How Perlego recovered 76% more revenue from failed payments with Butter
Discover how Perlego, a leading EdTech company, boosted customer retention and increased revenue recovery.
5%
Absolute lift in ARR
76%
relative lift in revenue recovery
51%
relative lift in invoice recovery
“Partnering with Butter was a game-changer for us. We always knew there was an opportunity to drive more revenue by reducing failed payments, and Butter made it easy to do. We’re now growing even faster than before, and, just as important, we’ve improved our subscriber experience.”
The Challenge
Legacy retry solution lacks the ability to drive growth
As a fast-growing subscription-based business, Perlego constantly evaluates their tools and processes to drive efficiency and uncover new growth opportunities. While analyzing their business, Perlego’s leaders recognized that the legacy payment recovery solution they used was inefficient. To increase profitability and protect their profit margins, the digital library needed a new subscription solution with advanced capabilities.
“We looked into our payment stack and discovered we were losing a significant amount of revenue because our legacy recovery solution was inefficient,” said Perlego CEO Gauthier van Malderen. “We were positive we could drive more growth by partnering with a solution provider that offered true machine learning.”
The Solution
Perlego selects Butter to drive global impact
Perlego’s search for a payment recovery solution led them to Butter.
What set the platform apart was its machine-learning-based approach to payment recovery, self-optimization capabilities, and positive impact on global transactions.
Machine-learning-based approach that drives better results
Unlike other payment recovery solutions, Butter analyzes hundreds of data points associated with every transaction and determines the best course of action for each category of failed payments. This tailored approach has been proven to reduce more failed payments than standard one-size-fits-all solutions.
Self-optimization for improved performance
Using data-driven logic, Butter continuously optimizes their recovery models to recover more failed payments in fewer retries. This approach drives optimal recovery while freeing Perlego’s team to focus on core business and revenue-generating activities.
Global expertise to boost authorization worldwide
Operating in over 175 countries, Perlego sought a payment solution that operated across borders. Butter’s payment recovery solution adapts retry strategies to local norms, maximizing successful authorization worldwide.
The Results
Perlego sees a 76% more recovered revenue with Butter
After migrating, Butter implemented a merchant-specific, machine-learning strategy that drove more revenue and enhanced customer retention. The results:
- 76% increase in recovered revenue.
- 51% lift in invoice recovery.
- 5% absolute lift in ARR.