December 21, 2020 | Authored by: Mike Daley
How to prevent cancelations by boosting engagement
Think of low engagement as enemy number one for a subscription service. As a subscriber’s interest fades away, their churn risk increases. Eventually, many subscribers hit zero engagement. When that happens, they’re not only likely to churn—they could cancel. Why pay for a service you don’t use at all? Your mission is to spot low engagement and find a way to reignite your subscribers’ interest.
At Vindicia, we study all the elements that contribute to subscription success. We then develop data-driven approaches that make subscription businesses more successful. That’s all part of what we call subscription intelligence. Using subscription intelligence, we’ve found ways to reduce involuntary churn by up to 30% more than traditional approaches, but identifying active churn through a customer’s engagement has been a tough nut to crack. That’s why we’re so excited to join with our new integrated partner Redfast. The Redfast solution reduces active cancelations by as much as 25%.
Monitor users and keep them engaged
You can use our integrated solution to monitor for changes in subscriber behavior. It tracks subscription use for each subscriber, and spots variations in behavior. Then, it delivers targeted guidance in the form of one-click suggestions. These personalized suggestions help keep subscribers engaged, and direct attention to high-value features. Subscribers get more from your service—and you reduce the risk that they will cancel.
Proactive monitoring with the integrated Redfast solution lets you identify and resolve risk factors by personalizing offers, suggestions, and promotions in real time. The right suggestion reaches the right person at the moment it’s likely to make an impact. Suggestions feel natural, and following your guidance is effortless for subscribers. You get a nearly unlimited ability to customize monitoring and combining that data with business information in real time—no coding required. It’s like you’re able to pick people out from the crowd, create a segment of one, and present an individualized option. That’s personalization that removes friction for users.
What about other engagement practices?
You likely use other techniques to keep users engaged. For instance, email is a popular communication method to entice subscribers to visit your service. Once there, you likely have some personalization or targeted content options. Those tactics work—to a point. The main weakness is the lack of a real-time link to usage and what the customer is doing right now.
An email suggestion that gets a subscriber to visit your service may seem like success (and it’s a step in the right direction), but what happens next? Our integrated solution answers that question by delivering guidance for users in real time. Sub-millisecond latency guarantees that you’ll reach users while they are using your service. As interactions with your service become more enjoyable, valuable, and memorable, churn risk falls.
Redfast in action
A Fortune 500 media company turned to Redfast because its team wanted the ability to react proactively to declining or increasing consumption. Email, SMS, and push campaigns weren’t delivering desired results. The company saw a need to incorporate one-click actions driven by real-time usage data to increase engagement. In just four weeks, the company went from start to expected ROI—and it’s just getting started. The results included:
- 20% increase in retention
- 28% increase in trial conversions
- 53% increase in monthly to annual conversions
- 318% increase premium feature utilization
Over time, that impressive retention number may even get better. Why? More people are using premium features and converting to annual options. When you convert a subscriber to an annual membership, you do more than lock them in for 12 months. You get 12 months to wow them and make using your service a bigger part of their routine. By using targeted guidance to keep their engagement-level high over that year, it’s more likely that you’ll be able to keep them for another year—at the full annual price.
The spike in premium feature use thanks to this solution is interesting from a retention perspective too. Consider how premium feature use helps cut churn. By drawing people to high-value features, you’re helping them learn (and like) the things your service does best. That’s a huge plus when people look to reduce spending on subscriptions overall or when they get a trial offer from a competitor. High engagement puts your service into the category of must-have subscriptions. And getting people attached to your premium features calls their attention to options your competitors may lack.
Talk to us about addressing active churn
When you overcome all the causes of churn, you keep every subscriber and their revenue longer. Monitoring subscribers in real time and engaging them with personalized actions are key to retention success. The subscription experts at Vindicia are excited to see how well our integrated Redfast solution delivers. You can combine Vindicia and Redfast to see retention skyrocket. Together, Vindicia and Redfast can cut involuntary churn by 30% and cancellations by as much as 25%. Learn more about how Vindicia and Redfast can help you crush churn.
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