers by the end, you would divide 10 by 250. The result is 0.04. Then, multiply 0.04 by 100, which equals a 4% monthly churn rate.

Retention Rate:

This metric indicates the percentage of customers who continue to use a product or service over a certain period of time. It measures the ability of a business to retain its existing customers and prevent them from churning.

The formula for calculating retention rate is: ((Number of Customers at the End of a Period - Number of New Customers Acquired During that Period) ÷ Number of Customers at the Start of the Period)) x 100.

For example, if your business started with 500 customers, acquired 100 new customers, and ended after a certain period of time with 550 customers, the retention rate would be: (550 - 100) ÷ 500) x 100 = (450 ÷ 500) x 100 = 90%.

Tracking traffic source and volume

Web traffic sources are the various ways people arrive at a website.They give us clues about where our visitors come from, the volume of traffic, and how they discovered the content. Monitoring these sources and assessing the amount of traffic helps manage your online presence and decide where to invest resources wisely.

Typically, these sources include:

  • Direct Traffic: Folks who type our website URL directly into their browser or use a bookmark.
  • Organic Search: Those who stumble upon our site through search engine results after typing in relevant keywords.
  • Referral Traffic: Visitors who click on links from other websites, blogs, or social media platforms.
  • Social Media Traffic: People who find our site via links shared on social media platforms like Facebook, Twitter, and Instagram.
  • Paid Search: Visitors who click on ads displayed in search engine results.
  • Paid social: Users who click on ads or promoted content on social media platforms.
  • Email Marketing: People who click on links in emails or newsletters sent by us or our affiliates.
  • Display Advertising: Visitors who click on banner ads or display ads placed on other websites.

An example taken from hubspot traffic sources report

Click-through Rate (CTR) 

Click-through rate refers to the marketing metric that measures how often people click on a link, ad, email, or any piece of content in general. This tells us how successful the piece of content was in capturing a person's attention. The higher the click-through rate, the more successful the ad has been in generating interest. 

It's important to keep in mind that these numbers are typically low when referring to ads, as many internet users today have developed ad fatigue (the average American sees somewhere in the region of 4,000 to 10,000 ads every day.) A typical click-through rate may be only about two users per 1,000 views (or impressions), or 0.2%.

Email Open Rate

If your strategy involves email marketing, understanding your Email Open Rate KPI is crucial. This tells you how well your email marketing is working as it indicates the percentage of people who open the emails you send. Many digital marketers love to focus on the size of their email list, but what use is a huge list if no one's clicking? A higher open rate means your subject lines are grabbing attention, while a lower one might mean they need some tweaking.

Which KPIs do I establish?

When establishing which marketing KPIs for you are most important to your ecommerce store or B2C company, it's essential to look at the bigger picture and consider how different KPIs interact with each other. For example, while a high conversion rate may seem great, if the customer acquisition cost is too high, it could significantly impact your overall ROI. In this instance, you would ask yourself why the CAC is higher than usual or why your top line is low while conversion rates seem to remain stable.

By analyzing multiple KPIs together, you can gain a more comprehensive understanding of the performance of your marketing efforts and make better decisions.

The KPIs measured can be adjusted periodically based on your marketing priorities and the current challenges in your sales funnel. For instance, after launching a service or product, you may prioritize driving traffic to it. Once you achieve this, you can then shift your focus to converting the generated traffic. After successfully converting leads, you can redirect your focus to metrics like Lifetime Value (LTV) or the percentage of repeat customers, and so forth.

In conclusion, investing time and resources into understanding and leveraging B2C KPIs is essential for staying ahead in the dynamic realm of marketing and achieving sustainable success in today's B2C landscape.

Growth Marketing
0

Ever wondered why your online shoppers are ditching their carts at checkout? If you answered yes, you might be in the middle of a checkout conversion problem.

In other words, visitors come to your website to make a purchase, but leave before completing their purchase. This phenomenon is all too common in e-commerce, with abandoned cart rates having skyrocketed to 70% in 2023.

Fortunately, there are several effective tactics businesses can employ to tackle this problem head-on and reclaim your potential customers. In this blog, we'll delve into the top ways you can boost checkout conversion rates and up your revenue.

But first, why are people dropping out?  

There are many reasons why people visit your online store, make their way through a purchase process and then at the last minute totally change their minds. Here's a list of the typical reasons why you’re not getting those wins. 

  • Complicated checkout process: A lengthy or convoluted checkout process with too many steps or form fields can discourage customers from completing their purchase.
  • Account creation walls: Requiring users to register or create an account before checkout can be a barrier, especially for first-time visitors.
  • Lack of preferred payment option: If your store doesn't offer the payment method preferred by a customer, they may abandon their cart rather than compromise on payment security or convenience.
  • Lack of trust in website security: Concerns about the security of personal and financial information can cause customers to abandon their carts if they don't trust the website's security measures.
  • Unable to save the items for later: Some customers might wish to save items for future purchase or comparison, leading them to abandon their carts temporarily.
  • Website errors: Technical glitches or slow loading times can frustrate visitors and lead them to abandon their carts.

Top ways to improve your checkout conversions rate 

1. Simplify the checkout process

People appreciate a clear and intuitive buying process. However, many businesses fail to deliver on this. To increase conversion rates, aim to make the journey to checkout as simple as possible without unnecessary steps, forms, or pop-ups. To create a simplest checkout process: be mindful of general design and layout, and  keep the journey as quick (and painless) as possible. 

2. Offer guest checkout

As mentioned above, there should be minimal steps before checkout. A great technique to achieve this is by offering Guest Checkout options. This allows potential shoppers to bypass account creation and purchase items directly, thereby potentially preventing a 35% drop in transactions. Shoppers provide their information for their order, such as their name, shipping address, and payment details, without wasting their precious time creating an account on your website.

3. Optimize for mobile

Most folks these days shop on their mobile phones - 76% of adults (US), to be exact. If you're running an ecommerce store, you'd best make sure that you adjust mobile navigation so that your online store is fully optimized for the mobile experience. Key actions you can take include ensuring a highly responsive design, providing an optimal mobile view, and integrating payment options like Apple Pay, Google Pay, and PayPal, allowing users to complete their purchases with a single touch or click.

4. Display clear shipping fees

If you have global customers shopping from your online store, they probably want to see shipping costs before they click the pay button. Shipping costs can significantly affect prices, and purchasing an item without shipping costs can appear quite different at checkout. To avoid misleading customers, it's best to display clear shipping costs and available payment methods clearly on the checkout page. Doing this helps shoppers make better-informed decisions, ensures transparent pricing, and even boosts trust.

5. Communicate trust

Customers want to feel safe and secure when making purchases online. This includes having a reputable-looking website and displaying various badges for payment security, data protection, and purchase policies. Creating a trustworthy relationship with your customers boosts conversion rates. In fact, statistics show that 35% of potential buyers abandon a site without a security badge. These trust signals reassure customers that their information is safe and their purchase is protected.

6. Offer multiple payment options

Different customers have various preferences when it comes to payment methods. The Baymard Institute found that 6% of cart abandonments occur due to a lack of preferred payment methods. With more options, paying becomes more convenient, increasing the likelihood of completing a purchase. By offering multiple payment options, you make it easier for customers to pay in a way that suits their preferences and needs.

7. Use abandoned cart emails

Implementing an abandoned cart marketing strategy is crucial. A great way to do this is by  re-engaging customers through "abandoned cart emails." Setting up emails gently reminds customers about their abandoned carts, highlights the items left behind, and utilizes personalized tactics tailored to reflect their buyer interests. Additionally, offering exclusive discounts or special offers can entice customers to return and seal the deal.

8. Reduce card decline rates

Having your customer click on the "pay" button can still turn out to be a lost conversion. Countless good deals are lost due to card declines - in fact, an average of 10% of checkout purchases get thrown out right at this very last conversion stage. This problem often goes unnoticed by merchants, but it can lead to millions of dollars lost for your business, not to mention the wasted marketing costs. With Bounce, your ecommerce business can identify false card declines and recover over 30% of them in real time, ensuring you capture valuable revenue opportunities and minimize losses effectively.

Optimize checkout for success

Whether it’s confusing web design, or false card declines, improving your checkout process is vital for ecommerce success. With many factors leading to cart abandonment, streamlining the online checkout is crucial for retaining customers, building loyalty, and boosting revenue. By prioritizing checkout optimization, businesses can seamlessly guide customers through the buying journey and resolve common pain points that maximize value from your shoppers.

Use Cases
0

End of a free trial charges and their effect on your KPIs 

In today's subscription economy, numerous businesses offer free trial subscriptions to convert potential leads into paying customers. Companies offer users a free trial of their service or product, and in exchange, the user provides their credit card details. 

By capturing the user's payment information at registration, the company can ensure their users are high-intent, with a valid means of payment.

Yet despite this precaution, less than 50% of those free trial users are shown to convert to paying customers. According to our data, 20% of free trial churn is, in fact, due to payment decline. Of those end-of-trial payment declines, a significant part are, in fact, valid subscribers who experienced a false failed transaction. These are exactly the customers you are trying to onboard who enjoyed your free trial and wanted to move forward.  

When recovered, they can also help your business growth soar!

Growth impact: Free-to-paid user business impact 

End-of-trial transaction failures have an enormous negative impact on business revenue. And not just top-of-the-line revenue due to the user's final failure to convert. 

The impact of failed free trial conversions trickles down to just about every marketing KPI. 

Let's have a look:

  • Top-line Impact: Failed free-to-paid user conversion transactions directly impact your total revenue, leading to a loss of potential deals after the free trial.
  • Cost of Acquisition (CAC): Despite investing time and resources to get customers on board for their free trial, and having the customer reach the payment phase without canceling, a failed payment transaction means restarting this very challenging customer acquisition process, as well as an increased CAC for those customers you did convert.
  • Reacquisition Costs: When you are not able to charge your customers after they complete the free trial, you will need to work hard at getting them back to using your service, in many cases by offering them a significant discount or additional free trial. 
  • LTV: The denied payment process will affect the rate of your recurring customers and the total LTV, as these customers will stop the subscription cycle and not reach the next renewal phase, which is when you are actually starting to benefit from their payment. 
  • Conversion-to-paid Rate / Monetization rate: Customer loss post-free trial due to payment issues has a direct impact on your most important KPI - conversion! You want to see as many of your free trial customers converting into paying ones, demonstrating that they like your p[product or service and are willing to pay for it.

So how can you turn those conversion fails into absolute revenue wins?

Bouncing up free-to-paid customer conversions

Bounce helps grow business revenue by recovering failed trial conversions.

Our AI machine learning algorithms analyze millions of data points to identify valid transactions that were wrongly flagged and approve them. The transactions are saved, and the customer can use your service just like before, enjoying  a smooth payment experience. All in real-time, with zero risk for the seller.

Bounce can also increase end-of-free trial conversions by helping companies identify users that you will not be able to convert due to payment issues right at registration. 

Bounce Effect: 4% top-line revenue uplift

Our data reveals that customers who implemented Bounce to optimize end-of-free trial conversions benefited from an immediate 4% increase in top-line revenue. CAC, LTV, and funnel conversion rates - also drastically improved as well.

Here’s how Bounce helps customers capture lost free-to-paid conversion revenue and how it impacts their business. 

Use Cases
0

Onboarding new subscribers takes work. So does maximizing revenue.
Whether you're building and marketing a recurring SaaS subscription, digital service, or consumer goods, it requires a solid team effort.
Much has been written about how to drive a company's marketing wins and increase sales.
But what about recovering subscription signup losses?

Marketing, customer success and business execs understand the painstaking effort involved in guiding potential consumers through the funnel and investing time and resources to garner subscription signups.
Which is why nothing is more frustrating than watching those potential consumers arrive at checkout, and hand over their credit card details, only to have their payment declined. Potential subscription is lost.
It’s disheartening, and in many cases, it can be avoided.

The hidden cost of failed subscription signup 

Here's a fact: 15% of potential subscribers get rejected at signup due to card declines.

Simply put, for every 100 customers that enter their credit card details and hit “Subscribe”, only 85 will become paying subscribers.
That’s an astounding financial loss at the moment of conversion, especially when considering this next fact.

More than half of signup payment rejections are in fact valid subscribers. 

Of the 15% of subscribers that were rejected at signup, more than half (!) were in fact, valid consumers.
They were blocked or flagged and couldn’t complete the purchase, although you would be happy to have them as your subscribers.
This could be avoided and overturned with Bounce, which can take up to 30% of your signup declines and turn them into absolute wins.

Recovering lost revenue with Bounce

How does that translate into lost revenue?
It's about 5% of your top line.
5% of revenue, which, if not for a payment failure, would be part of your company's core revenue.

At Bounce, we help merchants recover failed subscription signups by seamlessly identifying and approving them in real time.
Our AI-powered engine uses machine learning to analyze tens of thousands of data points, identifying the good deals that were wrongly flagged as bad and instantly approving them.
With our integrated subscription win-back policy, valid users are auto-approved at the subscription checkout.

No wait time. No checkout friction.  No-risk. Your lost signup subscribers  are saved and enjoy a flawless signup experience.

