Do’s and Don’ts of Subscription: Communicating About Upcoming Renewal – 3/5

Definition and context

Subscriptions start with an initial purchase followed by renewals. Renewal payments are crucial; without them, the subscription ends.

Balance is key:

• inform subscribers about renewals without pushing them to cancel.
• Notify them neither too early nor too late.
• Clearly separate renewal information from marketing content.

There are two necessary communications:

• Before renewal, inform subscribers about the upcoming transaction. 
• After renewal, confirm the transaction.

Regulators’ preference 👮

Before renewal:

They require customers to be informed:

• Which subscription we are talking about by specifying the name of the service and the expiration date of the subscription.
• By a communication (e.g. an email), neither too close nor too far from the transaction date that will indicate the amount due, the transaction date and the new expiration date of the service.
• About the ways to unsubscribe (before renewal) and get a refund (after renewal).
• Any price change compared to the renewal price called out at purchase.
• All of above must be part of a specific communication.

After renewal:

• The general rule of e-commerce applies. You must send a confirmation email. It’s an invoice.

👍 The Do’s 👍

Before renewal:

• Dedicate a specific email that contains all the requirements of the regulators listed above.
• Specify the method of payment that will be used (e.g. showing the last digits of the card number or a piece of the PayPal account) so the customer can ensure there are enough funds.
• Inform customers they have X days, from this message, to cancel their subscription. And therefore they won’t be changed.

After renewal:

• Send an order confirmation message with the amount of the transaction, the future expiration date and remind customers about the recurring nature of the subscription. Inform about the ways to cancel the transition and get a refund.

👎 The Don’ts 👎

Before renewal:

• Don’t send the communication too far in advance in the hopes that customers will forget about it. Nor too late, which would prevent the customer from canceling subscription. 
• Don’t use an email subject line that could cause the customer to ignore it. Don’t build your email to be identified as spam.
• Don’t mix renewal details with marketing information, even if it’s useful to the customer. It’s considered as a way to hide information.

After renewal:

• Don’t try to prevent the customer from canceling the transaction, or requesting a refund.