One of the great mysteries for me is why so many otherwise sophisticated companies don’t focus on involuntary churn. Also known as passive churn or accidental churn, involuntary churn happens when a payment issue raises a flag that causes a merchant to cancel a customer’s subscription. In 70% of these cases, there is no fraud, so the company is literally turning away excellent customers.
Involuntary churn routinely impacts about 10% of Annualized Recurring Revenue (ARR), according to some estimates. In today’s episode, Vijay Menon, founder and CEO of Butter Payments, and I discuss what drives involuntary churn, why so many companies underinvest in this problem, and some key tactics to drive revenue growth through better payment management.
Love the show? Rate us ⭐️⭐️⭐️⭐️⭐️ and leave a review on Apple Podcasts!
Join the Subscription Stories Community today:
Making pricing simple can be really complicated, especially in the world of subscriptions, where every pricing change can affect how much your members trust...
Pricing is one of the trickiest parts of building a successful subscription model. You want to make the model simple, transparent and easy-to-understand, but...
Something I've noticed over the years is that there's a natural membership economy mindset among many family-owned businesses and organizations, not on the venture-backed...