We talked with our friends at Loop Subscriptions.
Something interesting came up: most subscription revenue drop-offs?
Not cancellations!
Loop's latest data analysis reveals a surprising truth. It changes everything about retention strategy. Forget cancellation obsession.
further in depth reading
This is a collection of articles that will provide you with more information about our FREE email marketing course.
The REAL Culprit Behind Lost Revenue Isn't What You Think
Brands fixate on cancellations. But Loop's analysis of 250,000+ orders using their new Order Wise Analytics dashboard shows cancellations aren't the biggest threat.
- Skips are 2X higher than cancellations (11.19% vs 4.86%).
- Rescheduled orders: 6.50% of drop-offs. Friction point.
- Paused orders (1.62%): often lead to cancellation. Warning sign.
This data is clear: customers aren't always rejecting your product. They need flexibility and better communication.
Industry Breakdown: Who's Suffering Most (and Where)?
Impact varies. Loop's data reveals vulnerable subscription types:
- Meal Subscriptions: 32.55% Drop-Off (Highest Overall!) Changing needs? Meal fatigue?
- Haircare Products: 26.90% Drop-Off with 13.70% Skipped Orders. Product buildup? Wash frequency?
- Gym Supplements: 27.95% Drop-Off with High 15.09% Cancellation Rate. Dissatisfaction? Changing goals?
- Daily Supplements: Only 17.50% Drop-Off (Customers Stick with Essentials!) Routine wins.
Tailor strategies. What works for meals won't work for supplements.
The Communication Gap You Need to Close NOW
Customers communicate through actions: skips, reschedules, pauses.
Not always "cancel forever." Often: "need a break," "bad timing," or "needs changed."
Shift focus. From reactive win-backs to proactive engagement.
Offer flexible solutions.
3 Actionable Steps to Recover Lost Revenue (Before It's Too Late):
Loop's data offers solutions:
- Implement "Pause" Triggers: Customer skips? Auto-SMS a pause offer. Paused customers are 93% more likely to reschedule! Game-changer.
- Create "Skip Recovery" Email Flows: Don't let skips vanish. Target emails with:
- Personalized recommendations.
- Benefit reminders.
- Flexible options.
- Incentives. Loop sees up to 35% recovery!
- Develop "Flexible Scheduling" Direct Mail: Tangible touchpoint. Pre-delivery reminders with a QR code for easy date adjustments or pauses. Empower customers. Prevent skips.
The Bottom Line
Stop chasing cancellations. Start preventing drop-offs. Focus on skips, reschedules, and pauses.
Leverage Loop's Order Wise Analytics. Implement these steps. Shift to proactive engagement. Build a flexible, customer-centric experience. Boost loyalty. Increase your bottom line.
