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The payment success rate metric tells you what proportion of attempted payments ended in a successful transaction. You can use this step of the Retention Journey to track the success rate of both initial and recurring payments.
There are key differences between these two types of transactions. It is important to look at them in turn.
Initial payments refer to the first attempted collection of payment for a new subscription. It’s success rate is measured as follows:
Measurement: The initial payment success rate is the percentage of attempted first-time collections of payment for a new subscription that are successful.
Recurring payments are charged to your customer’s payment method on a regular schedule.
In return, your customer gets continued access to your service. Simply put, recurring payments are the fuel for your subscription business. The efficiency of your recurring billing process has a large impact on the success of your business overall.
Problems with your recurring billing process can cause payments to fail unnecessarily. This doesn’t just cost you that individual payment. It also costs you all future payments that subscriber may have made.
Measuring Recurring Billing Success Rates
In Cleeng’s retention journey, the recurring payment success rate is calculated on the basis of the success or failure of an individual payment, not on the success or failure of an individual payment collection. To understand the difference, see the following example:
- 4 dunning attempts are scheduled for collection of payment for a monthly subscription
- The first 3 attempts fail
- The 5th attempt succeeds and payment is made
This could theoretically be regarded as a 25% success rate (1 of 4 attempts succeeded). However, what matters most is whether the payment was successfully made or not. In this example, the Dunning setup succeeded in collecting the monthly payment for the subscription.
Therefore, the Recurring Billing success rate metric will count this as one successful payment.
Measurement: The recurring billing success rate is the percentage of scheduled, recurring payments that were successfully collected.
If you want to view success rates for individual methods, use the payment method filter, or view the payment method success chart on the Pay page,