From a company growth perspective, the wins don’t just stop at checkout.
They trickle down to many other areas, affecting a wide host of KPIs. Let’s have a look:

Company growth: the Bounce impact

  • Top Line Impact - Losing deals during subscription signup means less total revenue. These deals should’ve been yours.
  • Cost of Acquisition (CAC) - After investing in acquiring a new subscriber, facing a failed signup checkout means starting over and increasing the Cost of Acquisition. Less conversions -> higher CAC.
  • Retargeting Expenditure - Once these customers are declined, they are not going to come back easily. A failed subscription signup will result in spending additional marketing funds on retargeting campaigns to bring your consumers back.
  • LTV (Lifetime Value) impact - Negative experiences at subscription signup checkout directly decrease the overall Lifetime Value (LTV) of customers, as they will probably not come back, and will, of course, not reach the next payment cycle.
  • Conversion Rates Setback - Losing customers during subscription signup means lower checkout-to-paid conversion.
  • Purchase Size - Rejections at signup may lead prospects to rethink the size of their purchase. Even if they complete their transaction with another payment method, they’re far more likely to opt for a lower-priced product or service.
Use Cases
0

The authentication process and its effect on your KPIs

Card authentication declines happen more often than you think. 

At Bounce, we wanted to get to the bottom of it.
While mapping hidden and obscure spots of the payments industry, we uncovered something quite incredible -
up to 30% of online credit card authentication processes are denied.

This scenario frequently occurs when you allow your customer to try the product or service before paying for it. Within the context of free trial subscriptions and sign-ups, failed card authentication is a common occurrence.

During a trial sign-up, a merchant authenticates the user's card while allowing them to try out the product or service before payment.
Sadly, due to false payment declines, the merchant can inadvertently block the customer during the authentication step. This occurs after the customer has made the crucial decision about your product, provided the payment details, and all that remains is for them to complete the authentication process.
But it's precisely at this critical moment that you are losing them, and possibly for good.

The authentication process is both an opportunity and a challenge.
If the customer fails the authentication for no good reason, it will tarnish the customer's experience.

On the other hand, when done right, authentication gives the seller an opportunity to bypass certain customers who are less likely to become paying customers, thereby increasing conversion and top line.
Essentially, this process  increases the percentage of users that ultimately become paying customers.

Over the years we learned that many companies are not even aware of how many good deals they’re losing due un-authentication rates.
Many don’t see how common the problem is and how it affects a business’s performance and the marketing team’s KPIs:

  • Top-line - False authentication declines lead to lost customers, deals, and loss in revenue.
  • Cost of Acquisition (CAC) - Getting a successful user registration is a massive step, especially after all the marketing resources you spent on getting them there. An unauthenticated credit card deal puts you in a position to retarget and repeat the process, causing your CAC to spike.
  • LTV, retention and repeat customers - The negative effect of declined authorization process has a clear impact on LTV. The customer’s bad experience will result in them not coming back. In the case of free trial, they will clearly not turn into recurring revenue, as they are not even starting their journey with you. 
  • Conversion rates - Losing customers during the authorization process not only affects the specific authentication conversion rates but hinders the whole conversion - Leads/ Visitors > Free trial > customers.

How Bounce improves authentication rates

Here at Bounce, we've learned to identify false authentication authorization declines,
enabling us to save an average of 20% of deals that were wrongly rejected.
This results in a 7% increase in the total number of users progressing to the next stage of your funnel.

Our ML algorithm quickly identifies and approves good deals in real-time, saving the transaction and ensuring users can smoothly transition to become paying customers after authentication, without any roadblocks. 

By perfecting the authentication process, you can filter out unwanted leads and ensure you only allow leads with conversion potential to move forward.
It’s about balance - you need to make sure these good users are moving forward, while identifying those that are not going to become paying ones.

Unlike other marketing, growth or optimization tools, Bounce doesn’t require any additional budget or extra work after implementation.
There is no customization, monitoring, or any additional set up needed - All you have to do is relax and enjoy the absolute wins.

Use Cases
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Checkout fail. It's a familiar pain for marketers.
After investing thousands of dollars in targeting and re-targeting, the excitement of a potential customer placing an order turns into frustration when they fail to convert into a paying customer.
And in many of those cases, it’s due to payment decline.

The hidden cost of checkout churn

Did you know? More than 10% of checkout purchases get thrown out of the funnel right at the conversion stage due to credit card declines. The user enters his credit card number, hits “purchase”, and receives a failed transaction notice.

Those failed transactions can translate into millions of $ lost for your business, not including the lost marketing costs.

Here's another nugget: 30% of failed checkouts can actually be recovered into a closed deal.
With Bounce’s AI-based payment solution, companies can save up to millions of dollars annually, gaining a higher return on their marketing efforts and lifting their top line by 5%!
The cumulative year-over-year impact of recovering lost checkouts is enormous.

It also goes way beyond immediate top-line revenue.

The fuller picture: understanding company growth impact

Let's explore how failed checkouts  influence your business's growth and performance:

  • Top-line Impact: Lost deals directly dent total revenue, affecting company growth.
  • Customer Acquisition Cost (CAC): Each lost deal not only hampers revenue but also resets the clock on acquiring new customers and increasing your average CAC.
  • Retargeting Costs: A failed checkout experience is likely to prompt increased spending on retargeting campaigns to re-engage users and target new potential ones.
  • LTV and Repeat Customers: A declined transaction at checkout leads to a bad user experience, and by that, you risk losing your customer permanently, impacting both the lifetime value (LTV) and the rate of repeat business.
  • Conversion Rates:  Checkout failures directly affect checkout conversion rates and the success of the overall marketing funnel, with fewer leads and visitors that turn into customers and repeat customers.
  • Purchase Size: Customers facing declined transactions tend to abandon their purchase initiative entirely. Of the few that do retry, they will often revisit their cart and remove purchases, resulting in a lower overall purchase value.

Unlocking lost checkout revenue with Bounce

Bounce helps companies prevent revenue loss and all other negative impacts of declined payments.
Our payment recovery platform uses ML to analyze millions of data points, identifying which checkout declines are valid and which ones should not have been declined. Our solution recovers over 30% of payment declines, in real time. 

Bounce seamlessly integrates into your existing checkout process, providing the user with a positive and smooth experience when identified as valid. We’re so sure of our data that the service is risk-free. Your customers enjoy a better checkout experience, and you enjoy a higher return on your marketing efforts.

Here’s how our checkout recovery helps our customers recover tens of thousands of dollars in lost checkout revenue.

Success Stories
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Simply (formerly JoyTune) is a global subscription service that reinvented how people discover, learn, and share creative hobbies. The company’s mission is to spark joy and creativity by empowering people to “fall in love with new creative hobbies''. With millions of learners in over 180 countries and fast revenue growth, Simply has become a global subscription service. Yet despite their fantastic success, their conversion funnel had an issue: a large percentage of failed Piano app subscription signups were failing to convert.

20% of users that already downloaded the app, and tried to sign up,  pay and use the app, were declined due to a payment issue. 

While the growth, marketing and UX teams were hard at work driving new subscription sign-ups, hundreds of potential valid subscribers were being rejected monthly.

That's when Roie Shiloah, Head of Growth, started the process with Bounce.

"We knew we were losing tens of thousands of dollars in potential revenue each month. We needed a trustworthy solution to optimize the signup subscription process."

We worked hand-in-hand with Roie and the Simply team to understand the lifecycle of their subscribers, the payment issues encountered, and how to optimize their sign up processes.

We then implemented our ML-powered solution to identify incorrectly flagged signup subscribers. Users that previously would have been rejected at sign up now enjoy a seamless subscription experience, and the Simply team’s top-line revenue enjoys a marked boost.

But the process didn’t stop there…

Bounce transforms Simply's free-to-paid conversions

To garner interest and gain new subscribers, Simply offers Piano registrants a free trial of their app. Simply users register and provide their credit card details to begin their free trial. When the trial period is over, Simply then processes their credit card and converts them into a paying user. If for whatever reason the payment transaction failed, Simply would then retry the charge using one of their payment provider’s existing solutions.

The challenge:

Even after retrying to charge the failed transactions, 30% of Simply’s free trials were still being declined. The marketing team had worked so hard looking for learners with passion to learn Piano, nurture their interest with compelling retargeting ads, drive them to Simply’s sign-up page, and convert them into free trial learners, all the while ensuring a fantastic onboarding experience and the ultimate in customer care. 

But then, at the pivotal moment of conversion from free-trial to loyal brand learners, Simply’s learners were experiencing false declines. ROI lost. Marketing investment wasted. Revenue crushed. The results were seriously hampering the company's growth efforts.

The solution:

We analyzed thousands of failed end-of-trial payment transactions to understand which, if any, could be recovered. We discovered that 5% of the deals that were not recovered by Simply’s current process can still be recovered and converted by Bounce. That means a 2% lift to their free trial conversion.

Given the large number of free trial users that sign up for Simply each month, the recovered free trial conversion translates into a grand additional user revenue. 

“Bounce is a ‘growth secret’ - our total signups revenues grew by 5% and our end-of-trial charges/renewals grew by 2%. The uplift is immediate, requires zero risk or budget, and doesn’t require any work after implementation.”

The Simply team feels safe to consult us with any questions or problems they might have, and we at Bounce learn a great deal from this collaboration and develop new ways of problem-solving. We are always brainstorming new ways to increase Simply’s revenue and conversion rates, amplifying the growth impact of our partnership.

“Bounce transparency enables complete trust. We recommended Bounce to colleagues from other b2c companies.”
Success Stories
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Scale is a California based, tech-driven company. They build next-generation health, wellness education, and products that address some of the world's most common health issues. They sell their products online as a subscription base or as a one off purchase and have a checkout process in place.

They knew they had challenges around checkout and subscription conversion and were hoping to find a solution to mitigate that.

We partnered with Hannah Blum, Head of Marketing Strategy, and Chris (Christapor) Arzoumanian, Senior growth product marketing manager, two industry experts.  

Diving into Scale’s processes

Scale offers various types of supplements, in 5 different brands, both one-time checkouts and subscription refills. When reviewing Scale’s system, we ran a comprehensive analysis of their payments, to see which failed payments could be saved. Through our ML system, we found that 20%-30% of their customers were being wrongly rejected at the time of subscription refill/ renewal (and could be saved), due to a variety of reasons totally out of Scale’s control. We got to work and implemented our solution.

Shortly after, by cutting out a portion of those card declines, we saw a stream of steady and increased revenue, overall raising their KPIs. 

As more deals were seamlessly approved in real-time, a number of things took place. Customer satisfaction levels grew, retention rate improved, and even the ticket size per transaction increased, thanks to frictionless payment experiences. 

“We grew our subscription retention rate by 2.4%.”

Bouncing up lost checkout deals

Renewals were just the beginning - while analyzing Scale Media’s checkout transactions, they realized how many of their customers were actually unable to complete their purchase - 10% (!) of their customers were being rejected at checkout, due to different reasons. 

We applied our proprietary machine-learning algorithms on Scale’s data, using millions of data points, and identifying which declined checkout transactions should be recovered. With our real-time ML model and zero-risk policy, we were able to recover a full 30% of Scale’s declined checkout transactions.  Bounce’s auto-recovered checkout deals lift Scale’s top line by almost 3%.

As Scale’s checkout experience improved, the average user purchase size and total number of purchases increased. Instead of losing potential users to failed checkout processes, Scale was now retaining its leads and customers at much higher rates.

“We work closely with bounce and see bounce’s team as partners. We constantly consult the team with any payment related decision”.

What it’s like to partner with Bounce

Every decision related to payments is a multifaceted process for any company. At Bounce, we thrive on collaboration to enhance your company's payment experiences. Our approach is to seamlessly integrate with your processes, providing valuable insights and guidance. 

The successful collaboration with Scale's talented team has driven the desired results – improved metrics and happy customers. Together, we were able to showcase the power of a collaborative approach in transforming payment experiences.

"As for the decision to work with Bounce, it was a pretty straightforward one. We took zero-risk and saw an uplift of 3-5% on our checkout generated revenue"

top stories
Growth Marketing
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How to reduce your retargeting costs and optimize your efforts

As Michael Jordan famously said, “I’ve never lost a game; I just ran out of time.” This mindset of quickly bouncing back after a setback is crucial in e-commerce, where retargeting serves as a strategy to recover from lost sales, especially following a failed transaction.

Reminding them of what they left behind

Retargeting is a powerful strategy to remind customers of what they left behind and bring them back to complete their purchase. Companies like AdRoll and Criteo excel in this, using cookies and tracking pixels to craft personalized ads based on users’ previous interactions, significantly boosting conversion rates and enhancing brand recall. Retargeting is a key strategy for converting “window shoppers” into buyers by leveraging their initial interest and keeping the brand top-of-mind.

However, are you considering whether retargeting is always the most cost-effective solution after a failed transaction? This practice is particularly common, where businesses instinctively turn to retargeting to recover lost sales. While retargeting can be effective, it doesn’t address one of the root causes of lost sales: false credit card declines.

While retargeting can be effective, it doesn’t address one of the root causes of lost sales: false credit card declines.

False credit card declines continue to be a significant issue for merchants, costing billions in lost revenue. But is it really so significant? In 2019, merchants in the U.S., U.K., France, and Germany collectively lost $20.3 billion due to false credit and debit card declines, according to a study by Checkout.com and Oxford Economics. This figure represents a substantial increase compared to earlier estimates, underscoring the growing impact of this problem. For every dollar lost to actual fraud, around $25 in genuine transactions are falsely declined, which is a substantial burden on businesses. These false declines cause immediate revenue loss and necessitate increased spending on retargeting efforts to recover these lost sales. Instead of constantly solving the problem after it occurs with expensive retargeting, businesses can prevent it in the first place by addressing the root cause -false credit card declines.

