With an estimated 27.4 million US consumers at risk of canceling at least one subscription in the next 6 months, subscription services are looking for effective ways to retain subscribers – and according to new research from Recurly, a pause feature could be one productive approach.
Indeed, among at-risk subscribers, half (51.8%) say they would be very or extremely likely to pause a subscription if the option was available.
In terms of the average churn risk, B2C subscription services are looking at a potential 16.4% of subscribers who are “somewhat,” “very,” or “extremely” likely to cancel their respective service, based on Recurly’s survey of almost 2,000 subscription customers.
Education and training services face the highest potential churn rate (25.2%), while streaming services have the lowest share of subscribers likely to cancel (11.7%).
Separate figures from Parks Associates illustrate the strength of streaming subscriptions, with more than 3 in 4 US households now having at least one such service, though it also notes that churn rates are increasing for these services.
In other categories, one-quarter (24.2%) of consumer retail product subscribers are likely to cancel, with a similar share of digital media services subscribers being at risk (23%).
Across the board, consumers show considerable interest in using a pause feature rather than canceling altogether.
Just as education and training services face the highest potential cancellation rate, they have the highest percentage (66.4%) of subscribers who would pause their subscription were it available.
Digital media subscribers follow (55.3%), while half (49.5%) of at-risk subscribers would pause a streaming subscription and 45.8% would pause a consumer retail product subscription. Read the rest at Marketing Charts.