Has Covid impacted your churn rate?

Question

We have seen an increase in churn and cancelations from new and old customers at Standard Resume. Our theory is that people are canceling subscriptions to save money, but I'm curious if anyone else has seen a similar trend.

Riley Tomasek · Accepted Answer

@alex_arevalo What do you mean by "price point psychology"? We have tried to keep pricing as simple as possible to reduce decision fatigue at checkout.

Alex Arevalo · Answer

@rileytomasek #3, https://neilpatel.com/blog/5-psychological-studies/

Most famously used by the WSJ

Alex Arevalo · Answer

@rileytomasek I guess the best thing to do is wait and see how that works. I would keep 3 different pricing ranges to give clients price point psychology. Also if you are increasing emails to users at this time to try keeping them, I would slow down on those too.

Normally increased comms during tough times reminds users to cancel subscriptions, a strange paradox.

Alex Arevalo · Answer

@rileytomasek I run an app called Calibre Companion, an e-book library tool that has a subscription model and we have not seen an increase in churn. I would also think that your business might thrive with the level of unemployment happening in today's world.

I would recommend providing a special pricing offer for covid times that locks users in to 3 months engagements or just introducing a middle tier pricing option that is 3 months instead of yearly or monthly.

Riley Tomasek · Answer

@alex_arevalo thanks for the response.

We actually just added the yearly plan to replace our quarterly plan. We thought that 3 months might not be long enough for most people right now, so we introduced a deeply discounted yearly plan. That was only a few days ago though, so it's still to early to tell how it's doing.

We also expected to see an increase in customers considering the current unemployment levels, but our traffic hasn't been impacted. I think some people may not have started looking for work yet because so few companies are hiring right now.

Has Covid impacted your churn rate?

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