“Churn doesn’t happen for one overall reason,” Campbell notes. “Rather, it’s death by 1,000 paper cuts.”
To stem the bleeding, subscription brands can experiment with tweaking their delivery terms. “With term optimization, you recognize that someone on a monthly belgium mobile database subscription has more opportunity to cancel than someone with a quarterly subscription,” says Campbell. After all, a monthly member has 12 chances to cancel in a year compared to the four chances a quarterly member will have.
Customers on quarterly subscription plans tend to have an explosively higher LTV than customers on monthly plans, sometimes reaching 250% higher, Campbell says.
When brands allow fewer chances to cancel, churn is lowered, so term optimization could be one option for brands seeking to play around with delivery cycles and determine which selection reaps the most benefits.
He also considers add-ons at checkout an under-utilized feature to combat churn. “There are things brands can do during the cancellation flow to help keep members sticking around, and that includes offering an add-on product or service that would go well with their purchase,” Campbell says.
Complementing add-ons, bundling a different product or service from a partner business can also appeal to subscribers. Imagine a skincare subscription brand partnering with a jewellery brand to allow subscribers to add a necklace to their make-up purchase, perhaps even tailored by color and design.
The more forward-thinking and creative a subscription brand can be at checkout, the better chance they’ll have in reducing their churn, Campbell says.