5 reasons your subscription business has high churn (and how to fix it)

18th March 2025by Charlie Semmence

Nothing kills a subscription business faster than high churn. If you’re constantly losing customers, you're stuck in an endless cycle of acquisition over retention - wasting budget and slowing down growth.

But fear not! Subscriber churn is fixable (if you know where to look). Here are 5 reasons why your customers are leaving, and actionable strategies to stop them and decrease churn in your subscription business.

1. Poor onboarding: You’re losing customers in month 1

The problem: Your customers don’t see value fast, so they cancel.

Your first 30 days are critical. This is when new subscribers decide if they’ll stick around or churn. A weak onboarding experience creates confusion about what they’ve signed up for, leads to a lack of engagement with the product, and increases the likelihood of early cancellations before they form a habit.

How to fix it:

✅ Personalised welcome flows: Send a post-purchase email/SMS sequence that explains what to expect and how to get the most from their subscription
✅ Quick-start guides: Whether it’s a video walkthrough, a top tips email, or an unboxing experience, make sure subscribers know how to use your product
✅ Early engagement perks: Offer a subscriber-only reward after their second or third renewal to reinforce the habit

2. Lack of flexibility: Customers feel trapped

The problem: Your customers can’t pause, skip or adjust their subscription, so they cancel entirely.

When customers don’t have control over their subscription, they might leave unnecessarily, even if they would have been happy to just take a temporary pause, or shift their delivery date. This lack of flexibility is frustrating, and subscribers might start to see your subscription service as restrictive, rather than convenient.

How to fix it:

✅ Offer pause and skip options: Let subscribers take a break instead of quitting completely
✅ Provide flexible delivery frequencies: Not everyone needs a refill every month. Offer bi-weekly, monthly or every two months
✅ Send proactive renewal reminders: Give subscribers the chance to customise their next order before it ships

3. Payment failures: The silent churn you’re ignoring

The problem: Your subscribers’ payment method fails and never gets recovered, so you lose them completely.

7% of all recurring charges fail on the first attempt. Payment failures can happen for a whole range of reasons. Sometimes it’s an expired card, sometimes there’s insufficient funds in the account, or it might be some other technical issue. 

They’re a huge issue for subscription businesses because when a recurring payment fails, you’re not just losing revenue from the one shipment. If you don’t rectify the issue, you’re losing all the revenue for subsequent subscription orders too.

But don’t panic. There are things you can do to avoid this.

How to fix it:

✅ Automate retry sequences: Retry failed payments multiple times before giving up
✅ Pre-failure reminders: Send an SMS or email before the card expires to prompt an update
✅ Use Recharge’s Failed Payment Recovery to automate this whole process

4. Subscription fatigue: Your customers get bored

The problem: Your customers lose interest, question the value of your subscription, and churn. 

A lot of subscription brands focus heavily on acquisition, offering a great first-time discount, free trials or welcome bundles. But they fail to keep delivering that value after the initial sign-up.

If customers feel like they’re just receiving the same thing every month without any added benefit, they might start to question why they’re subscribed at all. Subscription fatigue is real.

How to fix it:

✅ Introduce exclusive content or perks: Give subscribers early access, limited-edition products or loyalty discounts
✅ Personalise the experience: Offer customisable options based on past purchases or preferences
✅ Keep it fresh: Rotate product selections or offer bonus surprises

5. No win-back strategy: You let customers go too easily

The problem: When your subscribers leave, they leave for good. You’re not doing anything to win them back.

Not every cancellation is final. Many customers don’t actually want to cancel their subscription - they just need a better reason to stay.

If you’re not actively trying to reduce churn rate with win-back strategies, you’re leaving revenue on the table.

How to fix it:

✅ Ask why they’re leaving: Use a cancellation flow to ask for a reason before they quit (and offer a targeted retention deal)
✅ Send re-engagement offers: Offer a discounted renewal, free month or exclusive bundle
✅ Follow up with past subscribers: Win back lost customers with personalised campaigns

Fix churn to unlock growth

Subscriber churn isn’t inevitable. It’s a problem that’s fixable if you dedicate time to creating a strategy. 

The most successful subscription businesses aren’t just focussed on signing up new customers. They’re keeping them for longer by focusing on flexible subscription models, ongoing engagement & retention incentives, and win-back strategies for lost subscribers.

With the suggestions above, you can do the same.

Need some help with us? Speak to our team about our subscription support services.