Strategies to Help Reduce Churn in Subscription Based Products

Strategies to Help Reduce Churn in Subscription Based Products

Customer retention. Something that many businesses have difficulty with, and it can be hard to identify what is causing a high churn rate. We’re going to be looking at a few strategies that you can implement to help reduce churn, keep your customers happy and lower the leaver numbers.


The first thing you need to do is identify why your existing churn is leaving. If you don’t already have a process in place to gather this information, then when your customers call to cancel, ensure that your team is asking the reason why they are canceling.

Make sure this information is stored somewhere you can run monthly reports from and analyse the responses. This information will help you determine what actions are needed in order to continue to lower your churn rate. Once you’ve collected enough information and collated it, you should start with the highest reason for leavers whether that be service, price, competition, etc.

Lead Quality

If you’re finding that the reason people are leaving is that they were still in the information gathering stage of the buyer journey and signed up to see what your service was like then you may need to look at the quality of your leads.

Bringing in low-quality leads may inflate your sales initially but you’ll see a huge churn rate because of it. The way to tackle this is to look at how you bring your leads in; do you do paid advertising? Do you have outbound sales teams?

Look at the quality of your target audience when it comes to your paid advertising. Where are they in their buyer journey? If you’re wanting better quality leads then you may need to look at targeting people who are in the buying stage rather than the information gathering stage.

Tweaking your target audience can help to reduce your churn rate by bringing higher-quality leads in who are more likely going to be sticky customers as they’ve already done all their research.


If your information gathering is telling you that price is the issue for most customers, don’t jump straight to lowering your prices to be competitive. But look at demonstrating the added value that you offer vs your competitors using your USP via marketing channels.

Even if someone is cheaper than you if you demonstrate that for a slightly higher price they would get more added value out of the service than with your competitor, it may sway their decision.

You can do this even before they become a customer within your marketing to help ensure they’re aware of the value before signing up and will, therefore, be stickier customers, rather than simply going to a competitor because they’re slightly cheaper.

Satisfaction Levels

If the data you gathered is indicating that your customer satisfaction levels are the main reason for your customer churn, look at your internal processes. Are your teams trained to the standard they need to be to effectively deal with customer queries?

Perhaps implement a rating system for how the query was dealt with by the team member. Not only does this give you a better understanding of areas of improvement are needed but it also gives the customer a space to express themselves.

You could also look at introducing a monthly NPS (Net Promoter Score) survey to your customer base and there are a few reasons why you should. Firstly, you’re asking the customer their opinion of your company on a regular basis via a numerical scoring system. If the number drops dramatically one month you can be proactive and try to solve the issue the customer is having.

Retention Strategy

If a customer is canceling their subscription, triggered email marketing campaigns can help to retain them automatically once set up. Email marketing is a powerful tool so when used to try to retain customers, there’s a higher chance of success as a first attempt measure. Perhaps offering a free month’s worth or a free item in their next order.

If they still want to cancel their subscription have a member of your cancellations or retention team reach out to them over the phone and see if there’s anything else you can offer them for their business. But remember to always ensure that ay strategies you implement never cost more than the lifetime value of your customer.

I'm business helper , i have 20 year experience in business management sector. I help many business owners to grow business. My passion is helping fellow entrepreneurs and small business owners succeed.

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