circuly blog.

Feature Release: Auto-renew Subscriptions

A way to counter churn in subscriptions is auto-renewal. But it is important to approach auto-renewal from both a legal and ethical perspective.

Garima Singh
Mar 2, 2022
Feature Release: Auto-renew Subscriptions

Customer churn in subscriptions is a result of a number of reasons from voluntary churn and involuntary churn to complicated extension steps and active time spent thinking whether a service is needed or not.

Insight about customer churn is crucial so that necessary actions can be taken. Insight will help you figure out things like, (a.) is customer churn for your product seasonal, (b.) is it because of lack of knowledge on how to use the product or (c.) is it because of the product itself - maybe it breaks down way too often.

Auto renewal can tackle involuntary churn to some extent. Especially if churn results from unnecessary communication between your customer and you.

The Problem 😣

If your customers, for whatever reason, are given a few minutes to think, “but do I really need this subscription?” or have to manually do something like send an email or get in touch with customer support to renew their existing subscription, what do you think will be the result? You know the result as well as we do; cancelled subscriptions.This happens more often than we care to admit. The question, “but do I really need this?” decides if you win or lose the battle, depending on which side you are on. If you are the customers, it’s probably a win for you. If you are the seller, well, for you it's a loss.

Implication 🙈

Spending time thinking about renewing a subscription can result in cancelled subscription, the implication of which is a higher churn rate. Manual renewal process adds up to significant time investment.

Solution 🥳

Circuly enables you to auto renew subscriptions even after the subscription period or the minimum subscription period has ended. Automatic renewal in the circuly operations backend prevents forgotten payments and unnecessary back and forth communication between your customer and you. Simply include auto renewal policy in your terms of conditions and circuly takes care of the rest.

Don’t of auto renewal

We advice not to cross the ethical line of reducing customer churn with questionable churn reduction tactics like:

  • Renewing customer subscriptions without properly informing them.
  • Making it difficult to cancel subscriptions.
  • Hiding the cancellation button

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