Do discounts make money? We analyzed 3M subscriptions across billions of $$(churnkey.co)
churnkey.co
Do discounts make money? We analyzed 3M subscriptions across billions of $$
https://churnkey.co/blog/discounting-at-cancellation/
https://churnkey.co/blog/discounting-at-cancellation/
We found that:
Customers who accept a discount stay 5.1 months longer on average.
11% remain subscribers over a year later, even after the discount expires
For the customers in the 90th percentile, they stayed for an average of 13.4 months when offered a discount at point of cancellation
Discounts were accepted 8.7% of the times
People accepted discounts within 45 seconds when offered
Data biases
Churnkey has anti-abuse built in so people can't misuse discounts
We only offer discounts at point of cancellation to retain customers.
Open to interpretations on the data.