How to urgently increase the number of subscribers ? – Part 2

I run a subscription business and I urgently need to increase the number of subscribers. 📉 In fact, according to my projections, I’m going to miss my target. 🎯

In the first part of this article, we looked at how to deal with the emergency while adopting a rational approach. Before taking action, you need to verify the objective, the KPIs to influence, and the rational allocation between retention and acquisition based on actual execution capabilities.

In this second part, we will look at solutions for increasing the number of subscribers immediately or at a later date. ⏱️ These solutions will be generic to cover all types of subscription businesses.

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1. The Mathematical Reality 🔢

First, we need to differentiate between the number of subscribers and the number of subscriptions. It’s possible for a subscriber to pay for multiple subscriptions; the number of subscribers is always less than the number of subscriptions.

Next, it’s important to clarify the calculation method. 🧮 Generally, this is the number of paying subscribers with at least one day remaining on their subscription.

This number is made up of:

• Each new subscriber (+1)
• Each existing subscriber who renews their subscription (+1) 
• Each existing subscriber who doesn’t renew their subscription (–1)

🗓️ The date on which the increase must be effective is crucial, especially when the actions target existing customers.

📅 For example: if I only sell annual subscriptions and the increase must be visible by December 31st, then subscribers whose subscriptions expire after that date won’t affect the count—so they don’t need to be targeted. If it’s July 1st, only 50% of my subscriber base can influence the year-end count. 💔 Unsubscribes negatively impact subscriber numbers regardless of expiration date.

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2. Solutions with Immediate Benefits ⚡

In an emergency context, here are the main solutions for increasing the number of subscribers in the Acquisition business:

• 💸 Price reduction for the first year to attract more subscribers (aim to boost CR%)
• ✨ Any new feature likely to create demand: new product, bundle, or payment method
• 📊 Expand the price range: entry-level products make the offer more accessible
• 💰 Increase marketing budgets via performance marketing & search engine ads

⚠️ Note: Performance marketing is an acquisition activity delegated to a third party, which can cannibalize internal efforts. The same applies to SEA, which may compete with partners. 🤝

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3. Deferred Profit Solutions 🕰️

If you have the luxury of time, it’s wise to focus on the retention business—taking expiration dates into account. 📅

1️⃣ Try to increase the number of subscribers who renew automatically. 2️⃣ Try to reduce the number of unsubscribes. 3️⃣ Try to increase the conversion rate if you have a manuel renewal flow. It’s important to know the percentage represented by each of these three segments to achieve the best ROI.

Here are some solutions that provide a non-immediate increase in subscribers by increasing the successful billing rate:

• Update payment profiles (e.g., update expired cards) 💳
• Optimize the number of billing attempts: neither too many nor too few attempts
• Add the most popular payment methods by country (not limited to Visa and Mastercard)
• Conduct transactions in the local currency to avoid additional bank fees 🌍

Here are some solutions that provide a non-immediate increase in subscribers by reducing the number of unsubscribers:

• Improve communication with subscribers throughout the lifecycle
• Align the renewal price with the perceived value of the service
• Incentivize subscription retention when the customer begins the unsubscribe process 🎁

Here are some solutions that provide an immediate increase in subscribers when there is a manual renewal process:

• Improve the user experience to make the process as simple as possible
• Offer incentives or gifts during the renewal flow🎁

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4. Today’s Solutions, Tomorrow’s Problems ⚠️

If it were easy to increase subscriber numbers quickly and without compensation, everyone would know about it. 🪄

Some actions, such as lifecycle improvements, take a long time to bear fruit but have the advantage of being sustainable. 🌱 Actions with the most immediate effects generally have negative effects on other parts of the business, especially in the long term.

For example:

• Any actions that increase the difference between the acquisition price and the renewal price will have a negative impact on the retention rate the following year. 📉
• If new customers acquired are less qualified than current customers, then their retention rates will be much lower than the current rate. The following year, the overall RR% will decrease even if the overall number of customers is increasing. 👎
• Massive investments in search engine advertising often lead to an increase in acquisition costs and a decrease in ROAS. 💸🔻

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👉 Key Takeaways 👈

1. Acquisition is the primary business concerned with increasing subscriber numbers. 📣
2. Sustainably increasing subscriber numbers takes time. This is why it’s important to carefully monitor and forecast subscriber numbers to detect any drift as early as possible. 📊
3. Customers acquired in a hurry are often less qualified than organic customers. It’s wise to be able to track their performance separately from regular customers. 🔍

#Subscription #RetentionMarketing #BestPractice #Growth