“Cancel Subscription”. It’s the dreaded phrase all digital subscription services want to avoid.
Customers are the bread and butter of subscription services and as such retaining them has become
integral to the long term strategy (and in most cases survival) of an organisation. With a subscription
based business model, their lifetime value is what is truly at stake when they first join your platform.
It’s what makes your marketing efforts worthwhile. However, even though businesses realize that a
customers’ lifetime value is precious, they do very little to ascertain and pre-empt the reasons they
In fact, many digital subscription services focus solely on acquiring customers as opposed to creating
customer loyalty and market competitiveness. Though it can 5 times cheaper to retain a customer
than it is to acquire one and much easier to incrementally increase revenues from existing customers.
While momentum is growing around subscription services, very few actively pursue the reasons
behind what’s really eating at their profits each month. It is not the lack of interest or insufficient
marketing. It’s the slow and steady bleed of customers that either fail to re-subscribe or cancel their
subscription completely. These customers are more valuable to a business than many
entrepreneurs care to admit; and are substantially more valuable than new customers as they reveal
the cracks within a business model that may be overlooked.
When a customer leaves, they leave behind a trail of bread crumbs. Although this customer is gone,
they may not be not lost forever. If you want to have a fighting chance at getting them to return and getting
your existing customers to stay, you need to invest in customer churn analysis software, which
should ultimately be the cornerstone of your customer retention strategy.
The customer churn analysis software that we have developed here at Churnly does exactly that. It
learns and analyses why your customers leave, then using artificial intelligence predicts which customers are most at risk. Working as a preventative measure to ensure you can prioritise and focus on those customers with the highest Life Time Value and improve their experience.
The bottom line is that without customer churn analysis software, businesses are likely to continue
fighting a losing battle.
What your company cannot afford to overlook is the fact that once a customer has unsubscribed
they are still in the market for your product or service, meaning they’re highly likely to choose a
competitor. In this case, its revenue that otherwise would have remained in your business, had you focused more on
understanding why your customers leave you.