Ever see a random charge on your credit card statement and think, “What the heck is this?” 🤔 You’re not alone. That exact scenario was happening to 37signals, LLC—a company behind popular tools like Basecamp and Highrise.
Customers didn’t recognize the name on their statements, couldn’t remember what they bought, and immediately called their credit card companies to cancel the charge. The result? A flood of chargebacks that cost 37signals money and caused headaches with their bank. Not exactly ideal. 😬
But here’s the genius part—they implemented one small tweak that slashed their chargebacks by 30%. 🎯
The Game-Changing Move
It all came down to following the billing rules and being crystal clear about their charges. Here’s what they did:
- Updated the Credit Card Statement Name:
Instead of sticking with the confusing “37signals, LLC,” they changed it to:
“37signals-charge.com 800.xxx.xxxx IL” - Redirected Customers to a Clear Explanation Page:
- Customers who didn’t recognize the charge could visit 37signals-charge.com, which had a simple landing page explaining:
- What the charge was for.
- The products or services tied to the charge.
- Next steps if they still had questions.
- Customers who didn’t recognize the charge could visit 37signals-charge.com, which had a simple landing page explaining:
- Added Direct Support Links:
To make things even easier, they included a payment support form on the page, so customers could quickly get help without jumping through hoops.
Why It Worked:
- Clarity is King:
Confusion leads to frustration, and frustration leads to chargebacks. By giving customers a clear and easy way to understand their charges, 37signals eliminated confusion upfront. - Proactive Problem-Solving:
Instead of waiting for customers to call their banks, they gave them a simple, self-service solution—no waiting, no hassle. - It’s All About the Details:
Credit card billing rules are specific for a reason. Using proper formatting (like 3, 7, or 12 characters for the company name and 4, 8, or 13 characters for the description) ensured their charges made sense on statements.
The Results?
- Chargebacks dropped by 30%—a massive win for their bottom line. 💥
- Customers got clarity, reducing frustration and improving trust.
The Takeaway:
Sometimes, the simplest tweaks make the biggest impact. Clear communication—whether it’s on a credit card statement, a landing page, or an email—can transform a frustrating experience into a seamless one. 💎 When in doubt, make it stupidly clear. It pays off. 💡
Source: signalvnoise.com