28% of Loyal Subscribers Would Cancel Due to Excessive Promotional Materials

With the subscription market becoming increasingly crowded, merchants need to be aware of the factors that may lead to the cancellation of loyal subscribers. PYMNTS Intelligence finds that, when it comes to promotional materials, a little goes a long way.

By the Numbers

The PYMNTS Intelligence report “Decision Guide: How Retail Subscription Merchants Can Win and Retain High LTV Customers,” created in collaboration with sticky.io, draws from a survey of more than 2,000 U.S. consumers to understand the relationship between loyal customers and merchant revenues.

The results revealed that a significant 28% of loyalists — the 30% of subscribers that account for 79% of merchant revenues — stated that they would cancel their subscription if they received excessive promotional materials.

While promotions are essential for attracting new customers, bombarding loyal subscribers with constant offers can lead to frustration and ultimately result in cancellations. Retail subscription merchants must strike a balance between enticing new customers and maintaining the loyalty of existing ones.

The Data in Context

As sticky.io CEO Brian Bogosian noted in an interview with PYMNTS’ Karen Webster earlier this year, too many emails add up to pestering a subscriber.

“Say it in a compelling, concise way for me to understand what is the message you’re conveying so that I can understand it and appreciate it and … it took me 15 seconds,” he said.

Retaining existing loyal customers is especially key now, as economic challenges make it more difficult for merchants to acquire new subscribers.

“Acquisition is harder for sure,” Doug Taylor, co-founder of Taylor Chip Cookies, told PYMNTS in a conversation earlier this year about the brand’s “Cookie Club” subscription. “I’ve talked with a lot of people in the industry, including some really, really big businesses and founders, and everyone says they’re feeling a little bit of a pullback. People are being very cautious with what extra they spend.”