27 Jul 6 Ways to Avoid Churn for Your Subscription-Based Business
Building a successful subscription-based business requires keeping customers excited and engaged in what your company has to offer. There are many reasons why a user may unsubscribe. When this occurs, it is measured by “churn rate,” which is the calculation of lost subscribers over a specific time period. Some motivations for unsubscribing are unavoidable, while others can be managed with a few strategies.
Here are 6 ways to avoid churn in your subscription-based business.
1. Understand and Analyze the Customer Journey
Identify why your customers are unsubscribing and where in the customer journey they are most likely to opt out. This will help you understand the problems and roadblocks they may be facing. By monitoring usage trends, you can determine when the highest rate of churn occurs and begin to combat the problems at these points of the journey.
2. Incentivize your Customers with Loyalty Programs and Upgrades
When you offer loyalty programs, customers will be intrigued to continue subscribing. Discounted long-term contracts, referral bonuses, and reward programs are a few examples of ways to do this. This can be especially helpful to introduce at the point of the customer journey that sees the most churn. Reward them for their loyalty, and you will likely see an increase in customer retention.
3. Know What Your Competitors are Doing
How are your competitors adapting to the needs and demands of customers? If a customer sees someone else can offer them more than what you are offering, that can incentivize them to unsubscribe. The needs and demands of your subscribers are ever-changing; don’t let your competitors get ahead by adapting to the needs of your consumers before you do.
4. Provide Quality Customer Support and Act on Customer Feedback
When your customers feel heard, they will be loyal to your company and will be less likely to unsubscribe. Providing access to feedback surveys, committing to quality customer support options and utilizing market research will show subscribers you are committed to improving and are listening to their concerns. This will help customers feel valued and influential.
5. Deliver Value and Educate Customers on Your Business
Do your subscribers really know all the benefits of your business? When you continue to highlight and promote these benefits through marketing materials like e-newsletters and direct mail, your customers will see why they should continue to subscribe. If customers can see the increasing value of being engaged in what you have to offer, they will be more likely to continue to do so.
6. Offer Easy Online Payments with an Integrated Payments Partner
To avoid churn, you’ll want to make the payments process as streamlined as possible. Working with an integrated payments partner offers an easy and secure way for your customers to pay online without leaving your software interface. Learn more from our article on the Top 3 Ways Payment Integration Adds Value for Software Customers.
Avoiding subscription churn comes down to using the ideas above to provide an amazing customer experience. Delivering one that allows you to retain current customers and extend your brand to new ones.
Call BASYS Processing today at (800) 386-0711 to discuss an integrated payments solution for your subscription-based business.
Don’t have a subscription-based business but looking to start one? Read our article the 4 Business Benefits of Subscription Payments.