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We deliver outstanding customer experiences through expert-led processes.
Losing subscribers is a significant challenge for DTC subscription brands. While the goal is to maintain a steady income from a loyal customer base, high churn rates can stifle growth and shrink revenue.
This blog, written by our Shopify Plus experts, outlines seven common causes of subscription churn and how to prevent them.
We also look at the benefits of Retain, a suite of products recently launched by our trusted partner, Recharge, and how it can help with your brand’s retention efforts.
In a time when the cost of living is high, consumers are looking for ways to cut costs. High prices or perceived poor value can lead to churn, even though subscriptions often offer better value than one-time purchases.
Solution: Clearly communicate the cost savings and added value of your subscription compared to individual purchases. If you sell a discretionary product, you’ll need to convince your customers that it’s worth sticking with your brand and product by ensuring they feel valued and rewarded. Loyalty programmes that offer tangible benefits (free gifts or exclusive early access) are a smart way to keep your customers from jumping to a cheaper competitor.
Recharge’s new product suite, Retain, offers a loyalty programme builder that incentivises customers to stick around with rewards such as credits, free gifts, and progressive discounts, all customisable to your business. The benefits can be integrated throughout the subscriber experience, for example, displaying rewards previews on PDPs to turn one-time purchasers into subscribers.
Rigid subscription models that don’t cater to customer preferences or lifestyle changes often drive cancellations. If a subscription becomes difficult to manage or is perceived as more trouble than it’s worth, customers will seek alternatives.
Solution: Provide flexible subscription plans that allow customers to easily modify their subscriptions by changing delivery frequency, pausing, or skipping shipments to suit their needs. The easier and clearer the process, the more likely customers will appreciate the service and stay. The best subscription models offer a range of quantities and delivery cadences, as well as features like partial shipments, a pause feature, or even the option to ‘gift a skipped shipment.’
Not heard of gifting a skipped shipment? Find out more about the Recharge feature here.
Even with the most comprehensive self-service subscription model, customers will always have issues they can’t resolve themselves. Unresponsive or unhelpful customer service will frustrate your subscribers, leading them to cancel.
Solution: Always have a responsive and empathetic support team available through multiple channels, such as phone, email, chat, and socials. Timely responses and efficient resolutions will ensure your customers stay locked in.
Customers may cancel subscriptions if the brand fails to meet their expectations due to poor quality products, an uncompelling customer experience, lack of consistency, or unmet delivery promises.
Solution: Seek customer feedback often and address concerns to continuously improve and align with customer expectations. Feedback surveys can help collect information at all touchpoints of the business, offering actionable insights to drive customer retention.
As a DTC brand, you have many opportunities to connect with your audience, building close relationships and fostering enduring loyalty. Failing to do this may result in a misunderstanding of your brand values, leading customers to take their money elsewhere.
Solution: Craft a compelling online presence that clearly showcases your brand values and story. Your website is your digital flagship store and an excellent opportunity to design an experience that resonates with your customers. Email marketing flows and campaigns also offer a chance to connect with your subscribers, reminding them of why they shopped with you in the first place.
Consumers can be hasty, especially when frustrated. Customers that submit a cancellation request are often open to keeping their subscriptions; they just have a problem to solve and little time to seek out the right solution.
Solution: Offer alternatives using data. Collect feedback from customers who cancel to understand their reasoning and build targeted alternatives for future circumstances.
Retain’s Cancellation Prevention feature is an active churn reduction tool that offers customers personalised alternatives to cancellation based on their reasoning. It collects critical data, providing intel on which aspects of the customer experience to focus on. Baked goods subscription service Wildgrain saved 22% of cancellations with this feature, find out more here.
Passive churn occurs when customers unintentionally cancel due to expired payment cards or declined transactions.
Solution: Implement automated tools for payment notifications and provide easy ways for your customers to update their information, ensuring continuous service without interruptions.
Recharge also offers a solution for this with Retain; a Failed Payment Recovery feature powered by machine learning that detects failed payments, diagnoses issues, and proactively contacts customers with resolutions to keep subscription orders incoming.
Preventing customer churn requires a proactive approach focused on enhancing customer satisfaction and loyalty. Addressing common churn causes and implementing effective strategies can help your brand retain customers and drive sustainable growth. Even small improvements can yield significant advantages, with a 5% boost in retention potentially increasing revenue by over 25%.
For personalised advice on improving your customer subscription experience, speak to our team today.
For an introduction to our partners at Recharge, you can get in touch. Please note that Retain is available as an add-on to Recharge Pro & Custom Plans.
