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March 14, 2023 | Authored by: Jesus Luzardo

What subscription C-level management should be concerned about today

Let’s talk about the C word.


Churn reaches the highest levels of a subscription company

There is no C-level executive or organizational pillar that is not affected by customer churn.

Marketing, operations, finance, and revenue – when a transaction fails, when a customer churns, the entire organization feels it. While a bit of churn here or there is natural and inevitable, that’s not what we’re talking about. We’re talking about systemic churn, and particularly passive churn – all those transactions that never went through and customers who dropped off, even when they didn’t mean to or want to.

That’s much more than a shame; it’s lost revenue and lost profitability. And it should concern every person in the company, starting with the C-level.

In a difficult economy, it’s even more serious

As the global economy continues to stagnate, consumer sentiment is suffering. According to a recent survey, 64% of American adults and 59% of UK adults are anxious about money. This inevitably leads to cautious spending, and increased risk of subscription churn.

In challenging economic times, when every dollar of income is hard won, churn should be even more of a concern to the C-level. And it must be dealt with.

Solving passive churn – the churn that never should have happened

The cause of churn is always some sort of friction.

Friction in subscriptions can happen in several ways. A failed transaction due to an expired credit card is friction. A payment error – say, an extra $20 taken off a customer’s credit card by mistake – can lead to aggravation, and a decision not to renew.

In both cases, in order to bring the customer back and recover the revenue, the company is going to have to chase them and convince them. And that takes time, manpower and resources.

The solution to passive churn is not picking up the pieces after the event. It’s preventing churn that is preventable, with the help of Vindicia’s Retain platform that identifies issues that lead to passive churn before they arise.

Churn is here to stay, and so is the solution

It’s time to tackle subscription churn head on. Don’t waste precious resources chasing customers that like your service and want to stay connected. These are the easiest sources of churn that you can rectify. All it takes is the right tech stack, and Vindicia can provide it. Book a demo today

About Author

Jesus Luzardo

Jesus Luzardo

Jesus Luzardo is VP, Global Head of Sales at Vindicia. As an international technology industry veteran, Jesus brings over 30 years of experience in commercial, marketing, strategy, operations and technology roles. Prior to Vindicia, Jesus was Head of Marketing for Amdocs in the Caribbean and Latin America region, driving marketing to significantly expand Amdocs’ sales pipeline. Before Amdocs, he was Head of Sales for Utiba (acquired by Amdocs in 2014), focusing on mobile financial services. His experience includes two years as Head of Corporate/B2B and CCO at Cable & Wireless, and 15 years with Motorola. He lives by Vince Lombardi’s motto: “Perfection is not attainable, but if we chase perfection we can catch excellence.” Jesus holds an MBA from Universidad del Zulia (Venezuela), a B.S. in Electronic Engineering from Universidad Rafael Urdaneta (Venezuela), and Advanced Management certifications from Kellogg Institute of Management and IESE (Universidad de Navarra, Spain).