In today’s rapidly evolving digital marketplace, businesses face the dual challenge of retaining customers while driving revenue growth. A critical yet often overlooked factor in addressing these challenges is the efficiency of payment processing systems. Payment orchestration has emerged as a pivotal solution, streamlining payment processes to enhance customer retention and boost revenue. Leading this transformation is BridgerPay, a global payment operations platform designed to optimize payment experiences across industries.
The Role of Payment Orchestration in Customer Retention
Customer retention is a cornerstone of sustainable business growth. According to Cell Point Digital, even a modest 5% increase in customer retention can lead to a substantial revenue boost ranging from 25% to 95%. A seamless and efficient payment process is integral to achieving this retention. Complicated or unreliable payment systems can frustrate customers, leading to cart abandonment and diminished loyalty.
Payment orchestration addresses these issues by unifying multiple payment gateways and methods into a single, cohesive system. This integration ensures that customers have a smooth and flexible payment experience, accommodating their preferred payment methods and reducing the likelihood of transaction failures.
BridgerPay: Enhancing Payment Operations
BridgerPay exemplifies the advantages of payment orchestration through its comprehensive platform. By connecting businesses to over 1,000 payment providers and methods, BridgerPay enables companies to offer a diverse array of payment options tailored to various customer preferences. This extensive connectivity not only enhances the customer experience but also facilitates expansion into new markets without the need for extensive development resources.
A notable feature of BridgerPay is its proprietary Bridger Retry™ technology. This system intelligently retries declined card payments by routing them through alternative providers in real-time, seamlessly increasing approval rates without disrupting the customer experience. In 2023, the company reported rescuing up to 30% of declined transactions globally. This capability directly translates to increased revenue and improved customer satisfaction, as fewer transactions are lost due to payment processing errors.
Impact on Revenue Growth
Efficient payment orchestration directly influences a company’s bottom line. Businesses can see a significant uptick in completed sales by reducing cart abandonment rates and ensuring successful transactions.
For instance, the travel industry faces a cart abandonment rate of nearly 79%, often due to complex payment processes. Streamlining these processes through payment orchestration can recapture a substantial portion of potential sales. After all, 93% of customers are willing to make repeat purchases with companies based on the experience of exceptional customer service.
Moreover, offering a variety of payment methods caters to a broader customer base, including those who prefer alternative payment solutions. The rise of buy-now, pay-later (BNPL) services exemplifies this trend. In the U.S., BNPL now accounts for over 7% of e-commerce sales, up from 2% in 2020. Financial and payment companies report significant increases in this feature, especially during Cyber Week:
- Splitit reported volumes were up 62% in the week that ended with Cyber Monday.
- Klarna saw a 26% increase in orders from Black Friday to the following Sunday.
- Afterpay saw a 10% increase from Friday through Monday.
Integrating various options can attract customers who might otherwise forgo a purchase, thereby driving additional revenue.
Case Studies Highlighting Success
Several businesses have experienced tangible benefits from implementing BridgerPay’s payment orchestration platform:
- Due to limited technical resources, Luxury Escapes, an online travel company, faced challenges integrating local payment providers. By partnering with BridgerPay, they seamlessly integrated multiple payment service providers across various markets, leading to up to 45% of orders in some months coming through these new partners. Notably, more than 70% of these buyers were new customers, indicating successful market expansion.
- Zalora, a leading fashion and lifestyle e-retailer in Southeast Asia, sought to optimize its payment methods across the region. With BridgerPay’s platform, Zalora was able to quickly integrate specific payment methods for each region, enhancing the customer experience and increasing revenue.
Optimizing Payments for Long-Term Business Success
In an increasingly competitive digital landscape, a seamless payment experience cannot be overstated. Payment orchestration is vital for enhancing customer retention and driving revenue growth. Platforms like BridgerPay offer businesses the infrastructure needed to optimize payment processes, reduce transaction failures, and cater to diverse customer preferences. By prioritizing efficient payment systems, companies can foster stronger customer relationships and achieve sustainable financial success.
