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How to Avoid Subscription Churn?

Ishita Banik Published on : 23 April 2021


Subscription churn is the rate at which a subscription company loses its subscribers. Starting from small to the leading OTT platforms, subscription churn happens to almost all digital service providers- more or less! A recent statistics says that the U.S. companies lose over US$ 135 Billion per year on an average due to the subscription churn. 

While the churn rate depends on multiple factors and varies for different B2B SaaS businesses, it is worth the attention of the business owners in order to prevent the associated revenue loss. And the good news is- it is avoidable by adopting a few simple tricks and tips. 

Let’s walk you through the simple yet highly beneficial ways to avoid subscription churn for your business-


  • Measure the Churn Rate: 


The first and foremost step to prevent anything is to have a crystal clear knowledge about it. So, how do you measure churn rate in order to reduce it in the near future? Well, there are several parameters that can give an estimation of it such as-

  1. Percentage of revenue that has been churned
  2. Comparing month-over-month user acquisition and subscriber conversion 
  3. Rate of monthly reduction in your total number of active subscribers etc.

Once you have a clear understanding about the churn rate and related figures for your business, it will be much easier to pinpoint why you are losing your subscribers.


  • Engage your Customers:


Lack of customers’ engagements implies a higher probability of subscription churn. In order to prevent this, you need to provide your customers with the most interesting and relevant digital products. For instance, a recent survey showed that Netflix’s churn rate is lower than 10% and it is mainly owing to its high customer engagements. There are various ways to keep your customers engagement high such as letting them get access to exclusive contents, providing personalized recommendations by using a good recommendation engine, keeping track of the trending products or services provided by other digital stores or OTT platforms, etc.


  • Provide Lucrative Subscription Models:


Coming up with the best possible subscription models for your customers may turn out to be trickier than it sounds. But you can win the game by keeping a few things in mind-

  1. What kind of subscription models your competitors are offering?
  2. Which subscription plans are the most popular ones among your subscribers?
  3. Which subscription models are the least preferred ones by your customers?

Working around the pros and cons of your existing subscription plans and chalking out the plans offering better value can minimize the subscription churn for your business.



  •  Offer Coupons and Discounts: 


Nowadays, most of the OTT platforms provide their customers with various discounts, coupons, and promotional offers. It is highly probable that the subscription churn for your business is driven by the more attractive subscription offers provided by your competitors. Survey says that more than 50% of the U.S. internet users claim that discounts have the biggest effects on their purchase decisions. Not only you need to brainstorm but keep yourself updated with the promotional schemes offered by the top brands to prevent subscription churn.


  • Take Customers Feedback: 


Providing your subscribers with what they are actually looking for, gets much easier if you let them give you feedback. Based on your customers’ feedback you can work on the weaknesses as well as strengths of your subscription models. This in turn will help you avoid subscription churn in future.


  • Strive for Flawless User Experience: 


You must make sure that your customers have smooth experiences while availing your services be it casual browsing or cartful check outs. Factors that influence user experience are 

  • Neat UI
  • Ease of access
  • Distinguishable front-end
  • Swift navigation
  • Content-image relevancy

Taking care of these things can help you more than you can imagine in boosting your customer retention rate.


Wrapping Up


Avoiding subscription churn is not an overnight process. You need to be as dedicated as you are towards working on customer acquisition models. All the leading OTT players have their own roadmaps to deal with subscription churn and you can adopt your own strategies based on the type of business and subscribers you have. And once you know how to avoid it, it will be an asset for your business in the long run.

Muvi Subscription Billing Management Solution gives you one stop solution for managing all your subscription related activities smoothly. It offers 17+ payment gateways, automated billing, smart record keeping, flexible billing, predictive intelligence-based analytics and insights, carrier-grade security, and what not! Take a 14-day free trial today to know how it can benefit your business!


Written by: Ishita Banik

Ishita is a Content Writer with Muvi Marketing Team. Apart from business writing, she is also an acclaimed author of three best seller romantic thriller novels. In 2020, she got featured in The Hindustan Times, a leading news portal as an inspirational Indian author.

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