Executive Summary

Many subscription businesses quietly lose several percent of monthly recurring revenue to failed payments and ineffective recovery flows; this problem is felt by an estimated 2,000,000 subscription companies that currently spend roughly $2,400 each per year on recovery and retention tooling. The consequence is predictable revenue leakage and higher CAC because lost customers must be reacquired rather than retained. You could build a SaaS orchestration layer that detects failed payments, classifies failure causes using richer Stripe/Braintree metadata, and executes intelligent retry schedules, card-updater integrations, automated omnichannel dunning, win-back offers, and continuous A/B testing — all exposed through an API and lightweight SDK for fast integration. A clear ROI dashboard and experiment framework would let finance teams measure incremental recovered MRR and justify the spend. This market looks timely: the subscription economy is still expanding so absolute failed-payment events are increasing, payment APIs now surface much richer failure signals, and companies under pressure from rising CAC are prioritizing retention where unit economics are strongest; the TAM implied here is $4.8B (2,000,000 businesses × $2,400), with a Market Score of 92/100 and Revenue Potential of 88/100. Those dynamics create a large, addressable opportunity for effective recovery tooling. To stand out you’ll need defensible data and models (shared learnings across merchants), seamless integrations that minimize engineering lift, and a rigorous measurement model that proves recovered revenue versus margin. Be honest about the challenges: competition is medium and includes payment processors and in-house teams, access to rich payment data requires merchant permissions and careful compliance, and pricing must demonstrate clear ROI to overcome switching costs.

Market Opportunity

Stop MRR leakage: detect failed payments and recover lost revenue targets a $4.8B = 2,000,000 subscription businesses x $2,400 average annual spend on recovery & retention tooling total addressable market with medium saturation and a year-over-year growth rate of 18% (subscription management and retention tooling growth driven by SaaS expansion and focus on LTV).

Key trends driving demand: Subscription economy expansion -- more companies run recurring billing, increasing absolute failed-payment events to monetize.; Payment API maturity -- Stripe/Braintree expose richer failure metadata that enables intelligent retry strategies.; Focus on unit economics -- rising CAC makes retention and recovery a cost-effective lever to boost growth.; Automated personalization -- ability to tailor messaging and retry timing increases recovery efficacy versus one-size-fits-all dunning..

Key competitors include Churn Buster, ProfitWell Retain (by ProfitWell), Chargebee, Stripe Billing / Smart Retries, Manual workflows (Mailchimp / HubSpot / internal scripts).

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Stop MRR leakage: detect failed payments and recover lost revenue

Executive Summary

Market Validation

Market Opportunity

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