- Gravy is a payment recovery platform for subscription-based businesses. The company was founded by Casey Graham and his partner Renee Weber in 2017. Graham created the platform after finding it difficult to recover failed credit card payments and reduce customer churn rates.
- Gravy makes money by selling its payment recovery service to businesses on a subscription basis. Customers pay a flat fee of between $997 and $8,000 depending on the total transaction volume.
- Gravy’s single product features several add-ons and is seamlessly integrated with the client’s pre-existing payment infrastructure.
Before founding the company, Graham owned an online business built on recurring subscriptions and memberships. Despite experiencing tremendous growth, he found it difficult to recover failed credit card payments and reduce customer churn rates.
Failed payment recovery was a problem echoed by many of his colleagues, yet none could justify the cost of employing an in-house team to deal with the issue. This caused industries to be dominated by less expensive automated software and questionable debt recovery tactics, with most companies only able to recoup around 15% of failed payments.
Gravy specialists also use a warmer communication style with more of a human touch since customers tend to respond to this form of outreach positively. They may also entice the customer to stay with the company through discounts, stay bonuses, and custom arrangements for COVID-impacted businesses. These strategies help the client retain its customers, which is a much easier task than acquiring new ones.
Gravy clients on average recover 70% more failed revenue when compared to other approaches. The company has an ambitious goal to return $1 billion to small businesses by 2023, with just over $400 million returned thus far.
Gravy revenue generation
Gravy makes money by selling payment recovery services to businesses on a subscription basis. Customers pay a flat fee of between $997 and $8,000 depending on the total transaction volume.
Once payment has been received, Gravy seamlessly integrates with the client’s payment processor, subscription-manager, and any other product they use to manage regular payments such as Stripe, Braintree, or Keap. Company specialists then set up a Gravy channel on Slack to communicate with the client’s staff.
The company claims it is committed to working with clients of all sizes. As a result, it encourages prospects to contact the company for a custom quote.
Nevertheless, there are two general options:
- Standard – the core plan that is ideal for start-ups and medium-sized businesses. Features include personalized failed payment recovery, monthly recovery reporting, payment processor optimization, volume-based pricing, and a dedicated, full-time retention team.
- Standard add-ons – for customers who desire extra functionality there are several add-on features, including qualitative churn reports, historical payment status, user access and permission reporting, and Facebook group management.
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