Reduce Churn Rate by Transforming Data for Subscription Companies

The subscription market is proliferating, and there are plenty of reasons why. The increasing numbers stress the fact more than ever to get ahead in this competitive space.

Let's talk about the importance of reducing customer churn and how you can achieve this.

The Global Subscription Market Size
In 2020, the global subscription market was worth €617 billion and is expected to grow substantially. On the other hand, the subscription e-commerce market is also growing at an incredible rate. The e-commerce segment by itself is expected to reach €652 billion by 2025. The above estimates represent a whopping increase from before, implying that this is the era of  subscription!

If you're an e-commerce or a software company, you'd already know the importance of subscriptions and how much revenue they can bring you. Subscription services provide companies with a stable source of recurring revenue, which is essential for businesses to grow and scale. Given the tremendous growth potential of the subscription e-commerce market, it's no surprise that more and more companies are taking actions in this increasingly competitive environment. So if you're thinking about starting a subscription business, now is the time to do it!

The Nemesis Of Subscription - Churn In Subscription Economy
Subscriptions and churn go hand in hand. Subscription churn refers to customers canceling their subscriptions and thus, hindering a business's growth. According to statistics, the average yearly rate of churn on subscriptions is around 6% in the B2B industry and 8% in the B2C industry.

Competition In The Subscription Economy
There's no doubt that the subscription economy is growing. In fact, it's expected to grow by nearly 100% in the next five years. As more and more businesses adopt this model, competition will increase. So, how can you ensure that your subscription business stands out from the crowd? Here are a few tips:
1. Offer a unique value proposition. What can you offer that your competitors can not?
2. Create a seamless customer experience. Make it easy for your customers to do business with you from sign-up to cancellation.
3. Analyze churn when it happens. It may sound logical, but let’s stress it once again: you
have to simply find out why customers decided to leave.

Learn How To Retain Customers With Predictive Churn Modeling
Predictive churn modeling is a hot topic in the world of data science, and for good reason. Churn is a major issue for businesses across industries, and being able to predict which
customers are likely to churn could be hugely valuable. There are a number of different approaches to predictive churn modeling, but one of the most popular ones is machine learning. Machine learning is a powerful tool that can be used to automatically identify patterns in data, and this can be used to build models that predict churn. One of the great things about using machine learning for predictive churn modeling is that it can be automated. Once a model has been trained, it can be deployed and used to predict churn for new customers automatically. This can save businesses a lot of time and money, as they don’t need to manually analyze data to try and identify which customers are at risk of churning.

If you’re interested in predictive churn modeling, consider leveraging our Churned AI Engine - a software driven by a bunch of advanced machine learning models that helps you minimize churn and maximize upsells.

A plethora of companies are already using the Churned AI Engine, as it provides them the
following benefits:
● Which customers have a high probability of Churn?
● When would they churn?
● Reason for churning.
● How to retain customers and reduce churn rate.

Join us on the journey of fighting churn.