Today we're very excited to announce the release of a project we've been working on for the last few months...Churnly!
The Story Behind Churnly
I'll start with a little background on our own business, how a problem we needed to solve led to the creation of Churnly, and finally, what Churnly can do for your business.
As many of our readers know, a little over a year ago we moved to an automated annual license renewal system. Many of our customers had been urging us to make this change for quite some time, particularly our web development and agency customers who have no interest in manually renewing dozens of plugins every year that they've installed on hundreds of client sites.
It obviously had a positive financial impact on our business as well, allowing us to much more accurately predict future cash flows and better plan for ongoing product development and staffing expenses.
However, after four months or so of having this new automated renewal process in place, we didn't have contingency plans for one major issue that came up. It's something we knew very little about before, but something we've researched extensively since and understand very well now.
So What is This Big Issue?
Two words...involuntary churn.
Involuntary churn is an issue for any website which charges a recurring membership fee or subscription. It's inevitable and cannot be prevented. But we've developed Churnly to help you minimize the impact of involuntary churn for your business.
Voluntary churn describes customers who intentionally cancel their membership or subscription because they can no longer afford it, they no longer need it, or they aren't satisfied with the offering.
However, involuntary churn is the term used to describe customers who are satisfied with your product, service, course, or content, but who quietly slip away over time simply because their payment method expires during their membership or subscription period.
And This Can Have a Major Impact on Your Business!
On average, each month roughly 2% of a site's active memberships or subscriptions will fail to be processed due to an expired payment method. And once a customer's payments begin to fail, their membership or subscription is cancelled.
This involuntary cancellation means you essentially have to acquire a new customer to replace that lost revenue. And in some niches, the cost of acquiring a new customer can reach or exceed $100.
Considering that the cost of keeping a customer is zero, going out and acquiring new customers to replace involuntary churn coupled with lost revenue from involuntarily cancelled memberships or subscriptions can drastically reduce a company's bottom line.
Let's take a look at a simple example. In this example, we'll take a look at how an average level of involuntary churn affects a membership site which starts the year with 500 members who are each paying $50 per month.
Churnly...A Completely Automated Solution to Reduce Involuntary Customer Churn
As I mentioned above, Churnly was initially developed as a solution for our own business (in fact, all of our plugins were born this way). As such, we needed it to offer a completely automated process for reducing involuntary churn.
Not only that, but we wanted it to be simple for our customers. So we eliminated as many steps as possible in the payment method update process to ensure a maximum number of continued subscriptions. Customers don't even have to log in to your site to update their credit card!
Churnly Integrates with Leading Shopping Cart Plugins and Payment Gateways
Churnly currently works with these leading WordPress shopping cart plugins and recurring payment gateways:
And a Very Special Offer for Early Adopters!
Again, we're thrilled for Churnly's release as we think it can help many, many of our customers earn more money without making any other changes.
To help as many people as we can in getting this solution implemented to reduce involuntary customer churn, we're offering a huge 30% discount for 72 hours only!
This is a limited-time launch offer that we won't be offering again, so this will be the absolute lowest price you'll be able to grab Churnly at now or in the future.
Please don't miss out! This offer will only be good through 11:59PM EST on Friday, September 1st (UTC-5:00).
If you run a membership or subscription site and collect recurring payments from your customers, you have no excuse for not grabbing a Churnly license at this price and putting a stop to involuntary churn!
Simply click the button below to visit our Churnly page and you'll automatically receive 30% off on any license level when you reach the "Checkout" page!