Pause Subscriptions to Minimize Voluntary Churn and Maximize Revenue
In either fixed or indefinite pause scenarios, you have the option to resume subscriptions manually before the end of the pause term, at the subscriber’s request.
When subscribers request to pause their subscription, the subscription remains active until they reach the end of their current billing period, at which point the subscription will move into a paused state. Since most subscriptions are paid in advance, this allows the subscriber to use the service that they’ve already paid for. And your accounting or finance department doesn’t have to worry about prorating refunds, issuing credits for unused periods of time, or other billing complexities that result from mid-cycle changes.
Why pausing is preferable
From the point of view of your business, retaining current subscribers is far less expensive than gaining new ones, or in this case winning back those who have cancelled. But if a subscriber’s only option is to cancel their subscription, your business must expend marketing and other resources to win them back. And once they do, you have to recreate their account and payment method, which takes up operational resources.
For the subscriber, they lose out on all their activity and billing history. They also lose things like their assiduously curated queue of things to watch on their subscription OTT service, or the account preferences they had painstakingly set up, perhaps for their curated box of the month.
Rather than spending money on the hopes that a churned customer will return, offer your subscribers the option to pause their subscription instead.
Optimize for your business
Some more things to consider as you implement this option:
Will you limit how long and how often subscribers are able to pause their subscription?
Will you set a minimum amount of time that the subscription must be paused before the subscriber can return?
Will you charge a reactivation or other fee to resume the subscription?
These decisions will differ depending on a business’ subscriber base and the particulars of its operations.
Provide value, reduce churn
Recurly understands the challenges subscription businesses face in reducing voluntary churn. By allowing subscribers to pause their subscription when needed, they are less likely to cancel. You get to continue your relationship with the subscriber, and subscribers appreciate your efforts to accommodate their needs and provide enduring value.