Blog articles by Makella Bergsmith

Articles by

Makella Bergsmith

Makella Bergsmith is a Senior Analyst, based in Atlanta, with 4 years of experience in the insights industry. She holds a Master's Degree in Marketing Research from the University of Georgia. Considering herself to be a bit of a generalist, she has experience in various industries including tech, CPG, financial services, and consumer durables, and with a multitude of methodologies, with choice-based conjoint being her favorite.

Why enabling a “pause” can drive customer retention for digital subscription brands

By Brady Silva and Makella Bergsmith on December 12, 2022

TL;DR

32% of consumers have cancelled a digital entertainment or fitness subscription only to rejoin later
Nearly 1 in 10 survey respondents cancel because they could not pause
Providing pausing options can continue the relationship with the consumer and makes it more likely for consumers to rejoin, or reactivate

In a recent survey of digital entertainment and fitness service subscribers, 72% of respondents considered these subscriptions to be discretionary spending. In an era of high inflation and fierce competition in the digital subscription space, it’s important to explore what’s driving consumer behavior related to churn:

Why are consumers cancelling subscriptions to digital entertainment and fitness services?
What do consumers expect from their experience with digital subscription services?
What does it take for consumers to rejoin after cancelling their digital subscriptions?

Knowing these insights is key to helping your subscription marketing strategy and to decreasing customer churn.