How to tackle New Year’s subscription churn

As New Year's resolutions prompt many to sign up for apps with great intentions, businesses often face a wave of cancellations and refund requests shortly thereafter, particularly in January. This seasonal churn is challenging for app developers, especially those in health and fitness sectors, as users often abandon their resolutions quickly. To address this, businesses should focus on re-engaging users before they cancel by utilizing predictive modeling to identify churn risks, offering personalized messaging and offers, and creating compelling onboarding experiences. Additionally, businesses should streamline their cancellation and refund processes to reduce negative customer experiences and potential revenue loss. Transparent communication about refund policies and automation systems can help manage refund requests efficiently. Ultimately, a proactive approach in engaging customers and maintaining transparency can improve retention rates throughout the year, beyond the typical New Year influx.