Retaining customers is unique to subscription stores. While driving traffic to a store and converting visitors into buyers is common for all online businesses, retention is an additional aspect that subscription stores must focus on to fully realize their potential. Customers churn for various reasons, and it is the seller's responsibility to try to prevent it. One effective tactic is to simply ask subscribers why they are pausing or canceling their subscriptions and then offer solutions to keep them subscribed.
When a subscriber decides to cancel, sellers can direct them to do so online while capturing their reason for cancellation. Recharge provides custom workflow designs to tailor this retention experience. For instance, if a buyer states that they have too much product, the flow can direct them to simply skip the next shipment rather than cancel the whole subscription. If they find the product too expensive, they can be presented with a discount offer for their next shipment. The possibilities are numerous and limited only by the seller's imagination.
One popular supplements store offers the following options to customers looking to cancel:
1. I already have too much of the product.
2. I’m taking a break.
3. It doesn’t work for me.
4. It is too expensive.
5. I’m going on a vaccation.
6. Other – describe.
Each selection can be met with a counteroffer or suggestion from the store:
1. Rather than cancel, you can just skip the next shipment.
2. Can you tell us why? (This allows them to explain.)
3. Have you tried increasing the dosage?
4. We can offer you a discount for the next six months.
5. We can send product to your vacation address.
6. Please tell us why, and we’ll see if we can make you a special offer.
Another strategy to combat churn is to offer frequent rewards to repeat customers. For example, redeemable reward points can be given for each repeat order, which can then be used as discounts on future purchases. The theory is that nobody wants to lose what they already have; therefore, it is an effective way to encourage customers to stay subscribed a bit longer.
Winback strategies come into play after a customer has already canceled. If a store has information about why the cancellation occurred, they can address those concerns in follow-up emails. When customer concerns are effectively addressed, winback rates can be very high—reportedly up to 35% in some cases. For instance, a store might notify customers that prices have been reduced or that new products have been introduced (such as new coffee flavors).
Additionally, there is passive churn, which occurs when a customer’s payment method is no longer valid, and they did not provide a new one. This can happen without the customer’s awareness, so it is crucial that every failed charge attempt is followed by an email notification to them.
In summary, a subscription represents a relationship that begins the moment someone signs up. Like any long-lasting relationship, it needs to be nurtured through loyalty rewards, occasional gifts, and a general display of care for the customer. Many subscription stores offer live customer service — one of my clients refers to it as “Customer happiness service.” When challenges arise in the merchant – customer relationship, it is essential to take steps to get relationship back on track, using churn prevention tools and win-back strategies.
