We are pleased to officially announce Churn Buster as a Recharge Premier Partner. Churn Buster is a leading subscription retention platform dedicated to helping merchants reduce churn, improve the customer experience, and increase lifetime value (LTV).
In today’s ecommerce market, merchants are faced with high operational and acquisition costs, increased competition in every sector, and the challenge of consumers’ own cutbacks as inflation rises. Retaining the customers you’ve fought hard to win can prove to be overwhelming and challenging, and it’s difficult to know where to start or how to track improvement.
With all this in mind, one thing is certain: The often hidden cost of unoptimized churn is no longer sustainable.
Since 2018, as a Recharge tech partner, Churn Buster has helped fast-growing merchants retain hundreds of millions of dollars in revenue and millions of subscribers. With this premier partnership, Recharge merchants will be able to tap into even greater benefits of optimized retention, increased LTV, and improved business health as they scale.
“Churn Buster has proven to be a powerful churn prevention tool for many of the merchants who use Recharge over the years.This new elevated tech partnership is part of an already valuable integration that we will continue to improve upon for our merchants as they continue to grow.”
—Matt Houlemard, Technology Partnerships Manager at Recharge
What is passive churn?
One of the most valuable (and lowest effort) ways for subscription merchants to improve retention and increase their overall customer LTV is to address passive churn.
Passive churn is a silent killer. It’s difficult to see, often misunderstood, and too often neglected. However, the fact remains that many merchants are losing money involuntarily due to failed credit card payments. On average, 10% of renewal payments fail, which can account for up to 50% of overall churn. With Churn Buster’s tried-and-true approach to dunning, industry leaders are able to recover over 90% of these subscribers.
Plugging in to an advanced dunning process is hands down the easiest, most impactful way to improve retention today. However, failed payment churn does not exist in a bubble. The difference between merchants recovering 90% of payment failures vs. those recovering 20% (using the exact same dunning process) lies squarely in the active churn column.
There is a direct correlation between active and passive churn rates. A customer’s desire to cancel is tightly linked to their desire to provide an updated credit card after a renewal payment fails. Active and passive churn rise and fall together.
It’s why it’s important to look holistically at the many factors that impact your subscribers’ desires to stick around.
What is active churn?
One of the most impactful ways to both reduce active churn, and gain insights that help address churn reasons much earlier in a customer’s lifecycle, is with a custom cancel flow.
Over 30% of subscribers can be saved after they hit the cancel button.
Allowing subscribers to reschedule an order rather than cancel, or dynamically serving offers to specific customer profiles are just a few of the ways merchants can use cancel flows to make “saves” they otherwise would have lost.
Churn Buster’s team of senior level payments experts, customer experience specialists, and veteran ecommerce operators are dedicated to helping merchants dial in lasting improvements to retention. Their approach places upfront focus on going after the lowest hanging fruit, making the biggest gains with the lowest effort. This establishes a strong baseline and industry benchmark for ongoing gains from a variety of incremental improvements, like A/B testing, last-chance offers, high-value alerts, and more.
It’s never been more important for subscription businesses to level-up their subscriber retention. It’s also never been easier. All merchants using Recharge have access to our integration with Churn Buster through the “Apps” tab of your Recharge application. The partnership is also available across platforms, including Recharge Checkout on Shopify, Shopify Checkout, and Recharge Checkout on BigCommerce.
For more information, or to sign up for this service, visit the Churn Buster + Recharge partnership page.