State of Subscriptions: The churn chapter

Unique insights. Industry trends. Churn benchmarks.

10 min. read

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What’s inside this churn trends chapter?

  • Unique churn benchmark data from leading brands like Twitch, TIME, Sprout Social, FabFitFun, Paramount+, and Sling

  • Market, business-type, and industry-level breakdowns of churn patterns and how they’ve evolved over the years, including insights into involuntary and voluntary churn, at-risk subscribers, and recovered invoices

  • A thorough analysis of how these business churn numbers impact the trajectory of the subscription industry and how to respond strategically

  • The most prominent churn trends of the year, along with the overall impact of Recurly on our customers’ churn rates specifically

In 2022, the average overall churn rate is 6.9%. How does your business compare?

Churn rates change all the time for numerous reasons. Whether they’re causes beyond your control like credit card declines that contribute to involuntary churn or preventable practices like lacking a thoughtful, omnichannel subscriber journey, churn is at the epicenter of all businesses–especially recurring revenue businesses. Nowadays, the only way to stay competitive in this ever-changing subscription market is to understand your customers’ churn behavior and how it compares to those in your industry. 

And if you don’t have this information, your business is falling behind. You need our data-driven churn trends report now.

Recurly is on track to save 23.9M invoices in 2022. That’s a lot of otherwise lost revenue.

Powerful brands take churn benchmark data, consumer trends, and these items’ impact on the subscription industry to create a comprehensive churn mitigation plan. Pulling insights from over 2,200 leading subscription brands and over 50 million active subscribers, Recurly has compiled the latest, year-to-date churn data into this report. In addition to recent churn trends and benchmark insights from 2022, you’ll also learn:

  • How these changes are impacting your business and the subscription industry as a whole, plus how to be proactive with your efforts moving forward

  • What’s influencing changes in purchase decisions, from inflationary pressures to consumer preferences, and how you can mitigate the impact

  • The tools and resources you need in a subscription management and recurring billing solution to ensure a strong grasp on churn no matter what

Everything you want to know about the latest status of churn for recurring revenue businesses is just one download away. Download our State of Subscriptions: The churn chapter now to keep a good thing growing. 

Want a sneak peek of this churn chapter? Take a look.

At-risk subscribers saved

Recurly monitors churn from many perspectives–especially before it happens. We track merchants who don’t have recovery techniques in place and determine the percentage of their involuntary churn that could have been prevented from both the proactive and reactive recovery features the Recurly platform provides. We term those “at-risk subscribers,” or those who have been saved by avoiding involuntary churn. 

Overall, subscribers who were saved after a recovery event–recovered as a result of failed payments–stayed active for an average of 320 following the event. In B2B environments, this number changed to 428 days, while B2C companies experienced an additional length of 308 days. The subscription industry with the longest extension is Software with 386 days, and the industry with the shortest extension is Healthcare with 253 days. Moreover, approximately 49.6% of subscribers’ total customer lifetime happened after a recovery event. This confirms that recovery events are instrumental to the long-term success of a subscriber’s journey.