What are false declines and why do they happen?

False declines occur when customers cannot complete a payment due to failures in the authorization process, which can involve the vendor, payment-processing platform, or credit card issuer. The issuer is responsible for approving or declining transactions and provides an error code when a charge fails. Common causes include insufficient funds, incorrect card information, expired cards, suspicious activity, technical glitches, outdated customer information, and overly stringent fraud prevention measures. These issues not only impact revenue by causing potential sales losses but also affect other marketing efforts and KPIs - Cost of Acquisition (CAC), LifeTime Value (LTV), conversion rates and retargeting efforts as well as customer experience, and operational efficiency. High decline rates frustrate customers, leading to abandoned purchases and eroded trust, while straining resources and increasing support inquiries. Additionally, monitoring decline rates helps optimize revenue, enhance customer satisfaction, detect fraud early, streamline operations, and contribute to informed strategic decisions.

How Bounce helps reduce retargeting costs 

Bounce offers a cutting-edge AI-based payment recovery solution designed to address the issue of false declines. By analyzing millions of data points in real-time, Bounce can distinguish between valid and invalid declines, recovering over 30% of transactions that would otherwise be lost. This not only helps retain revenue but also reduces the need for extensive retargeting campaigns, thereby cutting down on retargeting costs.

Your Gain

Reduction in Retargeting Costs: By recovering falsely declined transactions, Bounce significantly minimizes the need for additional retargeting efforts. This leads to substantial savings in your marketing budgets, allowing you to allocate resources more efficiently.

Improved Customer Retention: Ensuring a smoother checkout experience reduces customer frustration and improves loyalty. This enhances the lifetime value (LTV) of your customers, as satisfied customers are more likely to return and make repeat purchases. Our clients have seen a 15% decrease in churn due to the improved payment process.

Higher Conversion Rates: Successfully recovered transactions boost overall conversion rates. This maximizes the return on investment (ROI) for your initial marketing efforts, turning more potential leads into actual sales and driving revenue growth. Our solution has been shown to increase conversion rates by up to 10%, significantly enhancing your marketing ROI.

Enhanced Renewal Rates: Subscription renewals often face payment issues, with decline rates reaching up to 50%. Bounce identifies and resolves these issues, recovering up to 20% of almost lost renewal deals, directly boosting your subscription renewals and overall revenue. This results in a 5% increase in your top-line revenue and improves key metrics like CAC, LTV, and retention.

You can save millions annually

Retargeting is essential for e-commerce success, but it comes with significant costs, particularly when dealing with false credit card declines. Bounce’s AI-based payment solution offers a powerful way to reduce these costs by ensuring more transactions are successfully processed, improving customer satisfaction, and enhancing the overall efficiency of marketing campaigns. By addressing false declines, businesses can save millions annually, gain a higher return on their marketing efforts, and lift their top line by up to 5%.

Schedule a meeting with our experts and let’s see together how much you can save.

Growth Marketing
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Credit card declines: inconvenience or significant trouble?

We've all been there - gleefully clicking "Buy Now" on what seems like the best deal, whether it's booking that long-awaited flight, upgrading to the latest high-end smartphone, or ordering a customized New York Times front page puzzle, and suddenly: your card has been declined.This all-too-common issue, known as a card decline, occurs when a credit or debit card transaction is rejected during checkout. While it may seem like a minor inconvenience to the shopper, for businesses, card declines can signal significant trouble.

Research shows that over 10% of checkouts fail due to payment declines, significantly impacting e-commerce and subscription services, resulting in millions of dollars lost annually. Furthermore, the operational costs associated with managing declined transactions and providing customer support add another layer of expense. Businesses also grapple with higher customer acquisition costs (CAC) as they endeavor to re-engage lost customers, making card declines a pressing issue that requires attention.

For large online retailers, a single percentage point increase in decline rates can translate to tens of millions of dollars in lost sales annually. In 2023, U.S. eCommerce firms are projected to lose $157 billion due to false declines alone. Major players in the e-commerce space report that decline-related friction can significantly reduce customer lifetime value (CLV), with companies like Postmates experiencing a 1.72% uplift from implementing card account updater services, leading to $60 million in recovered revenue.

Resulting in substantial lost sales

When customers encounter declined transactions during online purchases, the experience often leads to significant frustration and impacts their future behavior and perception of the business. According to a study by the Baymard Institute, nearly 70% of online shopping carts are abandoned due to various issues, including credit card declines. Approximately 26% of shoppers who experience a payment issue, such as a card decline, end up purchasing the same product from a competitor.  Additionally, credit card debt surged to over $1 trillion in Q2 2023, reflecting increased transaction volumes but also a higher risk of declines and delinquencies. This issue not only leads to immediate revenue loss but also tarnishes brand perception, as frequent declines can make customers question a business’s reliability, potentially spreading negative reviews and eroding trust. Furthermore, the 2023 McKinsey Global Payments Report highlights that such experiences significantly decrease customer loyalty, with dissatisfied customers more likely to seek alternatives, thereby increasing churn rates and reducing customer lifetime value.

Strategies to mitigate card declines

Effectively managing card declines is crucial for maintaining revenue and customer satisfaction. Here are advanced strategies to reduce declines and improve transaction success rates:

  • Accepting Digital Wallets: Digital wallets like Apple Pay and Google Pay use tokenization and two-factor authentication, reducing fraud risk and improving authorization rates. They expedite the checkout process, enhancing customer satisfaction.
  • Accurate Industry Indicators and Customer Information Ensure all transaction data matches business activities and customer details. Using accurate Merchant Category Codes (MCCs) and complete billing information, including ZIP codes and CVCs, strengthens authentication and reduces declines due to mismatched information.

How to tackle credit card declines with Bounce’s solution

At Bounce, we are committed to excellence with our advanced AI that recovers failed payments in real-time, requires minimal resources, and operates on a commission basis, ensuring businesses only pay for successful recoveries. Our solution includes:

  • AI-Based Payment Recovery: Our system analyzes transaction data in real-time to recover failed payments, boasting a recovery rate of over 30% for declined transactions.
  • Real-Time Transaction Analysis: Continuous monitoring of transaction patterns allows us to quickly identify and address issues that might lead to declines.
  • Seamless Integration: Our technology integrates smoothly with existing payment systems, requiring no additional budget or extra work after implementation.

And contributes to these KPIs:

  • Increases top line by 5%: By recovering a substantial portion of failed transactions, we help businesses boost their overall revenue.
  • Improves Authentication Rates by 7%: Enhanced fraud detection and verification processes improve the success rate of legitimate transactions.
  • Reduces Customer Acquisition Cost (CAC): Efficiently managing declines helps retain customers and reduces the need for costly reacquisition efforts.

Incorporating innovative tools like ours transforms this challenge into an opportunity. With industry-leading AI-driven payment recovery and real-time transaction analysis, we don’t just mitigate the impact of card declines; we revolutionize the entire checkout experience. By integrating such sophisticated technology, businesses can optimize revenue streams and enhance customer experience and retention, knowing they are less likely to be declined for no good reason, ultimately positioning themselves as leaders in the marketplace.

Growth Marketing
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How to improve your checkout conversion rate

Ever wondered why your online shoppers are ditching their carts at checkout? If you answered yes, you might be in the middle of a checkout conversion problem.

In other words, visitors come to your website to make a purchase, but leave before completing their purchase. This phenomenon is all too common in e-commerce, with abandoned cart rates having skyrocketed to 70% in 2023.

Fortunately, there are several effective tactics businesses can employ to tackle this problem head-on and reclaim your potential customers. In this blog, we'll delve into the top ways you can boost checkout conversion rates and up your revenue.

But first, why are people dropping out?  

There are many reasons why people visit your online store, make their way through a purchase process and then at the last minute totally change their minds. Here's a list of the typical reasons why you’re not getting those wins. 

  • Complicated checkout process: A lengthy or convoluted checkout process with too many steps or form fields can discourage customers from completing their purchase.
  • Account creation walls: Requiring users to register or create an account before checkout can be a barrier, especially for first-time visitors.
  • Lack of preferred payment option: If your store doesn't offer the payment method preferred by a customer, they may abandon their cart rather than compromise on payment security or convenience.
  • Lack of trust in website security: Concerns about the security of personal and financial information can cause customers to abandon their carts if they don't trust the website's security measures.
  • Unable to save the items for later: Some customers might wish to save items for future purchase or comparison, leading them to abandon their carts temporarily.
  • Website errors: Technical glitches or slow loading times can frustrate visitors and lead them to abandon their carts.

Top ways to improve your checkout conversions rate 

1. Simplify the checkout process

People appreciate a clear and intuitive buying process. However, many businesses fail to deliver on this. To increase conversion rates, aim to make the journey to checkout as simple as possible without unnecessary steps, forms, or pop-ups. To create a simplest checkout process: be mindful of general design and layout, and  keep the journey as quick (and painless) as possible. 

2. Offer guest checkout

As mentioned above, there should be minimal steps before checkout. A great technique to achieve this is by offering Guest Checkout options. This allows potential shoppers to bypass account creation and purchase items directly, thereby potentially preventing a 35% drop in transactions. Shoppers provide their information for their order, such as their name, shipping address, and payment details, without wasting their precious time creating an account on your website.

3. Optimize for mobile

Most folks these days shop on their mobile phones - 76% of adults (US), to be exact. If you're running an ecommerce store, you'd best make sure that you adjust mobile navigation so that your online store is fully optimized for the mobile experience. Key actions you can take include ensuring a highly responsive design, providing an optimal mobile view, and integrating payment options like Apple Pay, Google Pay, and PayPal, allowing users to complete their purchases with a single touch or click.

4. Display clear shipping fees

If you have global customers shopping from your online store, they probably want to see shipping costs before they click the pay button. Shipping costs can significantly affect prices, and purchasing an item without shipping costs can appear quite different at checkout. To avoid misleading customers, it's best to display clear shipping costs and available payment methods clearly on the checkout page. Doing this helps shoppers make better-informed decisions, ensures transparent pricing, and even boosts trust.

5. Communicate trust

Customers want to feel safe and secure when making purchases online. This includes having a reputable-looking website and displaying various badges for payment security, data protection, and purchase policies. Creating a trustworthy relationship with your customers boosts conversion rates. In fact, statistics show that 35% of potential buyers abandon a site without a security badge. These trust signals reassure customers that their information is safe and their purchase is protected.

6. Offer multiple payment options

Different customers have various preferences when it comes to payment methods. The Baymard Institute found that 6% of cart abandonments occur due to a lack of preferred payment methods. With more options, paying becomes more convenient, increasing the likelihood of completing a purchase. By offering multiple payment options, you make it easier for customers to pay in a way that suits their preferences and needs.

7. Use abandoned cart emails

Implementing an abandoned cart marketing strategy is crucial. A great way to do this is by  re-engaging customers through "abandoned cart emails." Setting up emails gently reminds customers about their abandoned carts, highlights the items left behind, and utilizes personalized tactics tailored to reflect their buyer interests. Additionally, offering exclusive discounts or special offers can entice customers to return and seal the deal.

8. Reduce card decline rates

Having your customer click on the "pay" button can still turn out to be a lost conversion. Countless good deals are lost due to card declines - in fact, an average of 10% of checkout purchases get thrown out right at this very last conversion stage. This problem often goes unnoticed by merchants, but it can lead to millions of dollars lost for your business, not to mention the wasted marketing costs. With Bounce, your ecommerce business can identify false card declines and recover over 30% of them in real time, ensuring you capture valuable revenue opportunities and minimize losses effectively.

Optimize checkout for success

Whether it’s confusing web design, or false card declines, improving your checkout process is vital for ecommerce success. With many factors leading to cart abandonment, streamlining the online checkout is crucial for retaining customers, building loyalty, and boosting revenue. By prioritizing checkout optimization, businesses can seamlessly guide customers through the buying journey and resolve common pain points that maximize value from your shoppers.

Use Cases
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Subscription signup: unlocking hidden revenue streams

Onboarding new subscribers takes work. So does maximizing revenue.
Whether you're building and marketing a recurring SaaS subscription, digital service, or consumer goods, it requires a solid team effort.
Much has been written about how to drive a company's marketing wins and increase sales.
But what about recovering subscription signup losses?

Marketing, customer success and business execs understand the painstaking effort involved in guiding potential consumers through the funnel and investing time and resources to garner subscription signups.
Which is why nothing is more frustrating than watching those potential consumers arrive at checkout, and hand over their credit card details, only to have their payment declined. Potential subscription is lost.
It’s disheartening, and in many cases, it can be avoided.

The hidden cost of failed subscription signup 

Here's a fact: 15% of potential subscribers get rejected at signup due to card declines.

Simply put, for every 100 customers that enter their credit card details and hit “Subscribe”, only 85 will become paying subscribers.
That’s an astounding financial loss at the moment of conversion, especially when considering this next fact.

More than half of signup payment rejections are in fact valid subscribers. 

