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Case Study: Output reduces credit card declines and involuntary churn with Recurly

Output Case StudySourced & dated by Case Study Desk
Key facts · TL;DR
Company
Output
Industry
Music Software
Challenge
High payment decline rates in a new subscription business
Headline result
Output cut credit card declines 45% and saw 90% of customers return after adding Recurly's pause feature

Key results

-45%
Credit card decline reduction
after implementing Recurly
90%
Customers returned after pause feature

The challenge

Output, a music software company, entered the subscription market and faced a significant payment decline problem, with credit card decline rates approaching 30%. Failed payments drove involuntary churn and threatened recurring revenue as the company scaled its subscription offering.

The solution

Output implemented Recurly to manage subscription billing and route payments across different gateways to reduce failed transactions. The company adopted Recurly's pause feature as an alternative to cancellation and extended its dunning window from seven to fourteen days.

We gained visibility into what's happening at the most crucial point in our business: collecting money.

BZ
Brian Zarlenga
General Manager, Output

The results, in context

After implementing Recurly, Output saw a 45% decrease in credit card declines. The company also reported that 90% of customers came back after being offered Recurly's pause feature, and the longer dunning period reduced involuntary churn.

Products used

Recurly Recurly Subscription ManagementRecurly Recurly Revenue Recovery