New Subscriber Churn Benchmarks and Why Managing Churn Is Critical

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Recurly Research Churn benchmarks

In the last few weeks, the headlines around subscription commerce have centered on two main players: Moviepass and The New York Times.

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Pause Subscriptions to Minimize Voluntary Churn and Maximize Revenue

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Best Practices Churn subscriber retention

Subscription businesses work hard to provide their subscribers with value. Despite their best efforts, subscribers do cancel, sometimes due to things that are out of the business’ control. For example, perhaps the business is an OTT provider that streams certain sports. Since most sports are seasonal, during the off-season, the subscriber may not use the service and may opt to cancel. Or time and money constraints, or work or travel obligations prevent subscribers from using and enjoying their subscriptions.

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Minimize Churn, Maximize Revenue: a New E-Book From Recurly

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ebook Churn subscriber retention

Churn is a key metric in subscription commerce, tracked closely by the most specialized Box of the Month businesses to multi-million-dollar enterprise SaaS companies. This is because even slight differences in churn rates can have a significant impact on revenue growth.

Understanding how to minimize churn and increase subscriber retention is a key focus for successful subscription commerce companies. It’s a significant area of focus for Recurly, too, as we are continually working to develop new technology to reduce churn. We also want to make sure we are sharing our expertise, and our newest e-book discusses key considerations in managing churn and retaining subscribers.

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How Effective is Your Dunning Strategy? Recurly Analytics Has the Answer.

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Churn Best Practices dunning

As we have discussed in the first and second blog in this series, dunning is a key process for maximizing revenue, and Recurly offers flexible tools to help you develop and manage your dunning strategy. In particular, Recurly users can set:

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Dunning Best Practices & How Recurly’s Dunning is Different

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Churn dunning Best Practices

In today’s blog, we’re continuing our discussion about dunning. As a reminder, dunning is the process of communicating with customers (usually by email) to try to collect payments due. In effect, discussions about dunning are really discussions about these customer communications.

In our last blog, we described how the dunning process works at each step and the decisions the merchant can make which can optimize the process and improve results. We also outlined how Recurly’s dunning process is more effective.

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How a Flexible Dunning Schedule Improves Transaction Success Rates

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Churn dunning

Subscriber churn is a key concern for subscription businesses. When subscribers leave, the business loses both current and future recurring revenue. Of course, some churn is “involuntary”—occurring as a result of a failed payment rather than a subscriber cancelling deliberately.

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What Is Involuntary Churn & What You Can Do About It

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Churn Best Practices decline management

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.

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Winter is Coming to Westeros and HBO Is Ready to Capitalize

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OTT Churn

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. 

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Comparative Churn Data to Gauge the Health of Your Business

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.

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Using Recurly Data to Fight Churn

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?
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