Subscription Insights: Churn and 3 Ways to Reduce it
One of the key metrics in Subscription Business Management is churn. Churn, sometimes also referred to as attrition rate, is the percentage of customers who cancel their subscriptions during a given time period.
Churn rates tend to vary across industries, however, the reported business-to-business (B2B) average is 26% and the business-to-consumer (B2C) average is 35% (Gold 2017). Every Subscription provider should continually monitor this metric. But if you find that your rate is higher than these benchmarks, it's time to stop and ask yourself why.
The mpower Subscription Insights infographic below outlines 3 ways you can reduce your churn rate. By focusing on these essential areas, you can increase sales revenue, help your company recover acquisition costs more effectively and, ultimately, increase the bottom line.
Gold, Carl. 2017. The Subscription Economy Index. Zuora.