Some of Your Best New Subscribers Already Cancelled Once

Some of Your Best New Subscribers Already Cancelled Once

When Meta recently attached monthly fees to premium tiers of Facebook, Instagram and WhatsApp, it took on a problem every subscription business already knows well. Persuading people to pay for what they once got free is hard enough, keeping them is harder, and winning them back after they leave is the part most companies write off entirely.

Rachel Sheriff, Chief Customer Officer at subscription management firm Recurly, thinks the third is where most companies go wrong. She says the scrutiny arrives almost instantly: a paid tier that feels like the free one with a badge attached rarely survives the comparison.

Paying Turns a Curious User Into a Demanding One

Recurly’s research found that value for money is the primary factor for 97% of consumers deciding whether to subscribe, which leaves little room for a tier that cannot justify its cost. Sheriff is direct about what a paywall has to deliver.

“You have to provide something in this paid service that feels really different,” she says. “Maybe it feels very exclusive, maybe it feels VIP, like you’re going to get something you never had access to before.”

The scrutiny does not ease once someone has paid, because a subscription now competes inside a crowded set of choices.

“Consumers don’t think about subscriptions the way they did five or ten years ago,” Sheriff says. “They have portfolios of subscriptions across different facets of their lives, and there are going to be moments when they take stock and they have to pause, or they have to cancel. But it definitely doesn’t mean it’s the end.”

Cancellation Is a Doorway, Not an Exit

Rachel Sheriff, Recurly

The most counterintuitive finding in Recurly’s data concerns the customers who have already gone. “A lot of new subscriber acquisition actually comes from previously subscribed customers,” Sheriff says.

“Around 25% of subscriptions from our data comes from a previously cancelled customer, and so cancellation can just be the beginning of a different relationship you’re going to have with those customers.”

Reading the run-up to a cancellation is where the work happens. Disengaged customers rarely announce themselves, which is why so many businesses miss the behavioural signals that precede a departure.

“Cancellations aren’t just a sudden thing. Usually a customer leaves mentally before they leave financially,” Sheriff says. “You’re going to start seeing signs. Maybe they’re not as engaged with your content, maybe they’re not purchasing as much.”

That same quiet is the silence of the unhappy customer who never complains and simply walks away.

The Overlooked Pause Button

When a customer does reach for the exit, Sheriff treats the cancellation moment as a test of whether a company values the person or only the revenue. Her preferred answer is the pause button, which she recommends as a way to let someone step back without forcing a permanent break. Ease of cancellation ranks among the top priorities for 71% of consumers assessing a subscription, and 38% would rather pause than cancel outright.

She points to ClassPass as the subscription she rates among the best customer experiences she uses, precisely because stopping it takes a single click. By her own count she has resubscribed around ten times over the years, usually around travel, returning each time because the service never made leaving a fight.

“Making it easy and seamless to cancel, I believe, leaves a lasting experience, and it’s one that shows transparency,” she says. “It shows trust that we’re going to make this easy for you.”

European rules already oblige companies to make leaving simple. Friction buys nothing but resentment, and resentment does not resubscribe.

How to Make a Subscription Worth Keeping

Staying relevant between billing dates takes constant, personalised contact. “You have to continuously reinforce the value that your subscription provides, and it can’t just be in transactional moments,” Sheriff says. “Remind the customer why they subscribed in the first place, and make sure anything you put in front of them feels personalised around their preferences.”

Asked to sum up a good subscription experience, onboarding and offboarding included, she lands on three words: personalised, value-rich and easy. Easy is the one she returns to, and it is the rally cry she gives her own team: “Make it easy to work with us while delivering value to every customer.”

The features in any paid tier will draw early attention. Whether subscribers stay depends on something harder to engineer. They have to feel that paying bought them more than they had when it was free.