Of the 15% of subscribers that were rejected at signup, more than half (!) were in fact, valid consumers.
They were blocked or flagged and couldn’t complete the purchase, although you would be happy to have them as your subscribers.
This could be avoided and overturned with Bounce, which can take up to 30% of your signup declines and turn them into absolute wins.

Recovering lost revenue with Bounce

How does that translate into lost revenue?
It's about 5% of your top line.
5% of revenue, which, if not for a payment failure, would be part of your company's core revenue.

At Bounce, we help merchants recover failed subscription signups by seamlessly identifying and approving them in real time.
Our AI-powered engine uses machine learning to analyze tens of thousands of data points, identifying the good deals that were wrongly flagged as bad and instantly approving them.
With our integrated subscription win-back policy, valid users are auto-approved at the subscription checkout.

No wait time. No checkout friction.  No-risk. Your lost signup subscribers  are saved and enjoy a flawless signup experience.

From a company growth perspective, the wins don’t just stop at checkout.
They trickle down to many other areas, affecting a wide host of KPIs. Let’s have a look:

Company growth: the Bounce impact

  • Top Line Impact - Losing deals during subscription signup means less total revenue. These deals should’ve been yours.
  • Cost of Acquisition (CAC) - After investing in acquiring a new subscriber, facing a failed signup checkout means starting over and increasing the Cost of Acquisition. Less conversions -> higher CAC.
  • Retargeting Expenditure - Once these customers are declined, they are not going to come back easily. A failed subscription signup will result in spending additional marketing funds on retargeting campaigns to bring your consumers back.
  • LTV (Lifetime Value) impact - Negative experiences at subscription signup checkout directly decrease the overall Lifetime Value (LTV) of customers, as they will probably not come back, and will, of course, not reach the next payment cycle.
  • Conversion Rates Setback - Losing customers during subscription signup means lower checkout-to-paid conversion.
  • Purchase Size - Rejections at signup may lead prospects to rethink the size of their purchase. Even if they complete their transaction with another payment method, they’re far more likely to opt for a lower-priced product or service.
Use Cases
0
How Bounce improves card authentication

The authentication process and its effect on your KPIs

Card authentication declines happen more often than you think. 

At Bounce, we wanted to get to the bottom of it.
While mapping hidden and obscure spots of the payments industry, we uncovered something quite incredible -
up to 30% of online credit card authentication processes are denied.

This scenario frequently occurs when you allow your customer to try the product or service before paying for it. Within the context of free trial subscriptions and sign-ups, failed card authentication is a common occurrence.

During a trial sign-up, a merchant authenticates the user's card while allowing them to try out the product or service before payment.
Sadly, due to false payment declines, the merchant can inadvertently block the customer during the authentication step. This occurs after the customer has made the crucial decision about your product, provided the payment details, and all that remains is for them to complete the authentication process.
But it's precisely at this critical moment that you are losing them, and possibly for good.

The authentication process is both an opportunity and a challenge.
If the customer fails the authentication for no good reason, it will tarnish the customer's experience.

On the other hand, when done right, authentication gives the seller an opportunity to bypass certain customers who are less likely to become paying customers, thereby increasing conversion and top line.
Essentially, this process  increases the percentage of users that ultimately become paying customers.

Over the years we learned that many companies are not even aware of how many good deals they’re losing due un-authentication rates.
Many don’t see how common the problem is and how it affects a business’s performance and the marketing team’s KPIs:

  • Top-line - False authentication declines lead to lost customers, deals, and loss in revenue.
  • Cost of Acquisition (CAC) - Getting a successful user registration is a massive step, especially after all the marketing resources you spent on getting them there. An unauthenticated credit card deal puts you in a position to retarget and repeat the process, causing your CAC to spike.
  • LTV, retention and repeat customers - The negative effect of declined authorization process has a clear impact on LTV. The customer’s bad experience will result in them not coming back. In the case of free trial, they will clearly not turn into recurring revenue, as they are not even starting their journey with you. 
  • Conversion rates - Losing customers during the authorization process not only affects the specific authentication conversion rates but hinders the whole conversion - Leads/ Visitors > Free trial > customers.

How Bounce improves authentication rates

Here at Bounce, we've learned to identify false authentication authorization declines,
enabling us to save an average of 20% of deals that were wrongly rejected.
This results in a 7% increase in the total number of users progressing to the next stage of your funnel.

Our ML algorithm quickly identifies and approves good deals in real-time, saving the transaction and ensuring users can smoothly transition to become paying customers after authentication, without any roadblocks. 

By perfecting the authentication process, you can filter out unwanted leads and ensure you only allow leads with conversion potential to move forward.
It’s about balance - you need to make sure these good users are moving forward, while identifying those that are not going to become paying ones.

Unlike other marketing, growth or optimization tools, Bounce doesn’t require any additional budget or extra work after implementation.
There is no customization, monitoring, or any additional set up needed - All you have to do is relax and enjoy the absolute wins.

Success Stories
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How Bounce improved authentication rates for Lingopie and lifted their entire business KPIs

How Bounce improved authentication rates for Lingopie and lifted  their entire business KPIs

Lingopie is the world's only language-learning application that uses real TV shows and movies to help its users learn a new language. They make language learning fun and as simple as watching your favorite TV show.

One of Lingopie’s amazing achievements is their long-lasting relationship with their users. 

While joining their subscription service, Lingopie users go through an authentication process before starting their free trial. The purpose of the authentication process is to prevent fraud and attain a valid form of payment from the user.

Having a reliable, smart and efficient authentication process that validates the users is key to achieving long lasting relationships. 

Before Lingopie started working with us many of their potential users did not comply with the authentication process.

We got to partner with Samuel Medalie, CFO of Lingopie and found that many users were failing the authentication stage due to faulty declines. These users could have been approved but were not making it past the initial authentication.

We integrated with Lingopie’s current authentication process, keeping the existing user journey. Putting our solution to work, our ML algorithm identifies good users who were about to be blocked by card declines. These good users were able to smoothly pass the authentication process and move on to the free trial phase, ensuring a positive experience.

After joining Bounce the number of new users completing the authentication process increased, allowing more users to initiate their journey with Lingopie and transition into paying customers.

"Bounce increased our authentication rates by 8%. Customers are automatically approved, so the user experience is seamless."

This has a huge impact on Lingopie’s subscribers, which increased by 5% as well as other KPIs such as top line, LTV, conversion rates and retention.

"Bounce helped us provide our new users with a smooth authentication experience. More users start their journey with us and stay for a longer time”

While improving Lingopie’s authentication process, we were also happy to advise them with other payment-related decisions they faced, such as optimizing their subscription process. We simply see our customers as partners and their success is also our success.

Success Stories
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Scale turned millions $ in declined checkout and renewals into revenue

Scale is a California based, tech-driven company. They build next-generation health, wellness education, and products that address some of the world's most common health issues. They sell their products online as a subscription base or as a one off purchase and have a checkout process in place.

They knew they had challenges around checkout and subscription conversion and were hoping to find a solution to mitigate that.

We partnered with Hannah Blum, Head of Marketing Strategy, and Chris (Christapor) Arzoumanian, Senior growth product marketing manager, two industry experts.  

Diving into Scale’s processes

Scale offers various types of supplements, in 5 different brands, both one-time checkouts and subscription refills. When reviewing Scale’s system, we ran a comprehensive analysis of their payments, to see which failed payments could be saved. Through our ML system, we found that 20%-30% of their customers were being wrongly rejected at the time of subscription refill/ renewal (and could be saved), due to a variety of reasons totally out of Scale’s control. We got to work and implemented our solution.

Shortly after, by cutting out a portion of those card declines, we saw a stream of steady and increased revenue, overall raising their KPIs. 

As more deals were seamlessly approved in real-time, a number of things took place. Customer satisfaction levels grew, retention rate improved, and even the ticket size per transaction increased, thanks to frictionless payment experiences. 

“We grew our subscription retention rate by 2.4%.”

Bouncing up lost checkout deals

Renewals were just the beginning - while analyzing Scale Media’s checkout transactions, they realized how many of their customers were actually unable to complete their purchase - 10% (!) of their customers were being rejected at checkout, due to different reasons. 

We applied our proprietary machine-learning algorithms on Scale’s data, using millions of data points, and identifying which declined checkout transactions should be recovered. With our real-time ML model and zero-risk policy, we were able to recover a full 30% of Scale’s declined checkout transactions.  Bounce’s auto-recovered checkout deals lift Scale’s top line by almost 3%.

As Scale’s checkout experience improved, the average user purchase size and total number of purchases increased. Instead of losing potential users to failed checkout processes, Scale was now retaining its leads and customers at much higher rates.

“We work closely with bounce and see bounce’s team as partners. We constantly consult the team with any payment related decision”.

What it’s like to partner with Bounce

Every decision related to payments is a multifaceted process for any company. At Bounce, we thrive on collaboration to enhance your company's payment experiences. Our approach is to seamlessly integrate with your processes, providing valuable insights and guidance. 

The successful collaboration with Scale's talented team has driven the desired results – improved metrics and happy customers. Together, we were able to showcase the power of a collaborative approach in transforming payment experiences.

"As for the decision to work with Bounce, it was a pretty straightforward one. We took zero-risk and saw an uplift of 3-5% on our checkout generated revenue"

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Growth Marketing
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What are card declines, why do they happen and how do they affect your top line

It's no surprise that over 33% of the world’s population shops online, propelling e-commerce into a $6 trillion industry, with projections to reach $8 trillion by 2027. The opportunities are vast, but so are the pitfalls. While potential customers are busy adding items to their online carts, many businesses are still losing substantial revenue.

Most marketers are familiar with the alarming online shopping cart abandonment rate of 70%. Still, fewer are aware that many customers abandon their carts due to declined transactions rather than complicated checkout processes, unexpected shipping costs, or slow delivery times. In fact, 10% of checkout deals are declined, directly affecting your top line revenue with an average potential loss of 5%. However, not all is lost. You’d be surprised how many of these are false card declines (i.e. when payment systems mistakenly reject valid transactions). In this must-read post, we’ll explore why this happens and how you can prevent it from impacting your business.

What are card declines and why do they happen?

Card declines happen when customers cannot complete a payment due to failures in the authorization process. These issues can arise from problems with the card network, payment-processing platform, or credit card issuer. Today, every step of the processing flow declines a transaction. - the issuer, the network, and the gateway. When a charge fails, the merchant is given an error code to the business (and hundreds of error codes). 

Understanding the reasons behind card declines is crucial for eCommerce success.

There are several common causes:

  • Insufficient funds: The most straightforward reason for a card decline is that the customer’s account doesn’t have enough funds to cover the purchase. This is beyond the merchant's control but remains a significant cause of lost sales. 
  • Incorrect card information: Simple errors in entering card details—such as an incorrect number, expiration date, or CVV code—can lead to declines. These mistakes often occur during hurried or distracted checkout processes.
  • Expired cards: Customers sometimes forget to update their card information when their old cards expire. This leads to automatic declines when outdated card details are used.
  • Suspicious activity: Banks and card issuers may decline transactions that appear unusual or potentially fraudulent. This can be particularly common for international transactions or unusually large purchases. While these measures are intended to protect customers, they can also result in legitimate transactions being wrongly declined.
  • Technical glitches: System errors, either on the merchant's end or within the payment gateway, can cause transactions to fail. These issues might stem from server downtime, software bugs, or connectivity problems.
  • Outdated customer information: Changes in a customer's address or phone number that aren’t updated in the bank’s records can lead to mismatches during the verification process, resulting in declines.

Why it’s important to track your card decline rate

Despite the attention given to cart abandonment ratios, the importance of tracking card decline rates often goes overlooked. Some might look into payment acceptance rates that indicate the proportion of revenue captured compared to potential untapped revenue. However, they still can’t fully grasp the impact of such a decline on their business. 

By staying vigilant and proactive in monitoring decline rates, you can ensure a smoother payment process for your customers while maximizing your business's financial performance.  

Here’s why it’s crucial you track your card declines:

  • Revenue optimization: Monitoring decline rates helps identify and address issues in payment processes, optimizing flow to capture potential revenue loss.
    Just about every marketing KPI is affected by conversion fails including your top line Impact, cost of acquisition (CAC), reacquisition costs, LTV, and conversion-to-paid rate/monetization rate. 
  • Customer experience: High decline rates frustrate customers, leading to abandoned purchases and eroded trust. Tracking enables proactive issue resolution, enhancing satisfaction and loyalty. 
  • Fraud prevention: Sudden increases in decline rates may signal fraud. Tracking helps detect suspicious trends early, allowing for additional security measures.
  • Operational efficiency: High decline rates strain resources, increasing support inquiries and manual interventions. Tracking enables streamlining of operations and resource allocation.
  • Strategic decision-making: Decline data provides insights into payment behavior and preferences, informing decisions on methods, fraud prevention, and customer engagement for business growth.

Recovering more than 30% of your false card declines 

Though it seems like a clear win, it might come as a surprise that a customer's click on the "pay" button doesn't always guarantee a successful conversion. Within the realm of eCommerce, false card declines present a formidable obstacle for businesses, affecting acceptance rates and overall revenue, while also resulting in disappointed customers who may seek alternatives from competitors to complete their purchase.

Bounce empowers you to identify false card declines swiftly and efficiently, recovering more than 30% of them in real-time. This seamless process ensures that you not only maximize revenue potential but also minimize losses effectively.

