Monthly memberships are a way of life for most consumers. If there’s a hobby, an interest, or a need out there, there’s a subscription for it. A 2021 study conducted by FlexPay and PYMNTS found that 80% of consumers have at least one subscription, up from 72% the year before. But with this popularity comes the risk of fatigue. There may come a point in any subscription lifecycle when customers are simply worn out and decide to cancel their subscription. In other words, they’re in the depths of subscription fatigue.
What is Subscription Fatigue?
Subscription fatigue is the exhaustion customers feel when they are overwhelmed by the sheer number of subscriptions they’ve signed up for, or they’re faced with a seemingly endless number of plans or packages and can’t bear making one more decision. Sometimes people quit a subscription just to make life easier again. The subscription they joined to meet a particular need has become a burden instead of a benefit.
The easiest way to fight subscription fatigue is to keep customers happy with your service. People join a subscription because they expect to get something valuable from it. They have a problem to solve or a goal they want to achieve. You need to remind them you are the solution and it’s easy and convenient to work with you. There’s no need to go anywhere else.
People join a subscription because they expect to get something valuable from it. You need to remind them there’s no need to go anywhere else.
Improving Your Customer Relationships
Sometimes people just get tired of paying so many monthly fees. They decide to quit all their subscriptions in one fell swoop and carefully pick what subscriptions they start back with. That’s the ultimate example of subscription fatigue.
Maybe it’s not as drastic as that example, but a customer’s financial situation has changed, and they cancel to save some money. If affordability is the issue, you could offer a tiered pricing approach that saves them some money but still gives you a profit. Yes, you’d be earning less from them each month, but it’s better than losing them completely.
Giving customers the opportunity to pause their subscription for a couple of months can also reduce subscription fatigue. This gives customers enough time away that they will miss what your subscription gave them, and they can come back excited about your business again.
Customer Appreciation and Subscription Engagement
If your typical customer churns in month 8, it’s a smart move to give them a reward for their loyalty in month 7. Here’s when understanding your business is especially important. Make the gift something so exclusive they wouldn’t even dream of leaving. This loyalty reward will make membership in your program even more valuable.
Let’s not forget the Pareto Principle either. You know, the top 20% of your subscribers bring in 80% of your revenue. You can avoid subscription fatigue in this extremely valuable group by thanking them with exclusive promotions and treats. Something unique that you don’t give to your other subscribers. Whatever you give, it should make these customers feel special and valued. Customers who enjoy this sense of privilege are less likely to leave.
The Importance of a Seamless Payment Experience
Of course, none of these retention strategies will work if the customer’s payment fails. Everything hinges on a seamless payment experience. As a subscription provider, you can retain customers by using a Payment Authorization Management system that overcomes payment-related snags.
Payment Authorization Management (PAM) is the category name for FinTech solutions that helps improve the accuracy of payment authorization decisions. FlexPay’s Invisible Recovery™ platform is the leading failed payment recovery solution in this category.
The Invisible Recovery™ Solution
Invisible Recovery™ is an AI-powered solution that optimizes customer recovery by creating individual strategies for each failed payment, resulting in the best possible customer and revenue retention.
Our failed payment recovery solution works quickly while completely avoiding customer visibility to the failed payment, which eliminates the churn created when subscription customers are made aware of their payment issue.
FlexPay research shows Invisible Recovery™ delivers the highest rate of failed payment recovery, as well as sustained retention for months to come.
- Up to 70% improvement in failed payment recovery rates compared to other recovery solutions
- Up to 45% longer customer retention following recovery compared to other failed payment recovery methods
You’ve got the customers, now keep them longer with Invisible Recovery™. Learn more about Invisible RecoveryTM or book a demo today.