How Unbounce Combats Churn With Recurly
Overview
Unbounce is the world’s leading landing page and conversion intelligence platform. Apart from its popular no-code landing page builder, Unbounce offers AI-powered solutions to help its customers create high-converting marketing campaigns, including its Smart Copy and Smart Traffic tools. Since 2009, it has helped over 70,000 customers across various industries—including Zola, Indochino, and Thinkific—power 1.5 billion conversions to date.
Unbounce needed a better way to manage its involuntary churn
Most of Unbounce's customers have self-serve accounts and pay by credit card every month. With the company processing so many recurring card-based payments across different plans, it was impossible for Unbounce's account managers to reach out to every individual customer whose payments had failed to figure out the exact reasons for payment declines.
When Unbounce looked at its churn rates, it found that 20% of its cancellations were due to involuntary churn from billing errors or expired cards. The company's top priority was to automate the process of correcting these issues before they snowballed and made Unbounce’s involuntary churn rate even worse.
Unbounce needed a solution that could not only automatically handle the complexities of recurring billing across its rapidly scaling user base, but also provide deeper insight around involuntary churn to help its team deliver a customized, effective customer experience to at-risk customers. That’s when the company turned to Recurly.
Creating insights-driven customer experiences with Recurly
Recurly’s Revenue Optimization Engine helps Unbounce attack involuntary churn through a multi-pronged approach, based on over a decade of rich transaction data. The Unbounce team uses key features of the Revenue Optimization Engine to recover revenue. For example, Intelligent Retries, which uses machine learning to schedule a transaction retry attempt at a time when it is most likely to succeed, accounts for 25% of its recoveries.
The results speak for themselves. Using Recurly, Unbounce has seen a 19% YoY increase on recovered revenue from involuntary churn—a number that is only expected to grow over time.
For Sally VanPeteghem, an Account Manager at Unbounce, Recurly's Revenue Optimization Engine helps Unbounce tackle involuntary churn in two ways. First, its automated revenue recovery features mean the Unbounce team doesn’t have to reach out to every single customer whose payments have failed. Second, the results of these automated techniques inform the Unbounce team's dunning strategy for reaching out to customers who require a more personalized touch.
Using information from the Revenue Optimization Engine, coupled with information from Recurly’s Monthly Recurring Revenue and Dunning Effectiveness reports, VanPeteghem and her team can more easily determine the right messaging to use, the best time to reach out to a customer, and the optimal number of emails to send out. Plus, having valuable context from Recurly before reaching out to customers has helped Unbounce maintain better PCI compliance because its customers don't have to needlessly share sensitive information. With this approach, 50% of accounts are recovered by day two.
I love the Recurly interface and usability. It's simple, organized and clear.
As Unbounce evolves its strategy, Recurly’s powerful, flexible features remain an essential part of its toolkit to deliver the best customer experience possible. It’s currently testing out messaging segmentation and piloting new dunning campaigns for an even more targeted approach.
Conclusion
Unbounce is not only helping its customers create compelling landing pages that convert. With Recurly, the company is able to deliver unparalleled, insights-driven, and highly personalized customer experiences that keep users coming back.
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