Growth Marketing
0
How to reduce your retargeting costs and optimize your efforts

As Michael Jordan famously said, “I’ve never lost a game; I just ran out of time.” This mindset of quickly bouncing back after a setback is crucial in e-commerce, where retargeting serves as a strategy to recover from lost sales, especially following a failed transaction.

Reminding them of what they left behind

Retargeting is a powerful strategy to remind customers of what they left behind and bring them back to complete their purchase. Companies like AdRoll and Criteo excel in this, using cookies and tracking pixels to craft personalized ads based on users’ previous interactions, significantly boosting conversion rates and enhancing brand recall. Retargeting is a key strategy for converting “window shoppers” into buyers by leveraging their initial interest and keeping the brand top-of-mind.

However, are you considering whether retargeting is always the most cost-effective solution after a failed transaction? This practice is particularly common, where businesses instinctively turn to retargeting to recover lost sales. While retargeting can be effective, it doesn’t address one of the root causes of lost sales: false credit card declines.

While retargeting can be effective, it doesn’t address one of the root causes of lost sales: false credit card declines.

False credit card declines continue to be a significant issue for merchants, costing billions in lost revenue. But is it really so significant? In 2019, merchants in the U.S., U.K., France, and Germany collectively lost $20.3 billion due to false credit and debit card declines, according to a study by Checkout.com and Oxford Economics. This figure represents a substantial increase compared to earlier estimates, underscoring the growing impact of this problem. For every dollar lost to actual fraud, around $25 in genuine transactions are falsely declined, which is a substantial burden on businesses. These false declines cause immediate revenue loss and necessitate increased spending on retargeting efforts to recover these lost sales. Instead of constantly solving the problem after it occurs with expensive retargeting, businesses can prevent it in the first place by addressing the root cause -false credit card declines.

What are false declines and why do they happen?

False declines occur when customers cannot complete a payment due to failures in the authorization process, which can involve the vendor, payment-processing platform, or credit card issuer. The issuer is responsible for approving or declining transactions and provides an error code when a charge fails. Common causes include insufficient funds, incorrect card information, expired cards, suspicious activity, technical glitches, outdated customer information, and overly stringent fraud prevention measures. These issues not only impact revenue by causing potential sales losses but also affect other marketing efforts and KPIs - Cost of Acquisition (CAC), LifeTime Value (LTV), conversion rates and retargeting efforts as well as customer experience, and operational efficiency. High decline rates frustrate customers, leading to abandoned purchases and eroded trust, while straining resources and increasing support inquiries. Additionally, monitoring decline rates helps optimize revenue, enhance customer satisfaction, detect fraud early, streamline operations, and contribute to informed strategic decisions.

How Bounce helps reduce retargeting costs 

Bounce offers a cutting-edge AI-based payment recovery solution designed to address the issue of false declines. By analyzing millions of data points in real-time, Bounce can distinguish between valid and invalid declines, recovering over 30% of transactions that would otherwise be lost. This not only helps retain revenue but also reduces the need for extensive retargeting campaigns, thereby cutting down on retargeting costs.

Your Gain

Reduction in Retargeting Costs: By recovering falsely declined transactions, Bounce significantly minimizes the need for additional retargeting efforts. This leads to substantial savings in your marketing budgets, allowing you to allocate resources more efficiently.

Improved Customer Retention: Ensuring a smoother checkout experience reduces customer frustration and improves loyalty. This enhances the lifetime value (LTV) of your customers, as satisfied customers are more likely to return and make repeat purchases. Our clients have seen a 15% decrease in churn due to the improved payment process.

Higher Conversion Rates: Successfully recovered transactions boost overall conversion rates. This maximizes the return on investment (ROI) for your initial marketing efforts, turning more potential leads into actual sales and driving revenue growth. Our solution has been shown to increase conversion rates by up to 10%, significantly enhancing your marketing ROI.

Enhanced Renewal Rates: Subscription renewals often face payment issues, with decline rates reaching up to 50%. Bounce identifies and resolves these issues, recovering up to 20% of almost lost renewal deals, directly boosting your subscription renewals and overall revenue. This results in a 5% increase in your top-line revenue and improves key metrics like CAC, LTV, and retention.

You can save millions annually

Retargeting is essential for e-commerce success, but it comes with significant costs, particularly when dealing with false credit card declines. Bounce’s AI-based payment solution offers a powerful way to reduce these costs by ensuring more transactions are successfully processed, improving customer satisfaction, and enhancing the overall efficiency of marketing campaigns. By addressing false declines, businesses can save millions annually, gain a higher return on their marketing efforts, and lift their top line by up to 5%.

Schedule a meeting with our experts and let’s see together how much you can save.

Growth Marketing
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Introducing Bounce’s hidden losses estimator

While it's common to monitor metrics like cart abandonment rates, assessing your card decline ratio is often overlooked.

Interestingly, research shows that up to 50% of card declines are associated with valid transactions, representing significant revenue losses. These declines not only directly reduce your revenue but also adversely affect other critical KPIs such as Customer Acquisition Cost (CAC), Lifetime Value (LTV), retargeting costs, and retention rates.

Introducing Bounce’s hidden losses estimator

By utilizing our estimator, you can gain a comprehensive understanding of your current card decline losses and their broader implications on your KPIs. In just a few steps, you will obtain valuable insights that can help you mitigate these losses and optimize your business performance.

The importance of tracking your card decline rate

While businesses frequently monitor cart abandonment ratios, the critical nature of tracking card decline rates often goes unnoticed. Payment acceptance rates might offer a glimpse into the captured revenue versus potential untapped revenue, but they don't fully illustrate the profound impact card declines have on overall business health.

Keeping a close eye on your card decline metric is crucial. Here’s why:

  • Revenue recovery: Up to 50% of card declines are valid transactions, representing significant revenue loss. Addressing these can directly boost your bottom line.
  •  Impact on marketing KPIs: Just about every marketing KPI is affected by conversion fails, including top-line impact, cost of acquisition (CAC), retargeting costs, lifetime value (LTV), and conversion-to-paid rate/monetization rate. By reducing decline rates, you can positively influence these metrics.
  • Fraud detection: Sudden spikes in decline rates can indicate potential fraud. Early detection allows you to implement security measures, protecting your business from substantial losses.
  • Informed strategy: Data on card declines provides insights into payment behaviors, guiding strategic decisions on payment options, fraud prevention, and customer engagement, ultimately driving business growth.

How to use Bounce’s hidden losses estimator

It’s easy as 1,2,3! 

Visit this link and enter your email address to get started. We’ll then ask you a bit about your business and what you sell (apps, books, cosmetics, cleaning supplies, household goods, legal services, etc). Choose what best describes your business and then pick out your primary market location. Write down your annual revenue from online sales. Write down the percentage of the revenue that comes from international sales. If you sell internationally, tell us where you sell (up to 5 countries) and let us know whether you’re selling to consumers or businesses. We’ll guide you through just a few more questions to get you to the finish line! There you’ll learn how much money you’re losing to card declines and how much can be saved. Trust us- you won’t believe the numbers! 

Staying vigilant in monitoring card decline rates is not just about improving payment processes; it's about securing your business's financial health and ensuring long-term growth. Start tracking today to unlock these benefits and drive your business forward.

Try out our hidden losses estimator now!

Growth Marketing
0
Credit card declines: inconvenience or significant trouble?

We've all been there - gleefully clicking "Buy Now" on what seems like the best deal, whether it's booking that long-awaited flight, upgrading to the latest high-end smartphone, or ordering a customized New York Times front page puzzle, and suddenly: your card has been declined.This all-too-common issue, known as a card decline, occurs when a credit or debit card transaction is rejected during checkout. While it may seem like a minor inconvenience to the shopper, for businesses, card declines can signal significant trouble.

Research shows that over 10% of checkouts fail due to payment declines, significantly impacting e-commerce and subscription services, resulting in millions of dollars lost annually. Furthermore, the operational costs associated with managing declined transactions and providing customer support add another layer of expense. Businesses also grapple with higher customer acquisition costs (CAC) as they endeavor to re-engage lost customers, making card declines a pressing issue that requires attention.

For large online retailers, a single percentage point increase in decline rates can translate to tens of millions of dollars in lost sales annually. In 2023, U.S. eCommerce firms are projected to lose $157 billion due to false declines alone. Major players in the e-commerce space report that decline-related friction can significantly reduce customer lifetime value (CLV), with companies like Postmates experiencing a 1.72% uplift from implementing card account updater services, leading to $60 million in recovered revenue.

Resulting in substantial lost sales

When customers encounter declined transactions during online purchases, the experience often leads to significant frustration and impacts their future behavior and perception of the business. According to a study by the Baymard Institute, nearly 70% of online shopping carts are abandoned due to various issues, including credit card declines. Approximately 26% of shoppers who experience a payment issue, such as a card decline, end up purchasing the same product from a competitor.  Additionally, credit card debt surged to over $1 trillion in Q2 2023, reflecting increased transaction volumes but also a higher risk of declines and delinquencies. This issue not only leads to immediate revenue loss but also tarnishes brand perception, as frequent declines can make customers question a business’s reliability, potentially spreading negative reviews and eroding trust. Furthermore, the 2023 McKinsey Global Payments Report highlights that such experiences significantly decrease customer loyalty, with dissatisfied customers more likely to seek alternatives, thereby increasing churn rates and reducing customer lifetime value.

Strategies to mitigate card declines

Effectively managing card declines is crucial for maintaining revenue and customer satisfaction. Here are advanced strategies to reduce declines and improve transaction success rates:

  • Accepting Digital Wallets: Digital wallets like Apple Pay and Google Pay use tokenization and two-factor authentication, reducing fraud risk and improving authorization rates. They expedite the checkout process, enhancing customer satisfaction.
  • Accurate Industry Indicators and Customer Information Ensure all transaction data matches business activities and customer details. Using accurate Merchant Category Codes (MCCs) and complete billing information, including ZIP codes and CVCs, strengthens authentication and reduces declines due to mismatched information.

How to tackle credit card declines with Bounce’s solution

At Bounce, we are committed to excellence with our advanced AI that recovers failed payments in real-time, requires minimal resources, and operates on a commission basis, ensuring businesses only pay for successful recoveries. Our solution includes:

  • AI-Based Payment Recovery: Our system analyzes transaction data in real-time to recover failed payments, boasting a recovery rate of over 30% for declined transactions.
  • Real-Time Transaction Analysis: Continuous monitoring of transaction patterns allows us to quickly identify and address issues that might lead to declines.
  • Seamless Integration: Our technology integrates smoothly with existing payment systems, requiring no additional budget or extra work after implementation.

And contributes to these KPIs:

  • Increases top line by 5%: By recovering a substantial portion of failed transactions, we help businesses boost their overall revenue.
  • Improves Authentication Rates by 7%: Enhanced fraud detection and verification processes improve the success rate of legitimate transactions.
  • Reduces Customer Acquisition Cost (CAC): Efficiently managing declines helps retain customers and reduces the need for costly reacquisition efforts.

Incorporating innovative tools like ours transforms this challenge into an opportunity. With industry-leading AI-driven payment recovery and real-time transaction analysis, we don’t just mitigate the impact of card declines; we revolutionize the entire checkout experience. By integrating such sophisticated technology, businesses can optimize revenue streams and enhance customer experience and retention, knowing they are less likely to be declined for no good reason, ultimately positioning themselves as leaders in the marketplace.

0
Growth Marketing
0
How to remove B2C marketing funnel friction for better customer satisfaction

Consider how visitors navigate through your website before making a purchase. They typically start on the homepage, browse between the different products, add items to their cart, and then proceed to complete the purchase at checkout. However, this journey is rarely smooth. In this blog post, you'll discover exactly where and how to eliminate any potential or existing marketing funnel friction for your B2C and B2Ds all the way to checkout.

Limit landing page distractions 

The first point in both B2C and B2D marketing funnel friction is the landing page experience. A single issue on the landing page can cause visitors to leave prematurely. In fact 53% of visitors will abandon a page after only three seconds. This happens if visitors can’t find what they’re looking for, the loading time is too slow, or if the site has functional or usability problems.

Ensuring a seamless and user-friendly landing page experience is crucial to keeping customers engaged.

5 fundamentals of a spot-on landing page: 

  1. Create a headline that demands attention: Craft a headline that resonates with the target audience's needs and desires, using powerful action words and emotionally charged language.
  2. Use a hero image to bring your offers to life: Incorporate a visually appealing hero image that grabs visitors' attention and encourages engagement, while ensuring fast loading speeds.
  3. Create calls to action that inspire action: Design clear and persuasive calls to action (CTAs) that represent the conversion goal, personalized to the audience and campaign objectives.
  4. Provide form fields that make conversion easy: Simplify the conversion process by minimizing form fields to only essential information, ensuring a user-friendly 
  5. Offer social proofs to build trust: Utilize social proofs such as customer reviews, ratings, and testimonials to establish credibility and trust with potential customers, ultimately boosting conversion rates.

Simplify product navigation:

How you present and organize the products and offerings on your site can make-or-break your business. If your website has poor navigation, limited search functionality, or a cluttered layout, customers may struggle to discover the products that interest them, thus causing a whole lot of friction during the product discovery process. This can lead to frustration and abandonment of the shopping process, and of course a failure to arrive at checkout. 

