How Skip, Cancel, and Pause Options Can Actually Drive New Subscribers and Increase Retention of Existing Ones.
Many consumers view subscriptions as a bittersweet thing.
On one hand, subscriptions offer tremendous convenience to customers, eliminating the need to constantly purchase products they need regularly. On the other hand, the sheer number of subscriptions can become overwhelming, leading to subscription fatigue.
After over a decade of experience with subscriptions, customers have learned to spot bad deals that don’t provide much value and only aim to trap them with hidden T&Cs fine print.
But even though we often associate the Subscription Economy with terms like subscription fatigue and the graveyard of subscriptions, there is no denying that subscriptions will continue to rise and gradually become the norm. Consumers might be cautious of subscriptions but still want to subscribe to products and services they perceive as valuable.
In this article, we explore how the skip, cancel, and pause options can actually tip the scales in your favour and encourage hesitant customers to hit that “Subscribe & Save” button.
Every company wants to offer some sort of subscription.
Every company wants to offer some sort of subscription. Two main reasons why more and more businesses want to offer subscriptions are recurring revenue and meeting changing consumer preferences.
Recurring revenue
Recurring revenue is more valuable than one-time sales. It is predictable and helps companies make better predictions.
Changing consumer preferences
Consumer preferences are changing towards convenience, personalisation and flexibility.
Personalisation, convenience, and flexibility are some of the main themes in e-commerce in 2024, and coincidentally, these terms are also commonly associated with subscriptions.
If you want to know more about the benefits of launching a subscription-based business model you can refer to this article on the benefits of launching a subscription-based business model.
Consumer Packaged Goods & Subscriptions
Consumer Packaged Goods (CPG) are products that are consumed daily by the average consumer and typically need to be replaced frequently. CPG products are often purchased by consumers regularly and without much consideration, making them prime candidates for subscription services due to their recurring nature and consumer demand for convenience.
Taking inspiration from digital subscription companies such as Netflix and Spotify many CPG brands and companies have increasingly started offering their products as subscriptions under programs such as “Subscription Box”, “Membership” and “Subscribe & Save”.
These programs allow consumers to receive regular deliveries of their favourite products without the hassle of repeated purchasing. Whether it’s a monthly shipment of vitamins, a weekly supply of pet food, or a quarterly delivery of skin care products, subscription services streamline the shopping experience and ensure that consumers never run out of essentials.
By adapting to consumer preferences for seamless, recurring purchases, CPG companies are tapping into a lucrative market segment and reshaping traditional retail practices in the digital age.
20% discount or €20 off isn’t attractive anymore
Many brands offered discounts to encourage visitors to choose the subscription option instead of a one-off purchase. However, many brands have started experiencing a monetary discount that isn’t as attractive anymore, and one can easily extrapolate the reasons.
Reasons why price-based incentives are losing their charm
The declining effectiveness of traditional subscription incentives, like 20% discounts, can be attributed to several factors in today's market dynamics:
- Subscription fatigue - Consumers are increasingly cautious about committing to recurring expenses. The initial allure of discounts may not outweigh concerns about long-term commitment and potential hassle of managing subscriptions.
- Overused Strategy: Many companies now offer similar discounts, leading consumers to become desensitised or sceptical about the actual value gained versus potential drawbacks.
- Rising Competition: As more businesses adopt subscription models, differentiation becomes crucial. Companies need to offer unique value propositions beyond discounts to stand out in a crowded market.
In fact McKinsey & Company's research on subscription models suggests that while discounts can initially attract subscribers, sustainable retention depends more on factors like customer experience, service quality, and product relevance over time.
This indicates a shift towards customer-centric strategies rather than purely price-based incentives.
In summary, while discounts can still play a role in acquiring subscribers, their effectiveness in retaining customers over the long term is diminishing.
Companies are increasingly focusing on providing value through flexible and personalised subscription offerings to maintain customer loyalty and satisfaction.
Subscriptions: “But do I really need it?”
Consumers have increasingly started thinking about potential problems before committing to a subscription.
For example:
- "A subscription for cat food sounds great, but what if my cat suddenly stops eating this particular brand?"
- "A coffee subscription seems appealing, but what if I'm gone for two months and don’t need a bag every month?"
- "A meal kit subscription is convenient, but what if my dietary preferences change or I decide to eat out more often?"
These scenarios highlight the need for more personalised and flexible subscription options.
