🦄 Butter: Recovering lost subscription revenue

According to Butter’s website, over 3 billion people worldwide have lost access to services they wanted to use due to accidental subscription cancellations. It amounts to more than $443 billion in lost revenue a year. Butter’s CEO Vijay Menon first began to recognize this problem through his roles at Microsoft, Dropbox, and Scribd. A lot of his time was spent working to eliminate accidental cancellations, like ones that occur due to payment failures and incorrectly configured cancellation flows. It doesn’t sound like it should be a big problem, but when a company’s revenue scales, so does the likelihood of these cancellations. The impact on revenue can mean losing millions of dollars from otherwise satisfied customers. While some customers might take initiative to try and resubscribe, this isn’t always the case, and frustration can drive users to competitors. Butter is designed to fit seamlessly into a company’s payment flow. It offers a number of no-code integrations with payment providers, and it does its payment analysis quietly in the background. If a payment fails, it checks a variety of factors around the failure before deciding how to handle it best. On average, Butter claims to increase ARR by 5% through its payment fixes. It may seem simple, but the numbers are promising.