Good design, coupled with intelligent and robust catalog search capabilities, hold the power to eliminate a major friction or pain point from the marketing funnel.

5 key product discovery strategies to improve navigation 

  1. High-quality images/videos: Provide multiple images/videos for each product to showcase its features.
  2. Advanced filtering/sorting: Offer robust options to narrow down searches by price, size, color, etc.
  3. Personalized recommendations: Use AI for tailored product suggestions based on user behavior.
  4. Improved search: Implement features like autocomplete and predictive search for quicker results.
  5. Interactive previews: Allow users to view essential product details without leaving the page.

Make trust an absolute must 

The inability to convey trust just might be costing you a lot of revenue. Communicating trust or adding "trust elements" is crucial in online transactions, especially in the realm of online shopping where you're betting on the fact that a person will have a good enough experience that they'll gladly go to checkout, hand you their credit card details, and pay you money. 

While it is especially important at the payment stage, if a potential customer does not feel a sense of trust, this can create major friction in the marketing funnel, it will be very hard to reel them back in again. 

3 key elements to boost trust 

  1. Secure payment options: Offering secure payment methods such as credit card processing, PayPal, or other trusted payment gateways instills confidence in customers that their financial information will be protected.
  2. Customer reviews and testimonials: Displaying genuine customer reviews and testimonials provides social proof of the quality and reliability of your products or services, helping to build trust with potential customers.
  3. Clear return and refund policies: Transparent and easy-to-understand return and refund policies reassure customers that they can shop with confidence, knowing that they have options in case they are not satisfied with their purchase.

Ensure product information accuracy

Providing clear and detailed product information is essential for guiding customers through the purchasing decision. If customers can't find necessary information such as product specifications, pricing, or availability, they may hesitate to complete their purchase. High-quality images, product reviews, and comparison tools can help customers feel confident in their decision.

3 strategies to maintain product information accuracy

  1. Regular updates: Ensure that product details such as pricing, availability, and specifications are regularly updated to reflect any changes accurately.
  2. Quality control measures: Implement processes to verify the accuracy of product information before it is published on your website or presented to customers.
  3. Customer feedback: Solicit feedback from customers regarding the accuracy and completeness of product information. This can help identify any discrepancies or areas for improvement.

Simplify the checkout process 

A lengthy and intricate checkout process often leads to customers abandoning their payment. Each extra step and form field prolongs the payment procedure and adds to the difficulty. Since customers prefer a straightforward and convenient process, any additional steps can negatively impact your user experience. 

Once customers have selected their desired products, the next marketing funnel friction point can occur when trying to add items to their cart. Complicated checkout processes, unexpected fees, or technical issues can deter customers from completing their purchase. It's important to streamline the process of adding items to the cart and provide transparency in pricing to minimize friction.

  1. Streamline form fields: Reduce the number of required fields to only essential information, such as name, shipping address, and payment details.
  2. Implement guest checkout: Allow customers to complete their purchase without creating an account, reducing friction for first-time buyers.
  3. Offer multiple payment options: Provide various payment methods, including credit/debit cards, digital wallets, and alternative payment solutions, catering to diverse customer preferences.
  4. Auto-fill and save information: Enable auto-fill features to populate form fields with saved information and offer the option to save details for future purchases, saving time and effort for returning customers.

For more tips, check out this article where we explore the different ways you can improve your checkout conversion rate.

Make sure the payment was completed

Even after your customer clicks the "pay" button, you’re still in danger of a lost deal. Many promising transactions fail due to card declines, with an average of 10% of checkout purchases failing at this crucial stage. Merchants often overlook this issue, but it can result in significant revenue loss and wasted marketing expenses. 

Bounce helps you detect false card declines and recover over 30% of them seamlessly and in real time, ensuring you maximize revenue and minimize losses.

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Growth Marketing
0
The top B2C marketing KPIs explained

A good B2C marketer tries to win over customers. But a great one wins over customers while hitting company goals, aka marketing KPIs (key performance indicators). 

Setting targets and strategies that support a company’s long and short-term objectives is the most important part of a B2C marketer's job. In this blog, we'll cover the key KPIs every B2C marketer should know to boost their business.

Understanding the marketing funnel

Marketing KPIs exist within the marketing funnel. To understand any KPI, one needs to be familiar with the marketing funnel as a whole. This is essentially a model that visualizes the path customers take from brand awareness to conversion (purchase). 

While there is no single marketing funnel that everyone agrees on, there are some basic stages that remain the same.

  1. Awareness: Introducing consumers to your brand and keeping it top of mind.
  2. Consideration: Educating consumers about your brand and its unique value proposition.
  3. Conversion: Convincing consumers to make a purchase decision.
  4. Loyalty: Building long-term relationships and turning customers into advocates.

Within the B2C sphere, the marketing funnel can also be referred to as the Purchase Funnel. Essentially this outlines the buyer's journey within a website, from the product page to adding items to the cart, and ultimately checkout.

Conversion rate

This is probably the most important metric or marketing KPI for measuring performance. Conversion rate records the percentage of users who have completed a desired action. 

It helps assess if a certain action or campaign was successful or not and indicates what actions need to be taken accordingly. 

Marketers or growth specialists can define their own different conversion rates; For example - one could measure the traffic to cart conversion rate (customers that arrived at a site and placed a product in the cart), or the level of traffic to a newsletter signup (the amount of visitors that ended up subscribing to a newsletter).

Traffic to Cart Conversion Rate: This measures the percentage of website visitors who add items to their shopping cart. It helps assess the effectiveness of product visibility, website design, and the ease of adding items to the cart.

Cart to Purchase Conversion Rate: This metric indicates the percentage of visitors who complete a purchase after adding items to their cart. It reflects the persuasiveness of product descriptions, pricing, checkout process, and overall user experience.

Traffic to Newsletter Signup Conversion Rate: This measures the percentage of website visitors who subscribe to the company's newsletter. It gauges the appeal of the content, incentives offered for signing up, and the placement and visibility of newsletter signup prompts.

Conversion rates are calculated by taking the total number of users who 'convert' (for example, by clicking on an advertisement), dividing it by the overall size of the audience and converting that figure into a percentage.

For example, to calculate conversion rate of visitors > free trial, you need to divide the number of free trial signups by the total number of visitors. So , if you have 500 visitors to a free trial campaign landing page, and 45 of those visitors subscribe to a free trial, you have a conversion rate of 45/500, or 9%.

Checkout conversion rate 

A subsection of conversion rate, and a major component in e-commerce businesses, this B2C KPI marketing metric refers to how many leads ‘convert’ into actual paying customers. This can also be referred to as macro-conversion, whereas a micro-conversion can refer to general engagement with the business (as mentioned above.)

Return on Investment (ROI)

While there are creative ways to cut costs and stay resourceful, marketing campaigns cost money, especially large ones aimed at attracting a lot of eyeballs. This is why ROI (return on investment) is crucial to your overall marketing costs and budget. ROI is the biggest determinant of cost allocation, with the goal being to get the most revenue possible with the least amount of investment.

Calculate ROI: Divide Net Profit by Cost of Investment, then multiply by 100%.

For example, if you invest $10,000 and generate $15,000 in revenue, with a net profit of $5,000, you would need to divide 5,000 by 10,000 and turn it into percentage - 50%.

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is the total expense of marketing to get a single customer. It covers the costs of marketing campaigns and other related expenses necessary to attract new customers, needless to say, it's important.

The CAC formula is calculated by dividing the total marketing costs by the number of customers acquired during the period. 

For instance, if your monthly marketing expenditure amounts to $5000 and you acquire 1000 new customers, your CAC would be $5.

AOV (Average Order Value)

A crucial metric within the e-commerce industry, the average order value (AOV) measures the average total of every order placed with a merchant over a defined period of time and is a key factor in business decisions for online stores. It is calculated by dividing the total revenue by the total number of orders.

To find the Average Order Value (AOV), you divide the total revenue by the number of orders placed. For example, if you made $4000 from 160 orders this month, your AOV is $25.

Calculation:

$4000 / 160 = $25

Lifetime Value (CLV or LTV)

Customer Lifetime Value (CLV or LTV) is a metric that represents the total revenue a business can expect from a single customer over the entire duration of their relationship. It's a crucial measure for understanding the long-term value that each customer brings to a business. CLV takes into account not only the initial purchase but also the potential for repeat purchases and the overall loyalty of the customer. The customer lifetime value formula is:

Customer Lifetime Value = Customer Value x Average Customer Lifespan. 

This gives you the revenue expected from an average customer over their time spent with your business.

Churn Rate and Retention Rate:

This time a pair of crucial B2C marketing KPIS: Churn Rate and Retention Rate are two key performance indicators (KPIs) used to measure customer loyalty and engagement.

Churn Rate: 

This metric represents the percentage of customers who discontinue using a product or service within a specific period of time. It reflects the rate at which customers "churn out" from a business.

The formula to calculate churn rate is as follows: Lost Customers ÷ Total Customers at the Start of Time Period x 100.

For instance, if your business had 250 customers at the beginning of the month and lost 10 customers by the end, you would divide 10 by 250. The result is 0.04. Then, multiply 0.04 by 100, which equals a 4% monthly churn rate.

Retention Rate:

This metric indicates the percentage of customers who continue to use a product or service over a certain period of time. It measures the ability of a business to retain its existing customers and prevent them from churning.

The formula for calculating retention rate is: ((Number of Customers at the End of a Period - Number of New Customers Acquired During that Period) ÷ Number of Customers at the Start of the Period)) x 100.

For example, if your business started with 500 customers, acquired 100 new customers, and ended after a certain period of time with 550 customers, the retention rate would be: (550 - 100) ÷ 500) x 100 = (450 ÷ 500) x 100 = 90%.

Tracking traffic source and volume

Web traffic sources are the various ways people arrive at a website.They give us clues about where our visitors come from, the volume of traffic, and how they discovered the content. Monitoring these sources and assessing the amount of traffic helps manage your online presence and decide where to invest resources wisely.

Typically, these sources include:

  • Direct Traffic: Folks who type our website URL directly into their browser or use a bookmark.
  • Organic Search: Those who stumble upon our site through search engine results after typing in relevant keywords.
  • Referral Traffic: Visitors who click on links from other websites, blogs, or social media platforms.
  • Social Media Traffic: People who find our site via links shared on social media platforms like Facebook, Twitter, and Instagram.
  • Paid Search: Visitors who click on ads displayed in search engine results.
  • Paid social: Users who click on ads or promoted content on social media platforms.
  • Email Marketing: People who click on links in emails or newsletters sent by us or our affiliates.
  • Display Advertising: Visitors who click on banner ads or display ads placed on other websites.

An example taken from hubspot traffic sources report

Click-through Rate (CTR) 

Click-through rate refers to the marketing metric that measures how often people click on a link, ad, email, or any piece of content in general. This tells us how successful the piece of content was in capturing a person's attention. The higher the click-through rate, the more successful the ad has been in generating interest. 

It's important to keep in mind that these numbers are typically low when referring to ads, as many internet users today have developed ad fatigue (the average American sees somewhere in the region of 4,000 to 10,000 ads every day.) A typical click-through rate may be only about two users per 1,000 views (or impressions), or 0.2%.

Email Open Rate

If your strategy involves email marketing, understanding your Email Open Rate KPI is crucial. This tells you how well your email marketing is working as it indicates the percentage of people who open the emails you send. Many digital marketers love to focus on the size of their email list, but what use is a huge list if no one's clicking? A higher open rate means your subject lines are grabbing attention, while a lower one might mean they need some tweaking.

Which KPIs do I establish?

When establishing which marketing KPIs for you are most important to your ecommerce store or B2C company, it's essential to look at the bigger picture and consider how different KPIs interact with each other. For example, while a high conversion rate may seem great, if the customer acquisition cost is too high, it could significantly impact your overall ROI. In this instance, you would ask yourself why the CAC is higher than usual or why your top line is low while conversion rates seem to remain stable.

By analyzing multiple KPIs together, you can gain a more comprehensive understanding of the performance of your marketing efforts and make better decisions.

The KPIs measured can be adjusted periodically based on your marketing priorities and the current challenges in your sales funnel. For instance, after launching a service or product, you may prioritize driving traffic to it. Once you achieve this, you can then shift your focus to converting the generated traffic. After successfully converting leads, you can redirect your focus to metrics like Lifetime Value (LTV) or the percentage of repeat customers, and so forth.

In conclusion, investing time and resources into understanding and leveraging B2C KPIs is essential for staying ahead in the dynamic realm of marketing and achieving sustainable success in today's B2C landscape.

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Growth Marketing
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How to improve your checkout conversion rate

Ever wondered why your online shoppers are ditching their carts at checkout? If you answered yes, you might be in the middle of a checkout conversion problem.

In other words, visitors come to your website to make a purchase, but leave before completing their purchase. This phenomenon is all too common in e-commerce, with abandoned cart rates having skyrocketed to 70% in 2023.

Fortunately, there are several effective tactics businesses can employ to tackle this problem head-on and reclaim your potential customers. In this blog, we'll delve into the top ways you can boost checkout conversion rates and up your revenue.

But first, why are people dropping out?  

There are many reasons why people visit your online store, make their way through a purchase process and then at the last minute totally change their minds. Here's a list of the typical reasons why you’re not getting those wins. 

