As subscription brands look for best practices to grow their member base and strengthen relationships with their customers, they should consider fighting churn as a key component of their strategy that will help them meet their revenue goals.
Subscription businesses rely on their long-term engagement with members to provide predictable growth and deep insights into customer behavior to personalize the experience. Churn can painfully undermine that approach—the cost of replacing lost subscribers not only makes it difficult to meet growth objectives but also quickly drains cash reserves.
It’s a metric that is vital to belgium mobile database analyze, as Bold Commerce wrote last year: “Brands that aren’t tracking customer churn may find it difficult to know if their subscription program is healthy. Getting top-of-funnel acquisitions is exciting, but if it costs more to acquire those customers than what they provide in customer lifetime value (LTV) a subscription business could be in trouble.”
To help subscription brands map out a successful strategy to stave off churn, we’re including advice shared by Patrick Campbell, CEO and founder of ProfitWell, a Boston-based business offering SaaS solutions for subscription businesses across the world.
While we may have heard the term often, it’s important to fully understand the two main types of churn that affect subscription brands.