San Francisco-based subscriptions management platform, Recurly, has released its 2022 data, providing a useful benchmark and data averages for publishers looking to retain subscribers and avoid churn.
Recurly, the U.S.-based subscription management and billing platform that processes in excess of £1B in payments each month for leading brands including TIME, Los Angeles Times, Tribune Publishing, Twitch, and Sprout Social, has released its aggregate 2022 data.
Key at a glance findings:
- The average overall churn rate for Recurly customers was 6.9%
- Voluntary churn comes in at 4.7%
- Involuntary churn at 2.2%
- Publishers achieved 12.9% more revenue using specialized recovery techniques
- Half of a subscriber’s total customer lifetime happens after the point of recovery
Recurly also disclosed that in 2022 it saved 76.4% of “at-risk subscribers” from involuntary churn which typically tends to happen when a customer’s payment method changes or when their card expires, equating to 14.8M saved subscriptions.
The subscriptions platform also stressed the importance of “subscriber recovery” stating that roughly half of a subscriber’s total customer lifetime happens after the point of recovery. It added that across its client base, recovery events were instrumental in building long-term subscriber relationships.
The most successful subscription brands understand that expanding one’s customer base is only one core facet of growth. But fostering long-term customer relationships—and nurturing those relationships—is just as important, and arguably, more challenging to do.Dan Burkhart, CEO and co-founder, Recurly
He added, “Since July of last year, we released several new features to further improve the subscriber experience, including invoice customizations, and proactive and reactive recovery features that reduce subscriber churn.”