Category Archives for "Churn"

The Profit Leak You Might Not Be Tracking – And How to Fix It

When you’re running a subscription business, churn is just part of the game. Granted, you want it to be as low as possible, and you probably work hard on reducing your churn month to month…but do you pay attention to your involuntary churn? While you’ll never be able to entirely eliminate churn — involuntary or not — you can decrease it as much as possible. In particular, involuntary churn, when a previously happy customer is lost due to circumstances like an expired credit card or declined transaction, is typically preventable. And not only is it preventable…it’s potentially costing you much more money than you’ve realized. On average, most debit and credit cards issued expire after three years, with some US […]

How to Use Account Updater to Increase Your Approval Rates

If you’ve come within ten feet of a subscription billing service, you’ve probably heard the term “involuntary churn.” But in case the term is unfamiliar to you, we’ll explain. Involuntary churn is when a previously happy, paying subscriber is lost due to circumstances like an expired credit card or a declined transaction. It’s “involuntary” because the subscriber didn’t choose to end their subscription, rather it ended due to inaction on the subscriber’s part. Involuntary churn is extremely common for subscription businesses. A subscriber signs up for an ongoing subscription with one payment method, likely a payment card. Over time, that payment card will expire or the subscriber’s payment card could be compromised. In this post, we’ll address a simple way to […]

Addressing a Subscription Retention Crisis Through Pricing

A churn rate that spikes during subscription renewal periods is often a sign that something has gone awry in the pricing scheme. In such a case, it’s a good idea to review pricing practices to make sure they incorporate these three principles: