One of the main challenges subscription businesses face is churn, which lowers the number of subscribers and monthly recurring revenue. The two types of churn are voluntary and involuntary, and because each is driven by entirely different things, as a subscription business, you need to take different steps to mitigate each type of churn.Continue Reading
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The battle for Westeros is about to heat up when the newest episode of HBO’s massively popular series, “Game of Thrones” airs on July 16th. Winter is indeed coming. At the same time, the battle to rule the Over the Top (OTT) airwaves is also heating up. The main players (Netflix, HBO, Amazon Prime, and Hulu) are all seeking to create the next must-see series and gain huge numbers of new paying subscribers.Continue Reading
Because it can so negatively impact monthly recurring revenue, customer churn is something that subscription businesses take very seriously. Churn is an important concern as it takes away from the hard-fought efforts to acquire and retain customers. Because of this impact on revenue and subscriber numbers, a subscription business’ monthly churn rate is an indicator of the health of the business, and it should be monitored closely.Continue Reading
In our previous post in this series, we talked about the difference between cancellation and churn. The post outlined the different actions you can take when a customer cancels to try to prevent them from churning and how Recurly helps to identify these customers.
Because we know you can’t prevent all churn, we want to talk about ways to analyze your subscriber churn rate to surface insights that you can then act upon. In particular:
- Where does your churn rate stand in comparison to your competitors and/or to the market as a whole?
- What are some of the meaningful data points related to churn that provide actionable intelligence?
Do you know what your subscriber churn rate is? How about the median churn rate for your industry? Do you know the difference between churn and cancellation? And perhaps most importantly, do you know what you can do to try to prevent a customer who has cancelled from churning?Continue Reading
“If you wish to converse with me, define your terms.” ~ Voltaire
Next week, we’ll be launching the first of several blog posts about data—specifically about how our customers can use their data in Recurly to improve and optimize their business. Our first post focuses on churn, which is always a key topic of interest for subscription-based businesses. But before we dive into the blog series, we thought it might be a good idea to quickly review the meaning of some different terms related to churn.Continue Reading
Here’s a really useful blog post from our friends at Price Intelligently, titled “How to Turn a SaaS Company Around in 90 Days.” While it’s written with a SaaS audience in mind, the concepts are solidly applicable to nearly any subscription business.Continue Reading
Subscription-based businesses strive to do many things: delight their customers, further their mission, grow and expand. Subscription businesses work hard for their revenue, much of which is paid via credit cards, which present a risk—the risk of failed transactions which are the enemy of growth due to the churn they cause.Continue Reading
Many merchants are concerned about their transaction decline rates and want to ensure that the rates are within what is normal for their industry or segment. Their concerns can be amplified by seeing large blocks of declined transactions, multiple attempts to collect on a single invoice, and numerous customer updates to billing information. It's important to note that with subscription billing, declines are normal. For most customers, a decline rate of 5-14% of monthly transactions for business-to-business (B2B) and 6-18% for business-to-consumer (B2C) is about right—but that number will vary greatly depending on the composition of a user base.Continue Reading
“Card declined”—two words that subscription businesses hate to hear. Credit card declines result in the loss of revenue and increased churn, impacting your bottom line. Some number of declines are unavoidable, and as discussed in a recent blog post, some payment events—such as the widespread issuing of new EMV cards in the United States this year—can also result in increases in both failed payments and card-not-present fraud.Continue Reading