Protected.net Reduces Customer Churn and Captures Lost Revenue with Vindicia Select
Vindicia helps leading antivirus software company increase revenue by over $2 million
Vindicia, an Amdocs company and a leader in business-to-consumer digital services monetization, announced that Protected.net is successfully using Vindicia Select to recapture almost 16% of failed payment transactions, resulting in approximately $2 million of additional annualized revenue.
Protected.net provides advanced online security protection through a wide range of security tools and applications to keep users safe. The company’s product suite has protected 7 million users in the digital world, along with their devices and families over the past 12 months alone.
Like many other subscription-based businesses, Protected.net has the challenge of customer churn and involuntary cancellations. These payment failures often occur as a result of incorrect or outdated credit card information, such as an expired card or billing address change, resulting in the automatic cancellation of a customer due to non-payment.
With Vindicia Select, Protected.net has dramatically cut its involuntary churn rate, leading to increased retention and longer customer lifetimes. Further, because Vindicia Select’s technology automatically fixes failed transactions, customers maintain seamless and uninterrupted access to the Protected.net service.
A recent Forrester Consulting study found that Vindicia Select helps companies recover significant numbers of terminally failed payment transactions, which in turn reduces pressure on billing teams, enhances customer retention rates, increases revenues, improves overall customer lifetime value and protects brand value. Over three years, a composite organization received a net present value (NPV) of approximately US$76.5 million [of incremental revenue], according to the study.
Vindicia Select’s technology applies machine learning to analyze vast data sets and extract invaluable customer insights. When applied to failed transactions, Vindicia Select discovers the reason for the processing failure and takes corrective action to resolve the issue. After the client resubmits the information, they are then able to successfully complete the customer’s payment. Additionally, through Vindicia Select’s insights organizations can better predict customer motivations and create additional revenue through more personalized offers.
“Any subscription business that accepts card payments knows that failed transactions can have a significant impact on overall churn rates,” said Daniel Short at Protected.net. “That’s why every subscription business needs the power of Vindicia Select to reduce churn, increase revenue and eliminate the negative effects that intrusive customer recapture efforts have on the overall consumer experience. Vindicia Select is a technology that has truly transformed our business.”
Protected.net is also benefitting from the tight integration between its payment processor, Paysafe, and Vindicia Select. This integration brings together the unique capabilities of Vindicia Select with Paysafe’s payment processing and merchant acquiring solutions. The strategic relationship enables customers like Protected.net to successfully process an increasing volume of regular recurring payment transactions by automatically resolving previously failed credit card payments.
“We are extremely pleased that Vindicia Select is playing a critical role in Protected.net’s rapid growth by making it easier for their customers to make recurring payments,” said Sharath Dorbala, head of Vindicia, an Amdocs company. “We look forward to helping Protected.net further reduce churn, achieve greater recurring revenue and extend the lifetime value of their customers.”