Recognized as a leading health-food brand in the US, this company specializes in low- sugar cereals, cookies, and snack mixes that cater to a healthier lifestyle. Its products grace 23,000 American homes and are available at 130,000 retail locations worldwide, in addition to its online presence. The brand is committed to integrating nutritious food into daily life, focusing on comprehensive wellness objectives that include weight management, gut health, and overall microbiome vitality. Central to its mission is enabling consumers to reduce sugar intake without compromising on the joy of eating their favorite snacks.

The Problem

As the brand continued its successful expansion in the direct-to-consumer (D2C) and online markets, it faced a prevalent challenge in the e-commerce sector: an increase in payment failures. These disruptions in payment processing affected the consistency of subscription shipments, impacting customer experience, satisfaction, and subsequently, revenue growth. The brand acknowledged the necessity of an effective payment optimization strategy to mitigate passive churn — a situation where customers unintentionally churn due to failed payments. This recurring issue impacted not only immediate revenue but also compounded month-over-month, significantly affecting long-term customer retention and revenue. The culmination of these industry-wide challenges resulted in a notable 4% decrease in monthly net profits, emphasizing the need for a comprehensive solution.

How They Solved It:

To tackle the challenges, the customer integrated a suite of FlyCode products designed to optimize payment processes and reduce churn:

Churn Audit Tool

The journey began with the FlyCode churn audit tool, which provided a comprehensive analysis of churn levels and potential recovery rates. With this tool, FlyCode identified critical data points and forecasted recovery scenarios, laying the groundwork for payment optimization. The tool not only offered actionable insights to reduce churn but also presented the data in easily understandable visualizations, aiding stakeholders in making informed decisions.

Payment Optimization Engine

Next, the brand deployed FlyCode's AI & ML payment optimization engine, a plug-and- play solution that seamlessly integrated with their subscription management and payment systems. This advanced technology pinpointed the optimal times to process payments, thereby reducing failures. It automatically retried failed transactions, ensuring timely order fulfillment and bolstering customer retention. This proactive approach significantly decreased payment failures and enhanced the overall customer experience.

These initiative are not just about mitigating payment issues; it’s also about reinforcing customer trust and loyalty.

Smart Recovery Emails

Finally, FlyCode enhanced the customer experience with smart recovery emails, a component of its tailored dunning strategy. This approach fine-tunes communication, sending emails only when necessary and at the most opportune times, minimizing inbox clutter while maximizing the likelihood of customers updating their payment methods. By utilizing the brand's own domain, these important emails are easily identifiable and trusted by customers, prompting timely action. Each email is thoughtfully personalized, mirroring the brand's unique aesthetic, to foster a more engaging and reassuring customer interaction. This strategic, customer-centric approach streamlines the recovery process, reflects the brand's dedication to service excellence, and ultimately smoothens the customer journey.

The Impact

By integrating FlyCode’s suite of products into their eCommerce stack, the customer achieved a substantial uplift in their financial and operational metrics. Here are the key outcomes of this partnership:

1. Increased Payment Recovery Rate: A notable rise of 21% for their recovery rate, ensuring improved retention and a more predictable revenue stream

2. No-Brainer ROI for Revenue Boost: A 6-times ROI of net new revenue, reflecting substantial revenue growth at a price that’s justifiable

3. Enhanced Customer Experience: Improved service through AI & ML driven payment optimization and personalized smart dunning emails.