Insights: Should Subscription Companies Make Cancellation Easier?
Should subscription companies make cancellation easier for their customers? Some of the most well-known companies in the industry say "YES!" It seems counterintuitive at first glance, but once you understand the details it makes total sense.
From the WSJ article (full article)
- "ClassPass, Harry’s and other subscription services hope easy cancellation policies could actually help their businesses."
- "Easy cancellation policies could actually help businesses lure in more subscribers and encourage more customers to come back if they have left, said Peter Fader, a professor of marketing at the Wharton School of the University of Pennsylvania. Such policies, he says, make the subscription experience more personal by making customers feel fairly treated."
- "A 2018 California regulation began requiring companies lets consumers subscribe online to also opt out online."
- Why is it strategic to invest in your cancel experience? Because you are +300% more likely to bring back a previous customer vs. acquiring a new customer. (Journal of Marketing Research)
- According to an Accenture survey, 81% of consumers who switched services said that companies could do something to retain them.
- Bellwethr's RetentionEngine has proven that simplifying cancellation results using personalizations results in saving up to 41.1% of cancel requests for your customers.
To learn how you can utilize personalization in your cancel experience visit RetentionEngine.com
*article image source: WSJ