As a business owner you will no doubt wear multiple hats. Marketing, sales, and customer support to name a few.
Anthony from apnTech, a successful merchant in the digital services industry fit that profile. Having extensive experience in eCommerce, Anthony knows what it takes to make and scale an online business.
As his business grew, he had less and less time to spend regularly reviewing the status of his merchant account, even though he felt there was room for improvement.
The success of APN led Anthony to open up more merchant accounts serving different needs and as such his problem compounded. Some of those accounts were close to dormant with fees eating away at the earnings.
Moreover, many of those accounts had reserves that were left unchecked and APN had lost tracked at how much “cashflow” they had stowed away. CF that could be used to start a new projector re-invest in an existing one.
Through a valued-based partnership with Chargeback Gurus, Anthony was referred to us to quickly assess the status of his accounts and address his initial concerns.
Our initial approach was to understand the structure (fees and setup) of his accounts as well as the level of communication he maintained with the merchant processors.
We then did a deep dive into the statements to understand:
1. What and how much he was being charged.
2. How much revenue was being held (reserves) every month.
We also reviewed the initial contracts to better understand the Terms of Agreement which outlined many facts that do not often show up on monthly statements.
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By reviewing the structure of Anthony’s merchant accounts, we were able to uncover two huge wins:
1. Get back nearly $20,000 in reserves held by an almost dormant merchant account.
2. Help Anthony negotiate a more profitable effective rate and transparent pricing model.
3. We were also able to re-structure his existing accounts to lower his monthly reserves, saving him even more money in the long term.
With this outcome, Anthony is now able to allocate funds he didn’t know he had to kickstart a new project or fund an existing one.
Not only that, but by understanding the fees in the pricing structure of his current MIDs, he is now on a processor pricing model more in-line with his type of product offering with a better effective rate.
The objective was to create and deliver a Chargeback Mitigation Strategy. We took a top-of-the-funnel approach. Starting with a complete review of the sales funnels, customer acquisition channels (paid and organic campaigns), post sale and customer support channels. We quickly found a number quick fixes that provided easy wins and bought Tracy and the team some time to implement some longer term solutions that we identified around pricing and customer support. We also onboarded them with the best suited dispute alert platform to bring down their overall chargebacks.
By taking the time to understand the “Chargeback Chain”, the multiple touch points that can result in friction and lead to a chargeback, we were able to help Tracy and team regain operational control. We created a strategy focused on increasing transparency, customer support and leveraging the best tools to bring those numbers down.
We quickly divided their testing into micro and macro split tests with respect to the traffic they’d be able to push each time.
We focused on needle-moving tests and
1) how long to run them for, and
2) How to call them.
We used leading and lagging KPIs to help call each test once we had enough statistical significance and a post-split test analysis was used to get total profit per visitor and see the customer’s whole buying journey.
Not only were we able to more confidently “call” split tests but we now had accurate data to support the decision to either push the variation live, kill it, or iterate on a new version.
Furthermore, we now had a proven method to create new ideas faster and discard ones we thought would not move the needle fast enough and far enough.
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