They can use pricing to influence subscribers to shift towards annual subscription.
A recent Piano study found that the number of active subscribers increased by more than half from the end of 2019 to 2020. Moving forward in 2021, publishers must capitalise on this growth and focus on maximising subscriber retention.
Studies show that annual subscribers are more likely to be retained than monthly subscribers who have 12 chances to cancel their subscriptions. Publishers can introduce discount offers to encourage more users to sign up for annual subscriptions instead of monthly. Interestingly, that lower price will ultimately pay off in higher long-term revenue with lower subscriber churn.
Instead of offering free- or paid-trial subscriptions, publishers should provide non-trial subscription options to reduce early churn and improve retention. To further reduce subscriber churn, publishers can adopt an effective onboarding program.
[5 minute read]