Passive churn is a silent killer. It’s difficult
Posted: Mon Feb 17, 2025 3:48 am
Since 2018, as a Recharge tech partner, Churn Buster has helped fast-growing merchants retain hundreds of millions of dollars in revenue and millions of subscribers. With this premier partnership, Recharge merchants will be able to tap into even greater benefits of optimized retention, increased LTV, and improved business health as they scale.
“Churn Buster has proven to be a powerful churn prevention tool for many of the merchants who use Recharge over the years.This new elevated tech partnership is part of an already valuable integration that we will continue to improve upon for our merchants as they continue to grow.”
—Matt Houlemard, Technology Partnerships Manager bahamas phone number data at Recharge
What is passive churn?
One of the most valuable (and lowest effort) ways for subscription merchants to improve retention and increase their overall customer LTV is to address passive churn.
to see, often misunderstood, and too often neglected. However, the fact remains that many merchants are losing money involuntarily due to failed credit card payments. On average, 10% of renewal payments fail, which can account for up to 50% of overall churn. With Churn Buster’s tried-and-true approach to dunning, industry leaders are able to recover over 90% of these subscribers.
Plugging in to an advanced dunning process is hands down the easiest, most impactful way to improve retention today. However, failed payment churn does not exist in a bubble. The difference between merchants recovering 90% of payment failures vs. those recovering 20% (using the exact same dunning process) lies squarely in the active churn column.
There is a direct correlation between active and passive churn rates. A customer’s desire to cancel is tightly linked to their desire to provide an updated credit card after a renewal payment fails. Active and passive churn rise and fall together.
It’s why it’s important to look holistically at the many factors that impact your subscribers’ desires to stick around.
“Churn Buster has proven to be a powerful churn prevention tool for many of the merchants who use Recharge over the years.This new elevated tech partnership is part of an already valuable integration that we will continue to improve upon for our merchants as they continue to grow.”
—Matt Houlemard, Technology Partnerships Manager bahamas phone number data at Recharge
What is passive churn?
One of the most valuable (and lowest effort) ways for subscription merchants to improve retention and increase their overall customer LTV is to address passive churn.
to see, often misunderstood, and too often neglected. However, the fact remains that many merchants are losing money involuntarily due to failed credit card payments. On average, 10% of renewal payments fail, which can account for up to 50% of overall churn. With Churn Buster’s tried-and-true approach to dunning, industry leaders are able to recover over 90% of these subscribers.
Plugging in to an advanced dunning process is hands down the easiest, most impactful way to improve retention today. However, failed payment churn does not exist in a bubble. The difference between merchants recovering 90% of payment failures vs. those recovering 20% (using the exact same dunning process) lies squarely in the active churn column.
There is a direct correlation between active and passive churn rates. A customer’s desire to cancel is tightly linked to their desire to provide an updated credit card after a renewal payment fails. Active and passive churn rise and fall together.
It’s why it’s important to look holistically at the many factors that impact your subscribers’ desires to stick around.