One of the most valuable (and lowest effort) ways for subscription merchants to improve retention and increase their overall customer LTV is to address passive churn.
Passive churn is a silent killer. It’s difficult to see, often misunderstood, and too often neglected. However, the fact remains that many merchants are losing money involuntarily due to failed credit card payments. On average, 10% of renewal payments fail, which can account for up to 50% of overall churn. With Churn Buster’s tried-and-true approach to dunning, industry leaders are able to recover over 90% of these subscribers.
Plugging in to an advanced dunning process is hands down the easiest, most impactful way to improve retention today. However, failed payment churn does not exist in a bubble. The difference between merchants recovering 90% of payment failures vs. those recovering 20% (using the exact same dunning process) lies squarely in the active churn column.
There is a direct correlation between active and passive churn rates. A customer’s france phone number list desire to cancel is tightly linked to their desire to provide an updated credit card after a renewal payment fails. Active and passive churn rise and fall together.
It’s why it’s important to look holistically at the many factors that impact your subscribers’ desires to stick around.
One of the most impactful ways to both reduce active churn, and gain insights that help address churn reasons much earlier in a customer’s lifecycle, is with a custom cancel flow.
Over 30% of subscribers can be saved after they hit the cancel button.
Allowing subscribers to reschedule an order rather than cancel, or dynamically serving offers to specific customer profiles are just a few of the ways merchants can use cancel flows to make “saves” they otherwise would have lost.
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