Losing subscribers is a significant challenge for DTC subscription brands. While the goal is to maintain a steady income from a loyal customer base, high churn rates can stifle growth and shrink revenue.
This blog, written by our Shopify Plus experts, outlines seven common causes of subscription churn and how to prevent them.
We also look at the benefits of Retain, a suite of products recently launched by our trusted partner, Recharge, and how it can help with your brand’s retention efforts.
In a time when the cost of living is high, consumers are looking for ways to cut costs. High prices or perceived poor value can lead to churn, even though subscriptions often offer better value than one-time purchases.
Solution: Clearly communicate the cost savings and added value of your subscription compared to individual purchases. If you sell a discretionary product, you’ll need to convince your customers that it’s worth sticking with your brand and product by ensuring they feel valued and rewarded. Loyalty programmes that offer tangible benefits (free gifts or exclusive early access) are a smart way to keep your customers from jumping to a cheaper competitor.
Recharge’s new product suite, Retain, offers a loyalty programme builder that incentivises customers to stick around with rewards such as credits, free gifts, and progressive discounts, all customisable to your business. The benefits can be integrated throughout the subscriber experience, for example, displaying rewards previews on PDPs to turn one-time purchasers into subscribers.
Rigid subscription models that don’t cater to customer preferences or lifestyle changes often drive cancellations. If a subscription becomes difficult to manage or is perceived as more trouble than it’s worth, customers will seek alternatives.
Solution: Provide flexible subscription plans that allow customers to easily modify their subscriptions by changing delivery frequency, pausing, or skipping shipments to suit their needs. The easier and clearer the process, the more likely customers will appreciate the service and stay. The best subscription models offer a range of quantities and delivery cadences, as well as features like partial shipments, a pause feature, or even the option to ‘gift a skipped shipment.’
Not heard of gifting a skipped shipment? Find out more about the Recharge feature here.
Even with the most comprehensive self-service subscription model, customers will always have issues they can’t resolve themselves. Unresponsive or unhelpful customer service will frustrate your subscribers, leading them to cancel.
Solution: Always have a responsive and empathetic support team available through multiple channels, such as phone, email, chat, and socials. Timely responses and efficient resolutions will ensure your customers stay locked in.
Customers may cancel subscriptions if the brand fails to meet their expectations due to poor quality products, an uncompelling customer experience, lack of consistency, or unmet delivery promises.
Solution: Seek customer feedback often and address concerns to continuously improve and align with customer expectations. Feedback surveys can help collect information at all touchpoints of the business, offering actionable insights to drive customer retention.
As a DTC brand, you have many opportunities to connect with your audience, building close relationships and fostering enduring loyalty. Failing to do this may result in a misunderstanding of your brand values, leading customers to take their money elsewhere.
Solution: Craft a compelling online presence that clearly showcases your brand values and story. Your website is your digital flagship store and an excellent opportunity to design an experience that resonates with your customers. Email marketing flows and campaigns also offer a chance to connect with your subscribers, reminding them of why they shopped with you in the first place.
Consumers can be hasty, especially when frustrated. Customers that submit a cancellation request are often open to keeping their subscriptions; they just have a problem to solve and little time to seek out the right solution.
Solution: Offer alternatives using data. Collect feedback from customers who cancel to understand their reasoning and build targeted alternatives for future circumstances.
Retain’s Cancellation Prevention feature is an active churn reduction tool that offers customers personalised alternatives to cancellation based on their reasoning. It collects critical data, providing intel on which aspects of the customer experience to focus on. Baked goods subscription service Wildgrain saved 22% of cancellations with this feature, find out more here.
Passive churn occurs when customers unintentionally cancel due to expired payment cards or declined transactions.
Solution: Implement automated tools for payment notifications and provide easy ways for your customers to update their information, ensuring continuous service without interruptions.
Recharge also offers a solution for this with Retain; a Failed Payment Recovery feature powered by machine learning that detects failed payments, diagnoses issues, and proactively contacts customers with resolutions to keep subscription orders incoming.
Preventing customer churn requires a proactive approach focused on enhancing customer satisfaction and loyalty. Addressing common churn causes and implementing effective strategies can help your brand retain customers and drive sustainable growth. Even small improvements can yield significant advantages, with a 5% boost in retention potentially increasing revenue by over 25%.
For personalised advice on improving your customer subscription experience, speak to our team today.
For an introduction to our partners at Recharge, you can get in touch. Please note that Retain is available as an add-on to Recharge Pro & Custom Plans.
