SAN MATEO, Calif.--(BUSINESS WIRE)--
Independent research results show Vindicia can help companies enhance their customer retention rates, increase revenues, and improve overall customer lifetime value
Vindicia, an Amdocs company (DOX) and a leader in business-to-consumer subscription management solutions, today released a new commissioned Forrester Consulting study quantifying the Total Economic Impact and benefits of Vindicia Select. The study found that Vindicia Select helps companies recover significant numbers of terminally failed payment transactions, reduce pressure on billing teams, enhance customer retention rates, increase revenues, improve overall customer lifetime value, and protect brand value. Over three years, a composite organization received a net present value (NPV) of US$76.5 million.
“The ability to successfully acquire and retain subscribers is critical to growing and sustaining a subscription-based business,” said Sharath Dorbala, Head of Vindicia, an Amdocs company. “Unfortunately, many companies are losing millions of dollars in revenue each year because of preventable customer churn. This study demonstrates that by leveraging Vindicia Select, companies can recover terminally failed payment transactions and capture revenue that would otherwise be lost. Beyond that, companies also benefit from revenue from extended customer lifetime.”
The Total Economic Impact™ Of Vindicia Select study was developed based on interviews with five customers using Vindicia Select to manage involuntary customer churn. By using the information provided in the interviews to create a composite organization, Forrester calculated both the quantifiable and the unquantified benefits from actual use of Vindicia Select.
Below are a few of the key findings:
- Revenue recovered from terminally failed payment transactions totaled $6,249,477 over three years. The composite organization consistently recovered 18 percent of terminally failed payment transactions with Vindicia Select.
- Revenue from extended customer lifetime totaled $70,412,965 over three years. On average, users increased their subscription length and continued to pay for an organization’s services for 6.2 months after Vindicia Select recovered a terminally failed payment transaction.
- According to the interviewed organizations, Vindicia Select protects brand value by ensuring continuity of service for users. All five customers noted that when an organization is forced to cut off service, it creates a negative user experience.
- The interviewed organizations also noted that Vindicia Select enables them to avoid having to continually invest in finding new customers to maintain revenue.
According to one of the customers interviewed, a director of global payments for a provider of B2C and light commercial software solutions: “We rely on Vindicia Select as a revenue generator because it increases our billing success rate. [Another business unit] just launched Select, and they would absolutely say that they now rely on it. It is a revenue generator. If you’re using CashBox or you’re only using Select, it’s a very good billing resource.”
Vindicia Select utilizes machine learning, subscription intelligence, and sophisticated algorithms to address the problem of payment card declines, automatically resolving up to 30 percent of failed terminally payment transactions that other strategies are unable to recapture.
In addition to Vindicia Select, Vindicia also offers CashBox, a complete SaaS subscriber management and billing platform for subscription business success. CashBox is the ideal solution for recurring-revenue businesses because it supports all aspects of the subscription business life cycle.
Vindicia, an Amdocs company, offers comprehensive subscription management solutions that help businesses acquire and retain more customers. Providing much more than just a billing and payments system, the company’s SaaS-based subscription management platform combines big data analysis, strategic consulting and proprietary retention technology. Vindicia provides its clients with more recurring revenue, more customer data, better insights, and greater value throughout the entire subscriber lifecycle. That’s why they call us the Subscription People. To learn more visit www.vindicia.com.
Amdocs is a leading software and services provider to communications and media companies of all sizes, accelerating the industry’s dynamic and continuous digital transformation. With a rich set of innovative solutions, long-term business relationships with 350 communications and media providers, and technology and distribution ties to 600 content creators, Amdocs delivers business improvements to drive growth. Amdocs and its 25,000 employees serve customers in over 85 countries. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.0 billion in fiscal 2018. For more information, visit Amdocs at www.amdocs.com.
Amdocs’ Forward-Looking Statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs’ ability to grow in the business markets that it serves, Amdocs’ ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2018 filed on December 10, 2018 and our quarterly 6-K form furnished on February 19, 2019.