Give me 5 Tips on How to Reduce Voluntary Churn and Retain Customer Loyalty

3 minutes

Hi there, and welcome to our “Give me 5 Series!” where we share five useful eCommerce tips that will help improve your strategies and pave your way to success.

In our newest episode, Alina Motorga, Product Manager at 2Checkout (now Verifone), talked about five tested strategies to help you reduce voluntary churn.

Naturally, the churn rate of your business has a direct effect on your revenue, profit margins, and, ultimately, on your entire business.

To minimize those risks, there are countless strategies that you can implement to reduce voluntary churn and boost your revenue and customer loyalty.

This brings us to the five proven strategies on how to increase your recurring revenue.



Number one:  Encourage your customers to auto-renew

Auto-renewal is a billing model where your customer’s payment details are charged automatically at each billing interval, without requiring them to take any further action.

It’s safe to say that auto-renewals are a win-win situation for companies and for customers, leaving the customer in complete control, as they can choose to disable auto-billing at any time.

As a result, clients can enjoy uninterrupted service without worrying about losing access to your product, including their stored preferences, or re-enter payment details after a subscription ends.


Number two: Give your customers the freedom to pause subscriptions

An extremely efficient way to reduce voluntary churn and increase trust in your brand is to provide the customers with the option to pause subscriptions.

From various reasons, customers need to minimize their expenses, and understanding their needs will help you win them back afterwards. It will also give you important insights into why they choose to discontinue, which is an important pillar for the marketing department.


Number three: Manage renewal reminders correctly

Now that we’ve established what renewals are and how they can benefit both parties, the next step is taking advantage of them by choosing the optimal timing and frequency.

Reminder emails for manual renewals could be sent at 30 days, 7 days, or even just 1 day before expiration, and they should all include consistent offers and special discounts for enabling auto-renewal. You can even act early, with a reminder email campaign that starts 180 days before the expiration date to lock in longer-term loyalty.

Another idea is to build discount campaigns that apply to all or even specific upcoming recurring charges of a subscription plan and target certain customer segments with discounted renewal prices. When doing so, make sure to offer specific discounts early before their subscription is due to be renewed.

One thing to keep in mind whatever option you go for is that notifications for renewals should be simple and effective, so it won’t create frustration for customers.


Number four: Build retention by using cancel flows

Although it might seem illogical, you might want to think about incorporating “cancel flows,” or clear paths within your applications and customer portals that give customers the option to cancel your service. Offering your customers a clear exit path will give them the feeling they are in control and will build trust in your brand.

For this you can use incentives such as free trial upgrades for a predetermined period, rewards for loyal customers with discounted upgrades, or discounts for converting to a recurring billing plan for more convenience.

As I mentioned earlier, timing is essential and using tools to analyze past actions and results to predict revenue streams will help you identify warning signs your customer exhibits before they might cancel.


Number five: Optimize your support and renewal processes

Paying close attention to your customers’ needs is a must.

Don’t just rely on what you think might work for your customers. Instead, try to perform tests on renewal notifications (templates, timelines, prices), renewal emails, and migration campaigns. By doing so, you can determine what strategies are truly effective and what strategies are not.

Another aspect to consider in this area is your support flow because it is the way your customer communicates with your brand. If you think about it, making it easy for your customers to know that they can reach you anytime to ask about renewals, or anything else, can be a very important influence on their decision to renew.

As a bonus tip, always be proactive and ask your customers for feedback. This will create a great foundation for satisfaction and retention.


There you are! You now have five key features to consider when thinking about how to reduce churn rates for your business.

Thank you so much for watching! If you have any questions or suggestions, feel free to share them in the comments section. We wish you good luck and we will see you next time with more innovative new tips!


Check out our previous “Give me 5!” episode here to discover the five best practices that will help you understand why a partnership with a Merchant of Record is an optimal solution to running a global online business.


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