Increase retention by ditching monthly subscriptions in favor of yearly
Maura Vella of 105F replaced month-to-month subscription plans with year-long memberships and saw a 34% rise in membership. Now that clients are no longer able to pause or cancel at any time, retention is at an all-time high. Revenue also spiked and is much more steady. After trying "everything" to attract new clients and keep old ones, she says this small tweak has been a "game-changer."
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This comment was deleted 8 months ago.
This comment was deleted 7 months ago.
Good question. They aren't experiencing any churn from month to month. From what I understand, the fact that they won't experience churn for a year is a win in itself when compared to what they were dealing with before, even if people opt out in the future.
This comment was deleted 7 months ago.
Fair point, it could totally be the case that they know it's a bad offering and are trying to lock people in. I hope not. But I would guess that it's a seasonal business and they think that getting people to commit to a year of yoga is good for them - less likely that they'll get distracted by life and lose track of their wellness goals (I know I've done that a thousand times and wished I hadn't). Who knows?
TLDR: I don't think this is an inherently unethical tactic - but it certainly can be used unethically.
This comment was deleted 8 months ago.
This comment was deleted 7 months ago.
This comment was deleted 8 months ago.