How to minimize churn rate & maximize subscription business revenue

Cut involuntary churn rate to 1%. Boost subscription revenue 11% MoM.

10 min. read

Download your guide

What’s inside this how-to guide?

  • Key drivers to reduce your churn rate–voluntary and involuntary–and increase your subscription business revenue

  • How subscribers’ perceived value is affecting your margins and how to respond strategically

  • Why recurring transactions fail and how to prevent them from happening again

  • Churn benchmarks broken down by industry, B2C versus B2B, and more

  • The importance of an expert partner to deploy dynamic retries and effective dunning strategies

  • How to conduct a cohort analysis to analyze churn behavior with subscriber data and insights

13% of recurring transactions are declined each month, on average. How much revenue are you losing because of this? 

“Revenue-eaters,” otherwise known as card declines, chargebacks, and gateway failovers, are stealing your customers and your subscription business revenue time and time again. Any business, and especially businesses in the subscription space, can agree that billing issues leading to payment failures is one of the most frustrating operational components. In fact, 72% of all renewal credit card declines are due to generic declines, insufficient funds, and temporary holds–a simple, automated renewal turned sour because of inadequate billing features. However, without the ability to recover and prevent regularly declined transactions, the stability of recurring revenue drifts further and further from reality.

But this doesn’t have to be your reality. We can end these problems right here, right now.

Featuring Recurly insights from more than a decade of experience across all industries and more than 2,000 brands, you can guarantee that these easily preventable issues never see the light of day with this expertly-crafted guide that teaches you how to cut your involuntary churn rate to 1% and recover that otherwise lost revenue to scale faster. You’ll also learn how to:

  • Dive deeper into “the subscriber mindset” to understand what influences subscribers’ perceived value of your product or service–and what happens when cost exceeds said value

  • Proactively and automatically recover as much of your recurring revenue as possible

  • Create a consistent month-over-month revenue lift thanks to data-driven subscriber insights that strategically inform your growth plan

After implementing Recurly, Output saw an astounding 45% decrease in card declines.

Brian Zarlenga — General Manager


Hit your retention and revenue goals. The right subscription billing solution will minimize these involuntary churn offenses and ensure they never happen again. Recurly has had over a decade of experience leading more than 2,000 recurring revenue businesses such as TIME, Paramount+, and FabFitFun to subscription success. On average, Recurly has helped subscription businesses recover over 70% of failed transactions and reduce involuntary churn rates to as low as 1%. In understanding the intense impact of churn on a subscription business, we’ve compiled our key learnings into one comprehensive guide that shares proven, resource-saving strategies to decrease your churn rate and maximize revenue so your subscription business can grow faster, smarter, and stronger.

Start shrinking your churn rate and maximizing revenue with our expert how-to guide. Get it by filling out the form above.

Intrigued? Get a sneak peek of our guide on how to minimize churn rate and maximize subscription business revenue below.

Why recurring transactions fail

For one-time ecommerce purchases, payments are straightforward: Payment information is captured and authorized, with a high likelihood of transaction success. If there is a problem with the transaction, an error message provides information to the buyer who can then remedy the situation accordingly.

But subscription models are more complex. The payment information that is captured during the initial sign-up transaction is held over the life of the subscription and used automatically during every billing period. This means that each new billing event, or renewal, presents a chance for the payment to be declined.

There are more than 2,000 reasons for payment failures, and these reasons vary based on whether a credit or debit card is used. In general, payment information, especially credit cards, can become outdated over time. The more time that elapses since the initial transaction, the greater the likelihood that the payment for the recurring charge or renewal will return an error.

And, of course, banks may decline transactions for other reasons even if the information is not out of date.

According to industry sources, an average of 13% of recurring transactions are declined each month. Repairing these transaction failures is critical to reducing involuntary churn.

Ready to take churn matters into your own hands? Fill out the short form above and start maximizing subscription business revenue today.