4 takeaways from our discussion about churn with Amy Konary, Subscribed Institute

Last editedJun 2022 2 min read
Find out some of the key findings from our discussion with Zuora on customer churn
Recently, we caught up with Amy Konary, Chair of the Subscribed Institute to talk through our latest piece of joint research with Zuora and the Subscribed Institute looking into the issue of churn. Amy was joined by Duncan Barrigan, Chief Product and Growth Officer and Ella Thompsen, Senior Product Marketing Manager to discuss the findings.
The report, How they pay impacts how long they stay, looks into how much your payment method of choice impacts churn and what you can do about it.
Watch the full discussion here to find out more.
Here’s some of the key findings that came out of our discussion.
1. There’s an important difference between voluntary and involuntary churn
When talking about the impact that payment methods have on churn, Duncan highlighted that, it’s important to understand the difference between voluntary and involuntary churn.
“What we’ve seen over the years is that when you start thinking about the different types of churn, that’s what’s really key to understanding why payment method makes a difference.
Really, voluntary churn is where people have chosen to stop using a product very actively, whereas involuntary is different. I will give my own example here. I've lost access to Spotify a number of times because of my credit card expiring and missing the multiple emails they sent me about it when I do actually like music and want to continue listening.
Involuntary churn when it’s related to payment failure is one of the core drivers of churn and needs to be understood.”
Duncan Barrigan
Watch the discussion to find out more.
2. For a healthy subscription company, between 70-80% of revenue comes from existing customers
Reaching that fly wheel of success that many subscription companies strive for comes not just from acquiring new customers, but monetising and strengthening your existing customers. Data around how to increase retention can help businesses to do that.