Jme is optimizing billing processes and achieving unparalleled payment and cost-efficiency with Cleeng’s Merchant
NHK Cosmomedia America launched Jme, a direct-to-consumer (D2C) streaming service that brings Japanese content to a North American audience, in April ‘24. In just a few months, Jme has supported the onboarding of subscribers and focused on increasing retention and payment success- both crucial steps to revenue growth, particularly for a newly launched D2C streamer. In this blog, we will outline the steps and results taken to build a future-proofed solution for Jme, which has led them to say this about our work together:
"Working with Cleeng as our MoR has been a game-changer for us. Their expertise in handling payments and preventing fraud has streamlined our operations and helped us achieve results surpassing industry standards. It’s allowed us to concentrate on growing our content and connecting with our audience, knowing that Cleeng has the financial side covered,"
shared Tsunehiko ‘T’ Takeuchi, Vice President.
How partnering with Cleeng delivered record KPIs
NHK Cosmomedia America’s decided to delegate handling its payments to Cleeng as the Merchant of Record (MoR) for Jme.
Here are the results:
Result #1: 98% order success rate
With Cleeng’s Merchant, Jme experienced higher conversion success, reduced fraud risks, and lowered chargebacks. This is due to Merchant’s advanced AI-powered string fraud detection feature which analyzes new fraud patterns in real time and updates risk rules for Jme accordingly.
This feature, combined with Merchant’s extensive shopper DNA records and CAPTCHA tool prevented users from making payments with multiple cards after several failed attempts in a short time, reducing unauthorized payments, ultimately boosting order success rates.
Thanks to these features, Jme's order success rate clocks in at an impressive 98%, significantly surpassing the average seen amongst Cleeng customers before launch.
Result #2: 0.2% chargeback rate
The chargeback rate indicates the percentage of transactions disputed by customers with their bank or credit card company. If a subscriber feels they are incorrectly billed and complains to their financial institution, payment processors reverse customer payments and impose costly fines on the broadcaster, which range between $10 and $50 per chargeback. Consequently, broadcasters face significant losses from forfeited revenue, penalties, and the potential suspension of their payment processing capabilities.
According to industry benchmarks, streaming companies have an average chargeback rate of 0.84%, over four times higher than Jme’s 0.2%.
Jme maintains this low chargeback rate through Merchant’s strategic process, which involves rigorous fraud detection, careful dispute evaluation, and comprehensive documentation to improve dispute outcomes. This approach minimizes chargebacks, protects revenue, and reduces associated costs.
Result #3: 0.5% involuntary churn rate
Cleeng’s experience customizing dunning settings for broadcasters based on their unique needs helped Jme achieve low involuntary churn.
Payment retries and notifications were configured based on subscription due dates, thanks to the expertise of Cleeng’s Merchant team. Jme provided initial details about their customer profile, which enabled effective setup and management of payment processes, resulting in high payment success and a low involuntary churn rate.
The involuntary churn rate represents the percentage of subscribers a streaming platform loses due to factors beyond their control, such as payment failures, rather than the customer's deliberate decision to cancel the service. Payment failures typically occur due to expired credit cards, insufficient funds, bank declines, or other technical issues during payment processing.
According to industry benchmarks, streaming companies, on average, deal with a 2.5% involuntary churn rate. Jme’s involuntary churn rate eclipses the industry average by five times at just 0.5%.
Jme has reached record KPIs by leveraging Cleeng’s solutions to streamline operations and boost cost-efficiency. By minimizing chargebacks, reducing involuntary churn, and optimizing payment processes, Jme has not only surpassed industry benchmarks but also achieved significant cost savings. This enhanced efficiency allows Jme to invest more in content and audience engagement, driving overall growth and profitability.
Want to see how you can leverage Merchant for payment success on your streaming platform?
