Rapidly Growing SaaS Company Conquers Bottomless Pit of Help Tickets
Paddle, the sixth fastest growing tech company in the UK, is a one-stop shop subscription and commerce platform for SaaS companies. More than 600 software businesses in 150 countries use Paddle’s checkout and licensing solution to scale internationally without managing sales tax and compliance internally.
Growing revenue by 3,858% in four years might sound like a dream come true for any SaaS startup. And while rapid growth catapulted Paddle, the workload for the buyer support team multiplied exponentially. Paddle offers support not only to its hundreds of SaaS customers, but also those who buy the SaaS products. From the moment the buyer places an order up until they begin using the software, Paddle is responsible for answering all help tickets—from refund requests and subscription cancellations to missing license keys and activation codes.
As Paddle’s customer base spread to several hundred SaaS companies around the world, the floodgates opened to help tickets from millions of buyers. Six full-time employees weren’t able to respond to queries promptly. Eventually, response times grew longer and buyers grew more impatient. At times, support agents couldn’t respond to a query for a week.
“We were losing control of the queue, and we realized we were giving a very poor experience to those customers,” Paddle Success Operations Manager Gary McGrath says. “If you’re a customer who wants a refund and no one’s talking to you, obviously, you’re going to expect the worst.”
Dreaded Chargebacks on the Rise
Delayed response times created a domino effect with potentially crippling consequences for Paddle. The company essentially acts as a reseller for SaaS businesses, processing financial transactions on behalf of its customers. Buyers would often send queries about unrecognized credit card charges. The longer they waited for a response, the more convinced they became that the charge was fraudulent. At that point, the buyer would request a refund from their credit card company, triggering a chargeback.
Chargebacks pose a serious risk to Paddle, whose business model relies heavily on partnerships with payment gateways like Paypal and Stripe. If the chargeback rate exceeds 0.25%, those payment gateways could end their partnership with Paddle and ultimately halt operations.
Strained Relationship with SaaS Customers
Paddle’s SaaS customers began to complain that the increase in chargebacks was skewing their sales and revenue data. It became more difficult to measure marketing campaign results, conduct financial forecasting and assess other business intelligence. As slow response times and chargebacks began to strain Paddle’s relationships with their SaaS customers, the gravity of the situation became glaringly obvious. Company leaders knew they had to resolve these problems right away.
A Scalable Solution Aligned with Company Values
The Outsourcing Partner that Puts People First
Paddle executives explored various solutions before deciding to outsource. Expanding the in-house buyer support team would’ve been extremely expensive for the startup—not only to fund payroll but also rent a bigger office space in London. And because Paddle values self-improvement and work-life balance, night shifts seemed to conflict with their principles.
Executives had briefly considered hiring remote contractors abroad, but extensive security requirements on financial transactions made that option unviable.
So Paddle decided to outsource with a particular vision in mind. They wanted an extension of their team or as McGrath describes it, “a business partner that wasn’t in our office.” Company leaders were adamant about partnering with a company that shared similar values and treated its workers well.
Upon discovering Enshored, McGrath was impressed by Enshored’s culture of empowering their workers. Like Paddle, Enshored valued its employees and proved it in corporate policies. The outsourcing provider offered benefits like health insurance, holiday pay and professional development. Although Enshored’s pricing turned out to be slightly higher than the competing outsourcing providers, Paddle ultimately chose Enshored because they shared similar values.
"“Basically, people are important at Enshored. That’s what came across. And to us, that was really, really important,” McGrath says. Demands on the buyer support team would continue to intensify, and Paddle managers wanted to make sure their extended team were well taken care of."
Paddle Success Operations Manager
Rock-Solid, Reliable Customer Support Team
Seven months into partnering with Enshored, Paddle’s buyer support function is stronger than it has ever been. The team has grown from eight to 18, and the buyer support team now operates 16 hours a day—a big step up from the eight-hour coverage before the partnership.
Customer Satisfaction Scores Consistently Hit 90% and Above
After every support interaction, Paddle automatically prompts customers to rate their experience. Since Enshored has taken over buyer support, Paddle has earned customer satisfaction scores of 90% or higher, week after week. Oftentimes, happy customers go beyond the scorecard, describing a stand-out experience in detail or simply expressing gratitude.
“The fact that customers actually take the time to write positive feedback is phenomenal,” McGrath says. “We never used to get that kind of feedback . . . ever.”
Confident Sales Team Equipped with Powerful USP
In the past, Paddle’s salespeople would sometimes shy away from promoting buyer support to prospects or new SaaS customers. Now sales team members are confident about promoting that added benefit because they know the Enshored team will deliver on their promise. Buyer support has become a strong unique selling proposition for Paddle.
Rapid Response Times: 12 hours or Less
Paddle’s new standard for answering customer queries is within 12 hours. Before partnering with Enshored, about 40% of responses met that target. These days, the Enshored team has consistently met the 12-hour mark close to 100% of the time. Speedy turnaround times have also contributed to lower chargeback rates.
Restructured Employees Excelling in New Positions
Layoffs were never an option for Paddle. Once the company decided to shut down the in-house buyer support team, McGrath assigned those employees other positions. He was careful to avoid redundant responsibilities and made sure each employee was genuinely interested in their new role. So far, McGrath says every one of those team members are succeeding, including one that earned a top performer award in sales support soon after getting reassigned.
Scaling the Extended Team Beyond Buyer Support
Paddle maintains a close relationship with Enshored, communicating every day with their extended team. Because Enshored has proven its professionalism, quality service and attention to detail and accuracy, Paddle continues to scale its extended team beyond buyer support into more specialized areas. The company’s risk analysis team has recently taken on two analysts from Enshored, and Paddle executives are exploring other possibilities to extend the team.