Reducing churn is the most cost-effective way to drive long-term growth for a subscription business.
Churn is a leak in the customer acquisition funnel, continually working against a merchant's sales and marketing efforts. Combine that with the fact that 95% of unhappy customers cancel without ever complaining, *it becomes even more* critical to have automated tools in place to address and prevent churn.
We’ve created a way to help you save a subscriber and understand why they may have churned with the new ReCharge Retention Strategies.
How it works
It’s as simple as flipping a switch.
On the ReCharge Settings page, choose between Basic and Retention Strategy cancellation options.
Add your first retention strategy.
Start by creating a reason for cancellation and a related incentive. You can offer a discount to persuade customers not to cancel -- or the option to skip the next delivery or delay it by a specific amount of days.
Build out a full list of cancellation reasons.
Once you've created a few reasons and related offers, you can view and edit them as needed.
What the customer sees.
Customers are presented with a customized list of cancellation reasons.
Download cancellation reports.
Evaluate all your cancellation data by downloading a report within ReCharge for inactive customers, which will include cancelled subscribers and their reasons for cancellation.
Retention Strategies in action
Planner Perfect sells beautifully hand-crafted planners, journals, and notebooks. If a customer requests a cancellation, one of the retention strategy responses they’ll see is “I already have more than I need” -- to which Party Planner will respond with an option to skip or pause the next order.
Treat & Repeat delivers single-ingredient, freshly-made dog treats to customers’ doorsteps every month. Customers who wish to stop their subscription are presented with a list of retention strategy responses, including “I want a different product” -- to which Treat & Repeat will respond with an option to swap their subscription product.
Farmers First Coffee Co. is a farmer-focused coffee merchant that provides a 50% bonus directly to the people creating the coffee, an amount 4 times higher than "fair trade.". Customers who wish to stop their subscription are presented with a list of retention strategy responses, including “This is too expensive” -- to which Farmers First will respond with a discount offer.