A look into The State of Subscriptions: How to create conversion-optimized subscriber journeys
One of the most underrated but important aspects of the subscriber experience is the relationship you create with your subscribers. This year, an expertly-crafted subscriber experience maintains its position at the center of high customer satisfaction (which translates to high customer lifetime value), loyalty, and improved retention rates. If you’re not focusing on cultivating subscriber relationships in your recurring revenue business, you’re losing out on revenue.
Here is a sneak peek of our subscription predictions from our State of Subscriptions report.
The ultimate value of reduced churn is not only an increase in revenue but also the development of long-term subscriber relationships. As a result of changing consumer habits and the evolving landscape, subscription businesses have had to learn to adapt swiftly, shifting short-term, top-line growth to sustained, long-term relationships.Â
Moving forward, retaining existing subscribers remains paramount. Subscriptions remain consistent in consumers’ lives and even major economic changes only impact churn rates slightly–as long as subscription businesses can continue to deliver relevance and value at reasonable prices to price-conscious consumers. Businesses would be wise to pivot their focus to retention and lifetime revenue growth–learn what motivates subscribers to stay and what repels them.Â
While the subscriber experience is key to creating long-lasting relationships, brands need to ensure their involuntary churn tactics are activated and optimized. Losing subscribers to preventable churn is a huge loss to any organization. Our research found that about 50% of subscribers’ total customer lifetime happens after an involuntary churn recovery event–that’s a lot of revenue (and relationships) to squander. Make sure your subscription billing partner knows what they’re doing.
Curious to learn more? Download our full State of Subscriptions report now.