Voluntary churn is when a customer chooses to cancel their subscription. You’ve likely got systems in place to keep that from happening.
Involuntary churn is when customers get kicked out of their subscription unintentionally because of operational glitches; payment failure issues—an expired or stolen credit card—are the chief culprit.
It’s estimated that a whopping 20% of total churn can be attributed to the involuntary variety. So you may be missing out on a big opportunity if you’re not working to reduce it.
Involuntary churn is when subscriptions are unintentionally canceled due to operational glitches; payment failure issues are the chief culprit.
Up to 20% of total churn can be involuntary. You may be missing out on a big opportunity by not reducing it.
The Seattle Times newspaper is a great example of a company that’s worked hard on this. When they learned that 62% of their churn was involuntary (because the paper couldn’t process a payment), they focused their efforts on creating a more seamless payments experience. The result? They improved retention by 25%.