Wyze boosts recovered subscription revenue by 50% with Butter in 8 months

Wyze was losing 9% of their total revenue to failed payments

Wyze knew that mitigating involuntary churn was crucial for success, but after a massive spike in growth, solving the issue became the smart home brand’s No. 1 priority. They were losing nearly 9% of their total revenue to failed payments and needed a quick and effective solution to continue to grow. Complicating the project was Wyze’s challenging tech stack, which included various gateways, e-commerce tools, and multiple subscription management partners.

“We started growing like crazy, and there was an immediate need to streamline our tech stack and start solving failed payments for our customers and our business,” said Seth McBee, Senior Product Manager at Wyze.

Initially, Wyze contemplated developing their own in-house recovery solution. However, the company soon realized that the complexity of solving failed payments required the expertise of knowledgeable payments professionals, a realization shared by many other brands.

Instead of wasting resources, Wyze chose to focus on what they did best – developing smart home solutions – and partner with a trusted third-party provider to solve their payments issues.

“We’re experts in building smart home technology and understanding our customers, and we wanted to continue doing that instead of failed payments,” Seth said.

Wyze maximizes payment recovery with Butter’s turnkey solution

Wyze’s search for a payments recovery solution started and ended with Butter. The platform was highly recommended by the brand’s subscription management solution, Recharge, and numerous other eCommerce professionals who used Butter to maximize profits.

What set Butter above other payments optimization solutions was the platform’s:

• Turnkey integration with Recharge, enabling brands to get started in days, not months.
• Integrations with other leading subscription management platforms and e-commerce solutions, allowing brands to continue to use Butter as they update their tech stack.
• Data-driven approach to solving payments issues and self-optimization.

“We needed something with a low development cost that would plug and play and solve the problem,” Seth said. “Butter came highly recommended, so we knew it was the right fit.”

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Turn-key integration with Recharge

Speed was crucial to Wyze. Every day, they were losing thousands of dollars and needed to stop the bleeding. They didn’t have time to wait.

“The reason we chose Butter was very simple,” Seth said. “It integrated into our tech stack. Their strong engineering team allowed us to integrate with virtually no code.”

“It was honestly a little bit too good to be true,” Seth continued. “We virtually didn’t do any dev work. We have millions of customers, and many are long-term subscribers. We are not a small client. The fact that it just worked has been impactful.”

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Future-proof integrations with leading e-commerce solutions

Wyze continually evaluates eCommerce solutions to determine the best tech stack for their business. They required a payments solution that would integrate with their current subscription management platform, payment service provider, as well as other leading e-commerce solutions.

Butter’s flexibility assured Wyze that they wouldn't require a new payments solution as they evolved and streamlined their tech stack.

“It’s given me the confidence that if we ever move to another tech stack, Butter will be able to support us,” Seth said.

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Data-driven approach to maximize payments

Butter’s machine-learning technology goes beyond simple payment retries. The platform analyzes hundreds of data points associated with a transaction to determine the most effective retry strategy for each failed payment category. This data-driven approach allows Butter to continually self-optimize recovery, resulting in more successful recovered payments with fewer retries.

Wyze boosts recovered subscription revenue by 50% and sees 5X ROI with Butter

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Wyze saw significant improvements after eight months with Butter. They drove more subscription revenue, improved their invoice recovery rate, and boosted acquisition. The results:

• 50% increase in recovered subscription revenue
• 43% invoice recovery rate
• 5% lift in initial success rate
• 5X ROI

Tapping Butter to power payments optimization also enabled Wyze to deliver an enhanced subscriber experience.

“Partnering with Butter allowed us to lean into improving our subscriber experience and subscriber management,” Seth said. “We can build better ways for people to buy subscriptions, upgrade subscriptions, and cancel subscriptions. We can spend resources on solving voluntary churn, win-back campaigns, and messaging.”