We have the lowest quoted payment churn rate
Payment churn rate, what’s that? Well, if you’re collecting recurring payments from customers, whether that be by credit card, Direct Debit, bank transfer, mobile payment or any other method, then you want to be receiving as close to the due amount as possible. If you have a churn rate of 5% then you are effectively losing 5% of your revenue and potentially 5% of your customers, since when a payment fails there is the task of reinstating a successful payment and often this relies on an action by the customer to affirm their details.
Some payment methods have a higher payment churn rate compared to others. For example, in the case of recurring payments credit card has a typical churn rate of 13%. Direct Debit traditionally has a better churn rate, with some bureaux quoting an average of 3% and the majority don’t even provide this level of transparency. At SmartDebit, our churn rate is industry-leading at 1.5% in 2020 and declining year-on-year as our processes get better and better.
SmartDebit customers benefit from industry-leading payment success rates, with levels of active and passive churn reduced.
*GoCardless average churn rates https://gocardless.com/guides/posts/subscription-success-metrics/
**SmartDebit average churn rates for 2020
In simple terms, SmartDebit customers collecting £100,000 per year by Direct Debit will be banking £98,500, whereas those using recurrent card payments will only be banking £87,000.