DTC brands don’t realise this but they can lose up to 20% of revenue to failed payments. Imagining reducing these failures at scale. This could easily add up to 10000s of dollars saved every month.
About The Patch Brand
The Patch brand is an emerging DTC brand that has quickly gained a loyal customer base. It was founded by a group of friends that saw issues with supplements and decided to start a brand to tackle it.
The Patch Brand has come up with a very innovative product that makes it easy for your body to absorb nutrients and makes you feel your best everyday.
And what’s the best way to sell a vitamin patch? By building stunning product pages with subscription widgets that clearly stand out.
The Challenge: Payment failures resulting in revenue loss
The Patch Brand had migrated from Recharge to Loop because we were the best available alternative to Recharge in the Shopify ecosystem.
Sustaining a successful subscription program involves a lot of moving parts. Along with a good subscription model, you also need a smart dunning management system that ensures high payment success rates.
The Patch Brand was getting a lot of payment failures on their subscription orders. Their subscribers were not aware that their credit card payments on subscription orders were not going through.
The Solution: Loop x Attentive for timely SMS reminders
With Loop & Attentive’s deep integration, Patch Brand set out to reduce their payment failure’s systematically.
Patch Brand set up 5 failed payment retries through our dunning system.
Next they wanted to figure out a way of communicating to subscribers when their subscription payments failed.
This is what they did:
Patch Brand used Loop’s deep integration with Attentive to notify customers about their payment failures via SMS.
The SMS text contained a one-click login link to Patch Brand’s customer portal (password-less/OTP-less) where subscribers could update their payment information.
The first sms sent by Patch Brand to their customers saw a high CTR of 12%.
This encouraged Patch Brand to send more SMSes for payment retries to their customers.
The Result: Payment failures reduced in no time
Patch brand started using the Loop X Attentive integration from 1st November, 2022.
Comparing the revenue lost due to payment failures between October 2022 & November 2022, Patch Brand was able to reduce payment failures by 65% and realise more than 94% of their revenue (for subscription orders).
The CTR of the SMS campaign on failed payment was ~12% in just 1 month. Customers found it very convenient to use one-click logins to update their payment details via SMS.
It all ends well for this wellness brands!
DTC brands like Patch Brand that use SMS as an engagement tool can make great use of Loop X Attentive’s deep integration to reduce their payment failures and realise higher revenue.