In today's competitive landscape, subscription companies face the dual challenge of acquiring new customers while retaining existing ones. Engaged subscribers  represent a 23% premium in share of wallet, profitability, revenue, and relationship growth over the average customer. 

The key to navigating this complex terrain lies in understanding and leveraging the subscriber engagement lifecycle. By focusing on continuous engagement, businesses can not only attract new subscribers but also minimize churn, thus driving sustainable growth.

What is the Engagement Lifecycle and Why is it Important?

The engagement lifecycle refers to a  holistic approach of interacting with subscribers. It involves understanding behaviors, needs, and preferences, to deliver personalized communications and experiences at every touchpoint. 

Recurly research revealed that 65% of consumers would reconsider canceling a subscription if they could customize their plan. Engaged subscribers are more likely to renew their subscriptions, make repeated purchases, and build a stronger connection with a brand. This translates directly into increased revenue and a higher customer lifetime value (LTV).

Turning Engagement into Revenue: Three Key Tactics 

Creating a strategy to engage subscribers requires a multi-faceted approach. Here are three tactics to help transform engagement into revenue:

1️⃣ Timely messaging and recommendations: Work with tailored prompts based on subscribers’ browsing history or past purchases to make your approach more relevant and engaging. Advanced algorithms and machine learning can help provide these personalized suggestions, making customers feel valued and understood. 

2️⃣ Cancel alternatives and pausing options: Offer alternatives at the point of cancellation to avoid voluntary churn. Intercept subscribers about to cancel to gather valuable feedback and include options to pause the subscription, switch to a lower-tier plan, or get additional perks for staying. In fact, 70% of subscribers will reconsider canceling if given a loyalty discount or incentive.

3️⃣ In-app payment notifications: Involuntary churn occurs when subscribers are unintentionally dropped due to payment issues, such as insufficient funds or outdated card information. To prevent this, you can implement in-app notifications about failed transactions or upcoming payments. Additionally, offering multiple payment options and an easy update process can enhance user experience and retention.

By combining strategic acquisition tactics with personalized recommendations, targeted upselling, and effective churn management, subscription companies can transform engagement into revenue. Subscription management and recurring billing platforms, such as Recurly, offer a range of tools to support these efforts, helping you build loyalty and drive sustainable growth.