Nowadays transacting online has become an integral part of our lifestyle. No one usually carries cash, they perform transactions online using different payment methods, be it credit card, or debit card, using payment applications like Google Pay, Apple Pay and more.
This is because it is easy and convenient for them to just click and perform transactions, rather than going to the bank and withdrawing cash.
However, sometimes, the transaction declines or fails, which indirectly affects the customer’s experience. The majority of customers do not retry an online transaction and leave the product in the cart. Based on research by Finance Magnets, 62% of customers who faced failed transactions, never returned to the business website for repurchasing the product or service. Big loss to businesses right?
To avoid such a scenario with your business, you must adopt best practices for ensuring the reduction of failed payments.
In this blog, we will look at multiple reasons for failed payments in Salesforce, how they impact your business and how you can address them.
Let’s get started!
When a customer is making a purchase, and the transaction gets declined or is unsuccessful due to any reason, it refers to a transaction failure.
This equally affects both the customer and the business. For the customer it might be a negative experience and for a business it could result in subsequent loss. Think of it this way: Suppose a customer is making a purchase but the transaction gets declined or fails, they might not care to re-perform the transaction and might leave the product abandoned in the cart. Disheartening right?
Therefore, you need to understand the reasons behind a failed transaction.
There is never a single reason for all failed payments, the reasons might always differ. Below we have explained some of them:
Failed payments can significantly impact the revenue of your business. It directly affects the sale of your business. As we discussed earlier, failed transactions might result in customer loss, ultimately losing revenue.
Furthermore, you did not receive the payment for the product or service you provided to the customer. Also, it might not be a rare case but might happen frequently, which adds up making it a big amount that the business has not received.
When a customer faces a failed transaction, it might lead to frustration and loss of trust towards the business. This can highly affect loyalty and customer retention.
Another case could be when the transaction is declined but the amount gets debited from the customer’s bank. This kind of experience frustrates the customer as the amount is gone and the order remains unplaced. Additionally, the customer rethinks before re-transacting: What if the same thing happens again and the amount is deducted? Also, banks usually take 3-4 business days to credit the failed transaction amount in the customer’s bank, til then, they need to wait.
Failed payments in Salesforce often lead to increased costs for businesses. To handle the queries and issues of the customers, businesses need additional customer service resources. With this, the hiring and training cost adds up.
The foremost thing you should do is to verify the payment method that the customer is paying through and the details of the same. Make sure you are allowing the customer to edit their details during the checkout process. This helps the users to confirm that they have entered the correct details and that the transaction is successful.
It might happen that an unauthorized user is performing some unusual transactions to mislead you. This could be done by performing fake transactions that get visible in your system and later demanding a refund of the same stating a reason. You do not want to fall into this trap!
Thus, you can consider various fraud detection tools that use machine learning and behavioural analysis to detect fraudulent transactions.
This option could be your ultimate saviour. If a customer is unable to perform a transaction using a certain mode of payment or a specific method of payment, they have other options lined up. They can choose any other of them to perform payment.
It is your responsibility to make sure that your software is working properly and is accepting payments. That, it is performing all the activities optimally as it should be. To ensure the same, you can frequently test-run your software. With this, you can identify if there are any potential issues and take action to resolve them.
By performing all these activities, you can reduce the risk of payment at a large pace. However, this would require a sufficient amount of your time and effort. But, with an automated solution, you can boost automatic payments and manage failed transactions.
Choosing an automated solution like ChargeOn, for handling failed transactions in Salesforce can bring several advantages to your business. How? Let’s see!
With this solution integrated into your Salesforce org, you get notifications for failed transactions. This solution automatically detects when a transaction failure has occurred and notifies the user. It helps the user to promptly gain a follow-up from the customer and take necessary actions.
You can send users payment links after a transaction fails to reinitiate it. This would ensure you got the money against the service or product you have provided.
Not just this, but it provides you with other features that help in minimizing revenue loss and cost, and ultimately improving user experience.
The automated solution sends notifications to your customers for recurring transactions. This would help in notifying your customers that their subscription is going to end soon and they need to renew it, further eliminating revenue loss and improving customer experience.
Failed payments can be very frustrating for the customer as well as the merchant & doesn’t matter if you’re using Salesforce or not. However, by following the practices for failed payment recovery, you can ensure that you get the money back and this phenomenon is reduced. With the same, opting for an automated solution to manage failed transactions in Salesforce, can greatly help your business.
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