Benefits of the Great Authorizations Decline Reduction Playbook
Benefit 1: Reduced Attrition
Each payment decline introduces unnecessary friction in a customer relationship. Often these declines lead to “Moments of Truth” when a customer decides it is a convenient time to cancel service, or the decline could result in “involuntary churn” where customers are cancelled through no action on their part. Either way, increased attrition impacts profits and subscriber growth.
Benefit 2: Reduced Customer Care Expense
Each decline may result in an incoming phone call, a decline letter, a mailed statement, and a possibly collection efforts. These customer care expenses will rise significantly after Data Breaches and during the EMV Chip Card Conversion. Efficient payment processing will help keep care costs down.
Benefit 3: Reduced Accounts Receivable
Declined payments delay cash receipts resulting in an increase to Accounts Receivable.