The team and I were looking at the subscription side of a client's business today and noticed a trend: sharp drop-off from the first to the second month of a subscription. We often see this when customers can get a discount for subscribing. Instead of making a one-time purchase, they subscribe and cancel.
While this is considered "normal," all hope is not lost. While most customers aren't likely to let you in on their little scheme, it's always worthwhile to ask subscribers what led them to cancel. These insights can serve as valuable puzzle pieces to improve the subscription experience and maintain customer engagement.
While there are numerous tactics to address this issue, one approach emerged from our discussion today: use the start of a customer's subscription to re-educate them on why they subscribed and the benefits of doing so.
Here's how to put this into action:
- Initial Welcome Email: As soon as a customer subscribes, send them a warm welcome email. Remind them of the key reasons they subscribed and the value they'll receive from the service or product. Make it clear that you're here to make their life easier.
- Regular Communication: Throughout the first month, send a series of well-timed emails that highlight different aspects of your product or service. For instance, showcase real-life use cases with success stories or share tips on how to make the most of their subscription.
- Flexibility and Customization: Emphasize the flexibility your subscription offers. Mention that they can customize their subscription to fit their needs. This can include adjusting quantities, delivery schedules, or even adding new features or products to their subscription.
- Feedback Loop: Encourage customers to provide feedback during this time. Actively seek their opinions on how you can improve their experience. When customers feel heard, they're more likely to stay engaged.
- Vacation and Special Circumstances: Make it clear that you understand life can get in the way, and that's okay. If they're going on vacation, explain how easy it is to delay shipments. If they feel they have too much product, guide them on how to adjust their orders or reduce quantities.
- Personalization: Whenever possible, personalize your messages. Address customers by their name and tailor your content to their preferences and behaviors, such as their purchase history.
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This post originally appeared in Edition No. 164 of my newsletter. Subscribe here.
Monday, October 30, 2023
