The Numbers Guy Looks at the Daily Retry Feature in SiteWatch® ARM

Over 72% of monthly pass customer credit cards that were declined on the first try are successfully recharged, resulting in $7,278 of “rescued revenue” for this car wash.

The Quick Overview:

Like all car washes that automatically recharge passes, this East Coast full-service has its share of credit cards rejected every month. Rejections may happen because a card has expired, the customer has exceeded the credit limit, or the bank has issued a security hold. When monthly pass customer credit cards fail to clear on the first try, the owner of this full-service uses SiteWatch ARM to retry them automatically for 14 days.

In October 2008, when the Numbers Guy put this wash through his data cruncher, 5.8% of its monthly pass customer credit cards failed to recharge on the first try. This represented a loss of 241 customers. However, the wash’s owner uses the SiteWatch ARM Retry Feature to retry credit cards multiple times over a 14 day period. As a result, 174 of the rejected cards were eventually cleared; allowing the wash to retain 72.2% of the pass customers that otherwise would have been lost. This resulted in $7,278 of “rescued revenue” that the wash earned from recharging cards that were initially rejected.

 

Here Are The Numbers:

Wash Profile

Two Full-Service Sites

on the East Coast

Length of Time Offering Monthly

Passes

Close to 3 Years

Number of Active

Pass Holders

4,155

Recharge Method

Passes Recharged First Day

of Every Month

Type of Plan

Unlimited

Monthly

Number of Credit Cards

Rejected On First Attempt

241

(5.8% of total)

Number of Rejected Cards

Accepted After 4 Days of Retrying

104

% of Rejected Cards Accepted

After 4 Days of Retrying

43.2%

Number of Rejected Cards Accepted

From 5-14 Days of Retrying

70

% of Rejected Cards Accepted

From 5-14 Days of Retrying

29%

Total Number of Rejected

Cards Accepted

174

% of Rejected Cards

Ultimately Accepted

72.2%

Total Number of Cards Ultimately

Rejected After All Retries

67

% of Rejected Cards

Ultimately Rejected

1.6%

 

 

 

The Bottom Line From The Numbers Guy:

There are many reasons why a monthly pass customer’s card will fail to be approved the first time. Many of them have nothing to do with the customer’s willingness or ability to pay for membership in the pass plan. Car wash operators who do not retry credit cards after they have been rejected the first time are missing an opportunity to retain valuable customers. This is clearly demonstrated by the fact that the wash in our study was able to retain almost 3 out of 4 of its pass customers by retrying cards over a 14 day period.

Another point we can infer from this study is that it pays to retry cards repeatedly, rather than just once. Although the wash in our study recaptured most of its customers in the first four days, a good share (29%) of rejected credit cards were finally approved after 5 to 14 days of trying.

It’s important to keep in mind that during the 14 day retry period, our study car wash allowed customers with rejected cards to continue using their club plans. This avoided negative customer relations; you do not want to be in a position of recharging a customer’s credit card the day after he or she was prevented from using the monthly pass plan because a credit card was rejected. By retrying cards, the wash is also performing a valuable service for its customers, who may not realize the credit card they have on file is out of date or otherwise invalid, and want to continue enjoying the benefits of having a monthly pass.

Harold Guthrie, denizen of the digital world, is the DRB Systems numbers guy. A graduate of the University of Akron with a degree in mathematics, Harold toiled for IBM before he came to our company in 1994. A consummate numbers guy, he has conducted numerous engineering studies on a wide variety of SiteWatch products. When it comes to figuring out the meaning of figures, Harold is clearly our number one choice. He can be reached at 800-336-6338.

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The Numbers Guy Looks at the Daily Retry Feature in SiteWatch® ARM

Thumbnail Over 72% of monthly pass customer credit cards that were declined on the first try are successfully recharged, resulting in $7,278 of "rescued revenue" for this car wash.

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