  • Complicated checkout process: A lengthy or convoluted checkout process with too many steps or form fields can discourage customers from completing their purchase.
  • Account creation walls: Requiring users to register or create an account before checkout can be a barrier, especially for first-time visitors.
  • Lack of preferred payment option: If your store doesn't offer the payment method preferred by a customer, they may abandon their cart rather than compromise on payment security or convenience.
  • Lack of trust in website security: Concerns about the security of personal and financial information can cause customers to abandon their carts if they don't trust the website's security measures.
  • Unable to save the items for later: Some customers might wish to save items for future purchase or comparison, leading them to abandon their carts temporarily.
  • Website errors: Technical glitches or slow loading times can frustrate visitors and lead them to abandon their carts.

Top ways to improve your checkout conversions rate 

1. Simplify the checkout process

People appreciate a clear and intuitive buying process. However, many businesses fail to deliver on this. To increase conversion rates, aim to make the journey to checkout as simple as possible without unnecessary steps, forms, or pop-ups. To create a simplest checkout process: be mindful of general design and layout, and  keep the journey as quick (and painless) as possible. 

2. Offer guest checkout

As mentioned above, there should be minimal steps before checkout. A great technique to achieve this is by offering Guest Checkout options. This allows potential shoppers to bypass account creation and purchase items directly, thereby potentially preventing a 35% drop in transactions. Shoppers provide their information for their order, such as their name, shipping address, and payment details, without wasting their precious time creating an account on your website.

3. Optimize for mobile

Most folks these days shop on their mobile phones - 76% of adults (US), to be exact. If you're running an ecommerce store, you'd best make sure that you adjust mobile navigation so that your online store is fully optimized for the mobile experience. Key actions you can take include ensuring a highly responsive design, providing an optimal mobile view, and integrating payment options like Apple Pay, Google Pay, and PayPal, allowing users to complete their purchases with a single touch or click.

4. Display clear shipping fees

If you have global customers shopping from your online store, they probably want to see shipping costs before they click the pay button. Shipping costs can significantly affect prices, and purchasing an item without shipping costs can appear quite different at checkout. To avoid misleading customers, it's best to display clear shipping costs and available payment methods clearly on the checkout page. Doing this helps shoppers make better-informed decisions, ensures transparent pricing, and even boosts trust.

5. Communicate trust

Customers want to feel safe and secure when making purchases online. This includes having a reputable-looking website and displaying various badges for payment security, data protection, and purchase policies. Creating a trustworthy relationship with your customers boosts conversion rates. In fact, statistics show that 35% of potential buyers abandon a site without a security badge. These trust signals reassure customers that their information is safe and their purchase is protected.

6. Offer multiple payment options

Different customers have various preferences when it comes to payment methods. The Baymard Institute found that 6% of cart abandonments occur due to a lack of preferred payment methods. With more options, paying becomes more convenient, increasing the likelihood of completing a purchase. By offering multiple payment options, you make it easier for customers to pay in a way that suits their preferences and needs.

7. Use abandoned cart emails

Implementing an abandoned cart marketing strategy is crucial. A great way to do this is by  re-engaging customers through "abandoned cart emails." Setting up emails gently reminds customers about their abandoned carts, highlights the items left behind, and utilizes personalized tactics tailored to reflect their buyer interests. Additionally, offering exclusive discounts or special offers can entice customers to return and seal the deal.

8. Reduce card decline rates

Having your customer click on the "pay" button can still turn out to be a lost conversion. Countless good deals are lost due to card declines - in fact, an average of 10% of checkout purchases get thrown out right at this very last conversion stage. This problem often goes unnoticed by merchants, but it can lead to millions of dollars lost for your business, not to mention the wasted marketing costs. With Bounce, your ecommerce business can identify false card declines and recover over 30% of them in real time, ensuring you capture valuable revenue opportunities and minimize losses effectively.

Optimize checkout for success

Whether it’s confusing web design, or false card declines, improving your checkout process is vital for ecommerce success. With many factors leading to cart abandonment, streamlining the online checkout is crucial for retaining customers, building loyalty, and boosting revenue. By prioritizing checkout optimization, businesses can seamlessly guide customers through the buying journey and resolve common pain points that maximize value from your shoppers.

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Use Cases
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Reviving revenue: converting failed free-to-paid users into profitable customers

End of a free trial charges and their effect on your KPIs 

In today's subscription economy, numerous businesses offer free trial subscriptions to convert potential leads into paying customers. Companies offer users a free trial of their service or product, and in exchange, the user provides their credit card details. 

By capturing the user's payment information at registration, the company can ensure their users are high-intent, with a valid means of payment.

Yet despite this precaution, less than 50% of those free trial users are shown to convert to paying customers. According to our data, 20% of free trial churn is, in fact, due to payment decline. Of those end-of-trial payment declines, a significant part are, in fact, valid subscribers who experienced a false failed transaction. These are exactly the customers you are trying to onboard who enjoyed your free trial and wanted to move forward.  

When recovered, they can also help your business growth soar!

Growth impact: Free-to-paid user business impact 

End-of-trial transaction failures have an enormous negative impact on business revenue. And not just top-of-the-line revenue due to the user's final failure to convert. 

The impact of failed free trial conversions trickles down to just about every marketing KPI. 

Let's have a look:

  • Top-line Impact: Failed free-to-paid user conversion transactions directly impact your total revenue, leading to a loss of potential deals after the free trial.
  • Cost of Acquisition (CAC): Despite investing time and resources to get customers on board for their free trial, and having the customer reach the payment phase without canceling, a failed payment transaction means restarting this very challenging customer acquisition process, as well as an increased CAC for those customers you did convert.
  • Reacquisition Costs: When you are not able to charge your customers after they complete the free trial, you will need to work hard at getting them back to using your service, in many cases by offering them a significant discount or additional free trial. 
  • LTV: The denied payment process will affect the rate of your recurring customers and the total LTV, as these customers will stop the subscription cycle and not reach the next renewal phase, which is when you are actually starting to benefit from their payment. 
  • Conversion-to-paid Rate / Monetization rate: Customer loss post-free trial due to payment issues has a direct impact on your most important KPI - conversion! You want to see as many of your free trial customers converting into paying ones, demonstrating that they like your p[product or service and are willing to pay for it.

So how can you turn those conversion fails into absolute revenue wins?

Bouncing up free-to-paid customer conversions

Bounce helps grow business revenue by recovering failed trial conversions.

Our AI machine learning algorithms analyze millions of data points to identify valid transactions that were wrongly flagged and approve them. The transactions are saved, and the customer can use your service just like before, enjoying  a smooth payment experience. All in real-time, with zero risk for the seller.

Bounce can also increase end-of-free trial conversions by helping companies identify users that you will not be able to convert due to payment issues right at registration. 

Bounce Effect: 4% top-line revenue uplift

Our data reveals that customers who implemented Bounce to optimize end-of-free trial conversions benefited from an immediate 4% increase in top-line revenue. CAC, LTV, and funnel conversion rates - also drastically improved as well.

Here’s how Bounce helps customers capture lost free-to-paid conversion revenue and how it impacts their business. 

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Use Cases
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Subscription signup: unlocking hidden revenue streams

Onboarding new subscribers takes work. So does maximizing revenue.
Whether you're building and marketing a recurring SaaS subscription, digital service, or consumer goods, it requires a solid team effort.
Much has been written about how to drive a company's marketing wins and increase sales.
But what about recovering subscription signup losses?

Marketing, customer success and business execs understand the painstaking effort involved in guiding potential consumers through the funnel and investing time and resources to garner subscription signups.
Which is why nothing is more frustrating than watching those potential consumers arrive at checkout, and hand over their credit card details, only to have their payment declined. Potential subscription is lost.
It’s disheartening, and in many cases, it can be avoided.

The hidden cost of failed subscription signup 

Here's a fact: 15% of potential subscribers get rejected at signup due to card declines.

Simply put, for every 100 customers that enter their credit card details and hit “Subscribe”, only 85 will become paying subscribers.
That’s an astounding financial loss at the moment of conversion, especially when considering this next fact.

More than half of signup payment rejections are in fact valid subscribers. 

Of the 15% of subscribers that were rejected at signup, more than half (!) were in fact, valid consumers.
They were blocked or flagged and couldn’t complete the purchase, although you would be happy to have them as your subscribers.
This could be avoided and overturned with Bounce, which can take up to 30% of your signup declines and turn them into absolute wins.

Recovering lost revenue with Bounce

How does that translate into lost revenue?
It's about 5% of your top line.
5% of revenue, which, if not for a payment failure, would be part of your company's core revenue.

At Bounce, we help merchants recover failed subscription signups by seamlessly identifying and approving them in real time.
Our AI-powered engine uses machine learning to analyze tens of thousands of data points, identifying the good deals that were wrongly flagged as bad and instantly approving them.
With our integrated subscription win-back policy, valid users are auto-approved at the subscription checkout.

No wait time. No checkout friction.  No-risk. Your lost signup subscribers  are saved and enjoy a flawless signup experience.

From a company growth perspective, the wins don’t just stop at checkout.
They trickle down to many other areas, affecting a wide host of KPIs. Let’s have a look:

Company growth: the Bounce impact

  • Top Line Impact - Losing deals during subscription signup means less total revenue. These deals should’ve been yours.
  • Cost of Acquisition (CAC) - After investing in acquiring a new subscriber, facing a failed signup checkout means starting over and increasing the Cost of Acquisition. Less conversions -> higher CAC.
  • Retargeting Expenditure - Once these customers are declined, they are not going to come back easily. A failed subscription signup will result in spending additional marketing funds on retargeting campaigns to bring your consumers back.
  • LTV (Lifetime Value) impact - Negative experiences at subscription signup checkout directly decrease the overall Lifetime Value (LTV) of customers, as they will probably not come back, and will, of course, not reach the next payment cycle.
  • Conversion Rates Setback - Losing customers during subscription signup means lower checkout-to-paid conversion.
  • Purchase Size - Rejections at signup may lead prospects to rethink the size of their purchase. Even if they complete their transaction with another payment method, they’re far more likely to opt for a lower-priced product or service.
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Use Cases
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How Bounce improves card authentication

The authentication process and its effect on your KPIs

Card authentication declines happen more often than you think. 

At Bounce, we wanted to get to the bottom of it.
While mapping hidden and obscure spots of the payments industry, we uncovered something quite incredible -
up to 30% of online credit card authentication processes are denied.

This scenario frequently occurs when you allow your customer to try the product or service before paying for it. Within the context of free trial subscriptions and sign-ups, failed card authentication is a common occurrence.

During a trial sign-up, a merchant authenticates the user's card while allowing them to try out the product or service before payment.
Sadly, due to false payment declines, the merchant can inadvertently block the customer during the authentication step. This occurs after the customer has made the crucial decision about your product, provided the payment details, and all that remains is for them to complete the authentication process.
But it's precisely at this critical moment that you are losing them, and possibly for good.

The authentication process is both an opportunity and a challenge.
If the customer fails the authentication for no good reason, it will tarnish the customer's experience.

On the other hand, when done right, authentication gives the seller an opportunity to bypass certain customers who are less likely to become paying customers, thereby increasing conversion and top line.
Essentially, this process  increases the percentage of users that ultimately become paying customers.

Over the years we learned that many companies are not even aware of how many good deals they’re losing due un-authentication rates.
Many don’t see how common the problem is and how it affects a business’s performance and the marketing team’s KPIs:

  • Top-line - False authentication declines lead to lost customers, deals, and loss in revenue.
  • Cost of Acquisition (CAC) - Getting a successful user registration is a massive step, especially after all the marketing resources you spent on getting them there. An unauthenticated credit card deal puts you in a position to retarget and repeat the process, causing your CAC to spike.
  • LTV, retention and repeat customers - The negative effect of declined authorization process has a clear impact on LTV. The customer’s bad experience will result in them not coming back. In the case of free trial, they will clearly not turn into recurring revenue, as they are not even starting their journey with you. 
  • Conversion rates - Losing customers during the authorization process not only affects the specific authentication conversion rates but hinders the whole conversion - Leads/ Visitors > Free trial > customers.

How Bounce improves authentication rates

Here at Bounce, we've learned to identify false authentication authorization declines,
enabling us to save an average of 20% of deals that were wrongly rejected.
This results in a 7% increase in the total number of users progressing to the next stage of your funnel.

Our ML algorithm quickly identifies and approves good deals in real-time, saving the transaction and ensuring users can smoothly transition to become paying customers after authentication, without any roadblocks. 

By perfecting the authentication process, you can filter out unwanted leads and ensure you only allow leads with conversion potential to move forward.
It’s about balance - you need to make sure these good users are moving forward, while identifying those that are not going to become paying ones.

Unlike other marketing, growth or optimization tools, Bounce doesn’t require any additional budget or extra work after implementation.
There is no customization, monitoring, or any additional set up needed - All you have to do is relax and enjoy the absolute wins.

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Use Cases
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Bounce will increase your repeating buyers

Getting your customers to complete their first purchase is hard, and getting them to come back to make another purchase can be even harder. In many cases, your marketing costs on acquiring a new customer are so high, that you will spend more that you are getting back. This is why merchants today are focused on a good customer experience, that will make their customer want to come back to their store and buy again.

It is very frustrating that in some cases, even though you were doing everything right, that acquired customer will not turn into a repeating one. Declined payments are one of these cases, and it has a major impact on your KPIs.

