Usually subscription churn is when customers actively choose to stop subscribing to your product. However, this is only part of the churn, what is usually called the voluntary churn. But what do you know about your involuntary churn? Studies show that it can make up about 20-40% of the total churn, according to PriceIntelligently.
Involuntary churn occurs due to system errors, incorrect customer flows, poor data quality, outdated customer payment information or that the payment provider denies the transaction.
Here's a simple three step process to understand at start mitigating your involuntary churn:
All subscription businesses are unique, and it is important to understand your own numbers, and find your own solutions. Solutions might include: Notifying customers that they must update credit cards, change limits towards the payment provider or to update product codes / renewal chains in your subscription management platform.
Learn more about churn prediction here.
Do you need help analysing your churn and finding solutions? Get in touch for a discussion.