The Solution to making hesitant consumers still hit the subscribe button
Let's start by restating that discounts and monetary incentives initially attract subscribers. However, the thing that will make them subscribe instead of purchasing is the mindset that they are not being trapped, and this can be done with the power of flexibility. Have you ever noticed that you are much more likely to purchase a product when the return policy is straightforward? The same is true for subscriptions.
Tell your customers that they can skip, pause, cancel or change their subscriptions without any hassle.
The Power of Flexibility
1. Skip: Enhancing Convenience
The option to skip a delivery or service period is especially appealing to subscribers who may not need the product every cycle. For instance, if a customer’s pantry is already stocked, they can skip a month without having to cancel the subscription entirely. This flexibility reduces the likelihood of cancellations due to temporary oversupply, keeping customers engaged and subscribed.
2. Cancel: Building Trust
Surprisingly, making it easy for subscribers to cancel can actually lead to more sign-ups. Customers who know they can cancel without hassle are more likely to try your service. This transparency builds trust, making customers feel in control and less trapped by their subscriptions. A trustworthy relationship can lead to positive reviews and word-of-mouth recommendations, further driving subscriptions.
3. Pause: Providing Assurance
Life’s unpredictability can make even the most loyal subscribers hesitant. Offering a pause option allows subscribers to temporarily suspend their service without losing their commitment. Whether it’s due to travel, financial constraints, or a temporary change in habits, the pause option provides a safety net that can prevent permanent cancellations and preserve customer relationships.
Examples of companies doing it right
While there are plenty of companies out there that offer subscriptions to their products, we asked people internally within circuly to share insights about their subscribed products and why they like them. Here’s an overview of two of them.
Huel
Huel is a British company that makes plant-based meals, snacks, drinks, and supplements.
"I tried Huel for two months and loved the taste, but I kept forgetting to order before running out. I considered setting a calendar reminder, but then I discovered Huel’s Flexible plan with regular deliveries. My only worry was sticking to the same flavour and potentially not finishing a package before the next one arrived. However, the product page assured me I could switch flavours and change delivery dates. That convinced me to go for it, plus the 10% discount was a nice bonus."
Happy Coffee
Happy Coffee is a coffee subscription company from Germany.
“Well, I drink 5-7 cups of coffee a day, so I always need a steady supply. I'd been searching for a coffee subscription but didn’t like the idea of committing to regular deliveries. When I found Happy Coffee and saw that I could adjust everything—from the coffee flavour to the next delivery date—I knew it was the right fit for me.”
Both these replies have in common the value of flexibility being more important than a discount.
Self-management of subscriptions is important for your customer
An increasing number of consumers crave control over their purchases. In today's fast-paced world, the ability to self-manage subscriptions is becoming a crucial aspect of customer satisfaction. Providing customers with the tools to easily adjust their subscription settings—whether it's pausing, skipping, or cancelling deliveries—empowers them and enhances their overall experience with your brand.
According to a report, 27% of consumers cited the inability to pause or skip a subscription as a top reason for discontinuing it, while 23% pointed to the inability to change subscription frequency.
This data underscores the importance of flexibility and control in subscription services. In fact, the subscription economy has seen rapid growth, with businesses offering subscription models growing 4.6 times faster than the S&P 500 over the past decade.
Given these insights, it's clear that offering self-management options such as skipping, pausing, and cancelling subscriptions can significantly enhance customer satisfaction and retention. As consumers continue to prioritise convenience and control, businesses that provide these flexible options are more likely to attract and retain subscribers in the competitive subscription market.
Key features needed in a customer self-service portal
In order to deliver a smooth subscription experience to your customers, increase retention of existing subscribers and attract new subscribers, you can offer a few key features in a self-service portal.
- Change personal details
- Change payment details
- Download invoices
- Cancel subscription
- Change product
- Skip deliveries
- Pause a subscription
- Change order frequency
- Change delivery date
- Change the quantity of subscribed products
Important: While offering these features is great, make sure to highlight them on the product page to overcome any hesitation.
Conclusion
Incorporating skip, cancel, and pause options into your subscription model is a strategic move that can drive more subscriptions and enhance customer loyalty. By offering these flexible options, you demonstrate a commitment to meeting your customers’ needs, building trust, and fostering long-term relationships. In the competitive world of subscription services, flexibility and customer-centric policies are key differentiators. Embrace these options to attract and retain a loyal subscriber base, and watch your business thrive.
.png)
%20(4).png)
.png)
.png)