Buyers that experienced an issue with their payment, are much less likely to come back to your store and turn into the loyal customer you are aiming for. Yet, failed payments often seem like something that is out of your control. Well, it’s not. 

Bounce’s solution ensures that those good customers will not experience the frustration of a payment issue. Our real time ML solution analyzes millions of data points to identify the good users in real time. The impact is clear - these users are not only completing their first checkout deal, they are also coming back to make further purchases. Our data show that customers that were approved by Bounce, have a ±50% more chance to come back, vs. the ones that experience a payment decline. This has an amazing effect on your LTV and top line.

9
Use Cases
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How Bounce increases subscription renewal rates

Hidden bumps in subscription renewal affects your KPIs

The power of a subscription-based business is clear: once customers join your subscription plan, either for a digital service or a physical product, they’ll stick around for as long as they’re happy with what they’re getting, without needing to actively engage with your checkout flow again. 

This provides sellers with revenue predictability, while offering customers a hassle-free, continuous supply of your product.

The problem is, subscription renewals often face payment issues which can result in decline rates of up to 50%.

This means that a satisfied customer who got to the next payment cycle can't ultimately pay the seller. 

Getting customers to the next payment cycle and completing it successfully is key for subscription-based services and products, as it has a clear impact on retention rates, and accordingly - LTV and Unit Economics and, CAC.

The impact of failed subscription renewals

Losing a customer over a failed transaction is less than ideal. This raises the CAC (Cost of Acquisition) as it forces you to essentially repeat the entire acquisition process. That  means retargeting that lead and pulling them back into your funnel. Not only does that lower your retention rates, but with more potential subscribers churning, your LTV rate drops too, which as you might have guessed, hurts your overall revenue

How Bounce improves subscription renewal rates

Our payment experts discovered that up to 50% of subscription renewals fail because of credit card declines. This highlights an important point for all merchants: credit card transactions can fail for different reasons, be it the company, the card, processors, or the bank. The main takeaway? The moment that happens, the seller is left with virtually no insight as to how that transaction could have even been salvaged. 

This is exactly why at Bounce we never underestimate a failed credit card transaction. Our ML algorithm meticulously analyzes tens of thousands of data points to uncover the real reason behind a renewal decline. Once that is established, we can identify the cause, and best of all, save them from slipping through your fingers. 

What happens under the hood?

  • If we find there’s a chance to save the deal, we operate at the backend to make it go through.
  • If we find there’s no way this renewal will ever be charged through this card, we will notify you, so you can work on other ways to bring this customer back to the payment cycle. 

From our experience, an average of 20% of the “almost lost” renewal deals can actually be saved with minimum effort and maximum wins.

More so, letting the subscriber know that the renewal didn’t go through, instead of trying to resolve the issue independently, may result in the customer ending the subscription altogether.

Bounce doesn’t require any additional budget taken into account. It also doesn’t require additional work after implementation. There is no need for customizing, monitoring, or defining anything. All you need to do is sit back and enjoy the absolute wins. Our guarantee policy involves 0% risk. We operate at the backend and approve the deals we identify as recoverable.  

Based on our experience, you will see an immediate increase of 5% in your top-line revenue. On top of that, all other KPIs - Retention, CAC, LTV will also drastically improve.

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Use Cases
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Bounce lifts your checkout top line

Checkout fail. It's a familiar pain for marketers.
After investing thousands of dollars in targeting and re-targeting, the excitement of a potential customer placing an order turns into frustration when they fail to convert into a paying customer.
And in many of those cases, it’s due to payment decline.

The hidden cost of checkout churn

Did you know? More than 10% of checkout purchases get thrown out of the funnel right at the conversion stage due to credit card declines. The user enters his credit card number, hits “purchase”, and receives a failed transaction notice.

Those failed transactions can translate into millions of $ lost for your business, not including the lost marketing costs.

Here's another nugget: 30% of failed checkouts can actually be recovered into a closed deal.
With Bounce’s AI-based payment solution, companies can save up to millions of dollars annually, gaining a higher return on their marketing efforts and lifting their top line by 5%!
The cumulative year-over-year impact of recovering lost checkouts is enormous.

It also goes way beyond immediate top-line revenue.

The fuller picture: understanding company growth impact

Let's explore how failed checkouts  influence your business's growth and performance:

  • Top-line Impact: Lost deals directly dent total revenue, affecting company growth.
  • Customer Acquisition Cost (CAC): Each lost deal not only hampers revenue but also resets the clock on acquiring new customers and increasing your average CAC.
  • Retargeting Costs: A failed checkout experience is likely to prompt increased spending on retargeting campaigns to re-engage users and target new potential ones.
  • LTV and Repeat Customers: A declined transaction at checkout leads to a bad user experience, and by that, you risk losing your customer permanently, impacting both the lifetime value (LTV) and the rate of repeat business.
  • Conversion Rates:  Checkout failures directly affect checkout conversion rates and the success of the overall marketing funnel, with fewer leads and visitors that turn into customers and repeat customers.
  • Purchase Size: Customers facing declined transactions tend to abandon their purchase initiative entirely. Of the few that do retry, they will often revisit their cart and remove purchases, resulting in a lower overall purchase value.

Unlocking lost checkout revenue with Bounce

Bounce helps companies prevent revenue loss and all other negative impacts of declined payments.
Our payment recovery platform uses ML to analyze millions of data points, identifying which checkout declines are valid and which ones should not have been declined. Our solution recovers over 30% of payment declines, in real time. 

Bounce seamlessly integrates into your existing checkout process, providing the user with a positive and smooth experience when identified as valid. We’re so sure of our data that the service is risk-free. Your customers enjoy a better checkout experience, and you enjoy a higher return on your marketing efforts.

Here’s how our checkout recovery helps our customers recover tens of thousands of dollars in lost checkout revenue.

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Success Stories
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Boosting Simply’s sign up rates by 5% and transforming free-to-paid conversions

Simply (formerly JoyTune) is a global subscription service that reinvented how people discover, learn, and share creative hobbies. The company’s mission is to spark joy and creativity by empowering people to “fall in love with new creative hobbies''. With millions of learners in over 180 countries and fast revenue growth, Simply has become a global subscription service. Yet despite their fantastic success, their conversion funnel had an issue: a large percentage of failed Piano app subscription signups were failing to convert.

20% of users that already downloaded the app, and tried to sign up,  pay and use the app, were declined due to a payment issue. 

While the growth, marketing and UX teams were hard at work driving new subscription sign-ups, hundreds of potential valid subscribers were being rejected monthly.

That's when Roie Shiloah, Head of Growth, started the process with Bounce.

"We knew we were losing tens of thousands of dollars in potential revenue each month. We needed a trustworthy solution to optimize the signup subscription process."

We worked hand-in-hand with Roie and the Simply team to understand the lifecycle of their subscribers, the payment issues encountered, and how to optimize their sign up processes.

We then implemented our ML-powered solution to identify incorrectly flagged signup subscribers. Users that previously would have been rejected at sign up now enjoy a seamless subscription experience, and the Simply team’s top-line revenue enjoys a marked boost.

But the process didn’t stop there…

Bounce transforms Simply's free-to-paid conversions

To garner interest and gain new subscribers, Simply offers Piano registrants a free trial of their app. Simply users register and provide their credit card details to begin their free trial. When the trial period is over, Simply then processes their credit card and converts them into a paying user. If for whatever reason the payment transaction failed, Simply would then retry the charge using one of their payment provider’s existing solutions.

The challenge:

Even after retrying to charge the failed transactions, 30% of Simply’s free trials were still being declined. The marketing team had worked so hard looking for learners with passion to learn Piano, nurture their interest with compelling retargeting ads, drive them to Simply’s sign-up page, and convert them into free trial learners, all the while ensuring a fantastic onboarding experience and the ultimate in customer care. 

But then, at the pivotal moment of conversion from free-trial to loyal brand learners, Simply’s learners were experiencing false declines. ROI lost. Marketing investment wasted. Revenue crushed. The results were seriously hampering the company's growth efforts.

The solution:

We analyzed thousands of failed end-of-trial payment transactions to understand which, if any, could be recovered. We discovered that 5% of the deals that were not recovered by Simply’s current process can still be recovered and converted by Bounce. That means a 2% lift to their free trial conversion.

Given the large number of free trial users that sign up for Simply each month, the recovered free trial conversion translates into a grand additional user revenue. 

“Bounce is a ‘growth secret’ - our total signups revenues grew by 5% and our end-of-trial charges/renewals grew by 2%. The uplift is immediate, requires zero risk or budget, and doesn’t require any work after implementation.”

The Simply team feels safe to consult us with any questions or problems they might have, and we at Bounce learn a great deal from this collaboration and develop new ways of problem-solving. We are always brainstorming new ways to increase Simply’s revenue and conversion rates, amplifying the growth impact of our partnership.

“Bounce transparency enables complete trust. We recommended Bounce to colleagues from other b2c companies.”
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Success Stories
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How Bounce improved authentication rates for Lingopie and lifted their entire business KPIs

How Bounce improved authentication rates for Lingopie and lifted  their entire business KPIs

Lingopie is the world's only language-learning application that uses real TV shows and movies to help its users learn a new language. They make language learning fun and as simple as watching your favorite TV show.

One of Lingopie’s amazing achievements is their long-lasting relationship with their users. 

While joining their subscription service, Lingopie users go through an authentication process before starting their free trial. The purpose of the authentication process is to prevent fraud and attain a valid form of payment from the user.

Having a reliable, smart and efficient authentication process that validates the users is key to achieving long lasting relationships. 

Before Lingopie started working with us many of their potential users did not comply with the authentication process.

We got to partner with Samuel Medalie, CFO of Lingopie and found that many users were failing the authentication stage due to faulty declines. These users could have been approved but were not making it past the initial authentication.

We integrated with Lingopie’s current authentication process, keeping the existing user journey. Putting our solution to work, our ML algorithm identifies good users who were about to be blocked by card declines. These good users were able to smoothly pass the authentication process and move on to the free trial phase, ensuring a positive experience.

After joining Bounce the number of new users completing the authentication process increased, allowing more users to initiate their journey with Lingopie and transition into paying customers.

"Bounce increased our authentication rates by 8%. Customers are automatically approved, so the user experience is seamless."

This has a huge impact on Lingopie’s subscribers, which increased by 5% as well as other KPIs such as top line, LTV, conversion rates and retention.

"Bounce helped us provide our new users with a smooth authentication experience. More users start their journey with us and stay for a longer time”

While improving Lingopie’s authentication process, we were also happy to advise them with other payment-related decisions they faced, such as optimizing their subscription process. We simply see our customers as partners and their success is also our success.

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Success Stories
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Scale turned millions $ in declined checkout and renewals into revenue

Scale is a California based, tech-driven company. They build next-generation health, wellness education, and products that address some of the world's most common health issues. They sell their products online as a subscription base or as a one off purchase and have a checkout process in place.

They knew they had challenges around checkout and subscription conversion and were hoping to find a solution to mitigate that.

We partnered with Hannah Blum, Head of Marketing Strategy, and Chris (Christapor) Arzoumanian, Senior growth product marketing manager, two industry experts.  

Diving into Scale’s processes

Scale offers various types of supplements, in 5 different brands, both one-time checkouts and subscription refills. When reviewing Scale’s system, we ran a comprehensive analysis of their payments, to see which failed payments could be saved. Through our ML system, we found that 20%-30% of their customers were being wrongly rejected at the time of subscription refill/ renewal (and could be saved), due to a variety of reasons totally out of Scale’s control. We got to work and implemented our solution.

Shortly after, by cutting out a portion of those card declines, we saw a stream of steady and increased revenue, overall raising their KPIs. 

As more deals were seamlessly approved in real-time, a number of things took place. Customer satisfaction levels grew, retention rate improved, and even the ticket size per transaction increased, thanks to frictionless payment experiences. 

“We grew our subscription retention rate by 2.4%.”

Bouncing up lost checkout deals

Renewals were just the beginning - while analyzing Scale Media’s checkout transactions, they realized how many of their customers were actually unable to complete their purchase - 10% (!) of their customers were being rejected at checkout, due to different reasons. 

We applied our proprietary machine-learning algorithms on Scale’s data, using millions of data points, and identifying which declined checkout transactions should be recovered. With our real-time ML model and zero-risk policy, we were able to recover a full 30% of Scale’s declined checkout transactions.  Bounce’s auto-recovered checkout deals lift Scale’s top line by almost 3%.

As Scale’s checkout experience improved, the average user purchase size and total number of purchases increased. Instead of losing potential users to failed checkout processes, Scale was now retaining its leads and customers at much higher rates.

“We work closely with bounce and see bounce’s team as partners. We constantly consult the team with any payment related decision”.

What it’s like to partner with Bounce

Every decision related to payments is a multifaceted process for any company. At Bounce, we thrive on collaboration to enhance your company's payment experiences. Our approach is to seamlessly integrate with your processes, providing valuable insights and guidance. 

The successful collaboration with Scale's talented team has driven the desired results – improved metrics and happy customers. Together, we were able to showcase the power of a collaborative approach in transforming payment experiences.

"As for the decision to work with Bounce, it was a pretty straightforward one. We took zero-risk and saw an uplift of 3-5% on our checkout generated revenue"

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