Automatic credit card updating. Its time has come.
Are you leaving money on the table? Not only money lost due to credit card declines, but lost time and effort chasing down current card information from club members? Credit card updater services are now available in the marketplace and should be considered a value-added service for your winery.
Obtaining and keeping your club members is top of mind for most wineries. We know that many have processes in place to reduce the number of bad cards. Automatic emails can be sent 30, 60 and 90 days prior to processing which results in updates to some cards. Then after the club is processed, emails go out and phone calls are made to club members to attempt to obtain updated information. Why not reduce the time and hassle and make payment collection a bit less cumbersome?
To determine just how much money was being lost due to card declines, we did an analysis of 10 wineries that use the Vin65 platform to process their club shipments. These wineries processed clubs of varying sizes from just over 300 members to clubs with an excess of 1300 members.
The results were eye-opening. The average decline rate across the 10 clubs was 10%. The average club package price was $245.38. Based on the fact the credit card updaters successfully update 30% of declined cards, the amount of updated credit cards came to 242. This equals a whopping $59,381 worth of total club package revenue that would have been processed the first time around. Wow. That’s an average recovery of $5,938 per winery!
The updater service captures more payments but it also reduces the number of times a winery must reach out to a customer to obtain updated information. Plus, consider the extra time taken to update the contact records that can be saved. This give you more time to concentrate on selling more wine.
Information about the Vin65 updater service for MasterCard and Visa can be found by clicking here.