How Simple recovered 70% more revenue
Learn how Simple, a nutrition app in the health tech industry, partnered with Butter to optimize payment recovery, resulting in substantial revenue increases, reduced churn, and improved user retention.
70%
increase in revenue from recovered payments
40%
decrease in average time to recovery
65%
lift in invoice recovery
Overview
Simple is a health and wellness application dedicated to helping individuals achieve their fitness goals through nutrition. With over a million users on iOS and Android, Simple offers personalized fasting plans, data-driven insights, and motivation to simplify nutrition and improve health. As the global intermittent fasting market grows, valued at $10.7 billion in 2020 and projected to reach $12.2 billion by 2027, Simple sought to enhance its customer retention strategies.
Quick Jump
“Our partnership with Butter has been a game-changer for Simple. We've not only seen a remarkable 70% increase in revenue from recovered payments but also a significant boost in payment recovery speed. Butter's expertise has truly transformed our payment processes, and this success reinforces our commitment to delivering scientifically backed solutions for our users' fitness goals."
The Challenge
Simple was losing over 30% of total annual revenue to failed payments
Simple faced challenges common to the diet and fitness industry, including high customer churn rates and seasonality effects on user engagement. Involuntary churn, primarily driven by payment failures, was on the rise as the user base expanded. Before engaging with Butter, Simple was losing more than 30% of their annual revenue to failed payments. Even with a conscious payment recovery approach their recovery rate for these failed invoices was only 12%.
The Solution
Butter’s personalized ML approach ensured recovery speed and efficiency
Simple partnered with Butter to minimize avoidable payment failures, reduce involuntary churn, and retain valuable long-term users. The company needed a tailored solution that could account for seasonality and provide fast payment recovery so affected subscribers were not left struggling to meet their fitness goals . Butter deployed a personalized machine learning model that learned and tackled, among other things, the nearly 40% of Simple’s failed payments due to insufficient funds. The solution also dynamically retried each individual failed payment to optimize for timing and payload data, tackling the low and slow, only 12% within the first 7 days, recovery rate facing Simple.
The Results
Butter's payment recovery solution led to a 70% increase in revenue from recovered payments
Butter helped Simple improve their revenue and achieve faster payment recovery:
- Revenue Improvement: Thanks to Butter, Simple significantly improved its ability to collect payments. Before, about 40% of payments failed due to insufficient funds. Since partnering with Butter, they increased their success rate for this particular error code from 19% to 29%, boosting revenue recovery by 10%. Overall, in the first year of collaboration, Butter helped them recover 65% more invoices and brought in 70% more revenue from failed payments.
- Faster Payment Recovery: Simple also sped up its payment recovery process with Butter's help. They reduced the average time it took to recover payments by 40%. Notably, they improved payment recovery speed by 100% within the first week of the dunning window
The partnership between Simple and Butter has proven highly beneficial in optimizing payment recovery processes, reducing involuntary churn, and ultimately enhancing the company's revenue and customer retention efforts. Simple's commitment to providing its users with scientifically grounded solutions for their fitness goals is now supported by a more robust payment recovery system, ensuring that users can continue their health and wellness journey without disruption.