Masivo Media (MM) sells memberships for magazines, ID theft protection, discount savings and telemedicine, to the subprime demographic (Merchant Category Code 5966). MM primarily sells over the phone and their monthly products retail for $15 to $35 per month, with an AOV (Average Order Value) of $26.
Before reaching out to FlexPay, MM was recovering 10% of credit card declines, reattempting them on a recurring schedule. “Because Masivo serves the subprime marketplace,” expands President Noam Egosi, “we routinely run into a 40% credit card decline rate. Since many of these transactions are falsely rejected—so theoretically salvageable—we developed an in-house system for recovering these customers, and managed to consistently salvage one out of ten (10.0% recovery rate) on our own.”
Thanks to an existing integration point, FlexPay was enabled on MM’s Orange (CRM) platform, causing all rejected transactions to be routed through FlexPay’s AI-driven, decline salvage engine. “Because implementation involved adding a number of MIDs and bundles, the activation process did take a little longer than we expected, but our teams worked well together to make it happen,” explains Egosi. “Before learning about FlexPay, we didn’t even know that decline-salvage firms existed, to be honest. When we learned that FlexPay’s fees are only charged on additional recovered customers, it was an easy decision for us at Masivo.”
Fees are only charged on additional recovered customers, it was an easy decision for us…
Following FlexPay’s integration, MM’s salvage rate rose from 10.0% to a staggering 42.4% average since March 2019, representing a 324% performance improvement. As a subscription business, this notable spike in recovery has also produced a 12% jump in precious LTV (Lifetime Value), and increased MM’s bottom-line profitability by 50%. “I tell everybody that will listen to us, to use FlexPay,” Egosi enthusiastically beams. “We’re big fans.”