Athletic Startup Blog

$2442 per Hour? How Fixing Your Subscription Churn Could Bring Massive Revenue Change To Your Business.

Jun 08, 2023

Hey Squad.

I made some important changes today that should have a big impact.


We've known for a while that we need a system for catching churned (failed and canceled subscriptions) but haven't implemented much.
What we did have was an automation that sent them emails titled
"Psssttt." when a payment failed (expired or canceled credit cards)
and "How Can We Help" when a subscription was cancelled (by the subscriber OR because their payment failed for too long and then was officially cancelled by STRIPE)


After listening to Amy Porterfield's Online Marketing Podcast Last Night, I realized how very urgent this was. She boasted an EIGHTY PERCENT!!!! recovery from fails and cancels.
People dont necessarily WANT to cancel, sometimes their cards just run out and they don't realized they are losing access.  Then, when they actually DO cancel we haven't had any "second chance' opportunities with them. 
Think about a waiter when you say you are finished with your meal. 
He says "are you sure? No dessert?" 
you say "I'm stuffed"
he says "not even a cappuccino or one scoop of our amazing ice cream drizzled in caramel?"
you say "ok ok. a cappuccino does sound nice"
6 dollars plus tax plus tip... 
2 sentences and he's increased your spend by $10.... and your enjoyment :)
We haven't done that til today.


I did this through automations and email sequences. I saved hours of time by asking ChatGPT to come up with subject titles and email bodies. Then I edited just the little bit I needed to.
When a payment fails... they are subscribed to a 5 part email sequence over 7 days telling them they need to change their payment info and giving them step by step instructions with links... I was sure to inform them that if they don't do that, they'll really miss out on all the benefits.
When a payment is successful (in other words, they fixed it and a payment went through) they are unsubscribed from that email sequence so they aren't bothered anymore and it can recycle them if it happens again..
When a payment is CANCELLED they are subscribed to a 4 part email sequence that offers them a gift or a coupon if they book a call with us. They are sent to a form that gives info so I can call them. On that call, I'll be able to understand what was missing and why they canceled and I will try to make them an offer so that they get back on the subscription. If they don't, Im still sending them on their way with a really nice gift, (a shirt, a coupon, or a couple free months). No matter what, they will be sure to recommend us to a friend after that convo.


over the last 3 months we had 137 subscriptions churned on kajabi.
The automations we had in place sent an email to our support inbox which created 137 extra emails per quarter, and we really weren't doing anything with them because we've been busy trying to sell to new people instead of recover people already onboard... That's bad because statistically its way easier to sell to current customers or just recover them as opposed to trying to get new ones.
This will eliminate all emails except for the ones who want to talk to use or update their account which is a big bonus and reduces the white noise.
at $39 a month that's $5343 per quarter we've been losing to churn....
if we recover 50% of those, it will be an increase of $2671 per quarter or $10,686 per year and growing since we are growing....
If we hit Amy Porterfield's 80% recovery stats..... This move will have made $4274 per quarter or $17,097 per year.... and growing since we are growing....
I'm setting an event on my calendar for 30 days from today and Im going to measure our churn rate and numbers for the next 30 days and compare it to the previous months.... Fingers crossed!


Find places, podcasts, books, discussions, mentors to learn from. 
What are they implementing that we've wanted to or that we didn't even know about?
What can make MONSTER changes..
This took me 7 hours total. One to listen to the podcast and 6 to fix on our website...
If we hit 80% recovery this MIGHT value my hours today at $2442+ per hour and then add on the exponential growth of coming years.
.....or it could be a big flop... but if it flops, its another new thing we've tried and therefore learned, so we are one step closer to being Great.

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