When customers aren’t given incentives to stay engaged, their active subscription can soon become a canceled subscription. To understand ways your company can improve its services or offerings, you might ask recently canceled customers to fill out a quick survey. It also gives you a chance to offer a special deal to get them reengaged. Your “churn rate,” or the rate at which you lose subscribers, can often be improved simply by alleviating common customer concerns. To help your churn calculation return positive results, try offering deals to help retain subscribers. If one of these deals helps address their primary concern, they can be more likely to stick around.
A Discounted Subscription Price for the Next Three Months
The most straightforward problem can also be the easiest to solve. If your customer’s biggest issue is the price, a short-term discounted price is a great way to keep them on board. The duration of this price all depends on your product and its original price. Three months is a reasonable amount of time for the customer to reevaluate how to fit the subscription into their budget. This deal is an excellent way of letting you acknowledge customer concerns without lowering your price point for too long.
A Free Trial of a Higher Subscription Level
A subscription is all about value. Customers want to know they are getting what they pay for. When the cost of the subscription outweighs the benefits, your churn rate formula will likely begin to show an increasing number of canceled subscriptions. If your business offers different subscription tiers, offering the customer a free trial of a higher subscription level might change their perception of value. If they are allowed to use extra amenities in the gym or receive the deluxe skincare mystery box, they might see a better return on their investment. The higher tier could be just what they need to make the value outweigh the cost.
A Free Gift Subscription Trial for Friends and Family
This deal is an excellent option for subscriptions that are community-driven by nature. If a customer hasn’t used their account recently, they might change their mind if their friends and family join the community. For example, someone might cancel their gym membership because they can’t find enough motivation to make use of it. If the gym offered a free month pass to that member’s friends and family, it might give them enough incentive to stay. This deal also has an extra benefit of additional members joining after their free trial.
A Pause Function
Sometimes, people just need a short break. They don’t want to cancel their subscription entirely, but without another option, their subscription can come to an end. With the right subscription management platform, you can introduce a pause function and offer it as an option instead of cancellation. Their profile and all their account details will stay ready to go when they are prepared to resume their subscription. This can make it easier and more enticing for customers to come back and continue their subscription.
About Recurly
Recurly is ready to help you take your subscription-based business to the next level. From box of the month clubs to pet food subscriptions, businesses in every industry are implementing recurring billing strategies. Recurly has been a leader in the subscription industry for over a decade, helping to manage over 40 million subscriptions. Their billing platform can help your business thrive with a range of smart tools to help implement solutions, scale globally, and increase your customer’s lifetime value. Your subscription-based business might face challenges, but Recurly can help you overcome them. From iterating new pricing models to solving problems based on the results of your churn rate formula, Recurly strives to offer continued support throughout your subscription journey. Make Recurly your top choice for helping your company find success in the modern business landscape.
Improve your subscriber retention numbers with help from Recurly at https://recurly.com/
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