Learn how to grow a successful subscription business Free resources to accelerate your growth

Learn how to grow a successful
subscription business

Free resources to accelerate your growth

How to turn a subscription cancellation into a reactivation

So you have launched your Shopify subscription business- things are going well and then suddenly- the cancellations start rolling in. Obviously frustrated, you find yourself wondering what went wrong, and why.

With ReCharge, you are able to determine the reason for a customer canceling, which allows for a more customized approach when attempting to regain the relationship. This is the perfect time to adjust your business, and to find out what works, and what doesn’t.

Shopify subscription service

Armed with this knowledge, you should you proactively approach a canceling customer. While doing so, always remain positive, open to suggestion, and genuine. Call them, send an email– or both. In 2015, personalized phone calls are a rarity, and can help differentiate your business as being customer centric. However, if your volume and staffing does not allow for such call, or even if it does– you should always follow up with an email that reads something like this:

Dear James,

Thank you so much for your business. I was just alerted that you cancelled your subscription with us due to pricing. My co founder and I launched this business 2 months ago, and are grateful for your candid feedback. Upon consulting with one another, we have decided to offer you a 20% lifetime discount on the subscription. Would this make our plan fit better into your budget?

 Death Before Decaf,

Tony Smith

Co-Founder | Worlds Best Coffee Box

Knowing the reasons behind a customer canceling a subscription gives you, the business owner, the ability to overcome the customer’s concerns and objections. Moreover, it allows you to get to know your customer, and how your products fit them, and the market as a whole. It also enables you to modify your subscription offerings to best fit your target market.

This is too expensive!

If a customer is unable to justify the cost associated with your subscription, they are highly likely to cancel.

What to do?

Offer them a discount – By doing so, you not only show that you care about their continued business relationship with you, but that you are willing to modify your cost in order to win back their relationships.

Offer varied price points – Perhaps their needs have shifted, and they no longer require the same volume of product or service that they signed up for. By giving your customers additional options, you may convert back the customer to subscription.

 I already have more than I need!

When a client has leftover product from the previous cycle, their likelihood of cancelling expands exponentially.

What to do?

Offer to change shipping frequency– Meet their needs by altering the frequency that you ship the customer their subscription.

Follow up– If a customer has cancelled because they have too much, and you are unable to recapture their subscription, send a two month follow up email to see if they are out of the product, and if they want to re-subscribe ( with a discount- of course!)

 I need it sooner- it is not coming fast enough!

If a client is running through their product more quickly than they are receiving shipment– great!

What to do?

This is one of the better problems to have! Offer to change shipping frequency– Once more, altering the shipping frequency will alleviate a customer’s challenge of not having enough product within their needed timeframe.

I want a different product.

The customer is no longer happy with the product they are receiving from your subscription service.

What to do?

Ask open-ended questions– “ Why are you no longer happy with our product?” Determine if you are able to meet their needs with a different product in your store. If you do not have the product that they are looking for, ask for feedback and take notes, this could be a learning opportunity for you that eventually expands the products offered in your marketplace.

I no longer use this product

Your client has stopped using the product to which they are subscribed.

What to do?

Ask open-ended questions– “ Why have you stopped using our product?” “What could we do differently to meet your needs?”. Discover why they have stopped using your product. Have they gone to a competitor? Are they allergic to an ingredient? The possibilities are endless, and even if you lose them in the short term, your attention to detail and demonstrated care for the relationship could result in the customer re-subscribing to your service, or referring a friend. Furthermore, this gives the opportunity to re-evaluate the products that you offer, and to explore holes in your business model.

This was created by accident. I don’t know why I am subscribed!

The customer did not intend to subscribe to your service.

What to do?

Ensure that your marketing verbiage is clear– Review all marketing material and confirm that subscription details are properly outlined on both the product and checkout page.

I want a different flavor/scent/count.

Your customer likes your product, but wants something a little bit different than what they had initially subscribed to.

What to do?

Ask fact-finding questions– “What do you love about your current product?” “How can it be improved upon?” If you are able to meet their needs through your product line, recommend moving them over into a different subscription package that caters to their specific tastes. If you do not currently meet their needs, add their name to a spreadsheet with their preferences, that way you can send an email if your product offerings change, hopefully recapturing their subscription.

 Unfortunately cancellation is a major component of subscription service. Use each cancellation as a lesson on ways to grow and evolve your business. You will garner invaluable information by communicating with your canceling customers, which can result in price changes, frequency changes, and product changes. Utilizing the best practice of following up with each cancellation will positively impact your business, and is highly recommended.

One last thing to consider when launching your Shopify subscription service using ReCharge is controlling your customer’s ability to cancel. Although you can make this component automated, we recommend that you do not do so when you are first launching your business. Having personal communication with your customers during the first stages of your business will help you modify your product offerings, get important feedback, impact your business strategies, and adjust your subscription frequencies. When your business is in a more advanced state, turning on the automated feature will allow your clientele autonomy over their subscription service. That being said- never forget to follow up with your cancelling customers, you never know when you can recapture their business!