Losing subscribers is a significant challenge for DTC subscription brands. While the goal is to maintain a steady income from a loyal customer base, high churn rates can stifle growth and shrink revenue.
This blog, written by our Shopify Plus experts, outlines seven common causes of subscription churn and how to prevent them.
We also look at the benefits of Retain, a suite of products recently launched by our trusted partner, Recharge, and how it can help with your brand’s retention efforts.
In a time when the cost of living is high, consumers are looking for ways to cut costs. High prices or perceived poor value can lead to churn, even though subscriptions often offer better value than one-time purchases.
Solution: Clearly communicate the cost savings and added value of your subscription compared to individual purchases. If you sell a discretionary product, you’ll need to convince your customers that it’s worth sticking with your brand and product by ensuring they feel valued and rewarded. Loyalty programmes that offer tangible benefits (free gifts or exclusive early access) are a smart way to keep your customers from jumping to a cheaper competitor.
Recharge’s new product suite, Retain, offers a loyalty programme builder that incentivises customers to stick around with rewards such as credits, free gifts, and progressive discounts, all customisable to your business. The benefits can be integrated throughout the subscriber experience, for example, displaying rewards previews on PDPs to turn one-time purchasers into subscribers.
Rigid subscription models that don’t cater to customer preferences or lifestyle changes often drive cancellations. If a subscription becomes difficult to manage or is perceived as more trouble than it’s worth, customers will seek alternatives.
Solution: Provide flexible subscription plans that allow customers to easily modify their subscriptions by changing delivery frequency, pausing, or skipping shipments to suit their needs. The easier and clearer the process, the more likely customers will appreciate the service and stay. The best subscription models offer a range of quantities and delivery cadences, as well as features like partial shipments, a pause feature, or even the option to ‘gift a skipped shipment.’
Not heard of gifting a skipped shipment? Find out more about the Recharge feature here.
Even with the most comprehensive self-service subscription model, customers will always have issues they can’t resolve themselves. Unresponsive or unhelpful customer service will frustrate your subscribers, leading them to cancel.
Solution: Always have a responsive and empathetic support team available through multiple channels, such as phone, email, chat, and socials. Timely responses and efficient resolutions will ensure your customers stay locked in.
Customers may cancel subscriptions if the brand fails to meet their expectations due to poor quality products, an uncompelling customer experience, lack of consistency, or unmet delivery promises.
Solution: Seek customer feedback often and address concerns to continuously improve and align with customer expectations. Feedback surveys can help collect information at all touchpoints of the business, offering actionable insights to drive customer retention.
As a DTC brand, you have many opportunities to connect with your audience, building close relationships and fostering enduring loyalty. Failing to do this may result in a misunderstanding of your brand values, leading customers to take their money elsewhere.
Solution: Craft a compelling online presence that clearly showcases your brand values and story. Your website is your digital flagship store and an excellent opportunity to design an experience that resonates with your customers. Email marketing flows and campaigns also offer a chance to connect with your subscribers, reminding them of why they shopped with you in the first place.
Consumers can be hasty, especially when frustrated. Customers that submit a cancellation request are often open to keeping their subscriptions; they just have a problem to solve and little time to seek out the right solution.
Solution: Offer alternatives using data. Collect feedback from customers who cancel to understand their reasoning and build targeted alternatives for future circumstances.
Retain’s Cancellation Prevention feature is an active churn reduction tool that offers customers personalised alternatives to cancellation based on their reasoning. It collects critical data, providing intel on which aspects of the customer experience to focus on. Baked goods subscription service Wildgrain saved 22% of cancellations with this feature, find out more here.
Passive churn occurs when customers unintentionally cancel due to expired payment cards or declined transactions.
Solution: Implement automated tools for payment notifications and provide easy ways for your customers to update their information, ensuring continuous service without interruptions.
Recharge also offers a solution for this with Retain; a Failed Payment Recovery feature powered by machine learning that detects failed payments, diagnoses issues, and proactively contacts customers with resolutions to keep subscription orders incoming.
Preventing customer churn requires a proactive approach focused on enhancing customer satisfaction and loyalty. Addressing common churn causes and implementing effective strategies can help your brand retain customers and drive sustainable growth. Even small improvements can yield significant advantages, with a 5% boost in retention potentially increasing revenue by over 25%.
For personalised advice on improving your customer subscription experience, speak to our team today.
For an introduction to our partners at Recharge, you can get in touch. Please note that Retain is available as an add-on to Recharge Pro & Custom Plans.
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