Growth April 24, 2020

Tip: Prevent churn by letting customers pause their plans

Growth Bites @growthbites

If you only give customers the option to cancel their subscriptions, you might be losing people who would have actually preferred a less final option. Reduce churn by allowing them to put their subscriptions on hold.

@nickfogle of Wavve ($83,000/mo) saw an immediate 3% decrease in churn when he started allowing his customers to pause their subscriptions instead of canceling outright. His paused users weren't paying anything so it was a lot like losing customers at first, but he found that they were way more likely to reactivate. And when they did, that was money in his pocket that otherwise would have been lost. If you decide to give users the option to pause, you can increase the likelihood that they'll come back by sending email reminders and limited-time offers. You can even let them set a date for the plan to automatically reactivate.

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  1. 1

    Actually that's what I've been doing when a customer says they want to "cancel."

    Am I doing it wrong?

    1. 1

      There's no wrong way to do it :) You might still benefit from adding a pause option, though — it makes the action seem less final in the user's mind so they're more likely to come back.

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