NEWS
Failed payments could cost subscription companies more than US $ 129B in 2025
The global subscription industry continues to grow with a projected market value of US $ 1.5 trillion by 2025 , but one challenge continues to plague many leading subscription companies – subscriber churn . The complexities of recurring billing and payments can leave some companies with a proverbial ‘ leaky bucket ,’ leaving a projected estimate of US $ 129 billion on the table from involuntary churn alone in 2025 .
Involuntary churn is when a subscription payment stops due to a payment error – an expired or reported lost card , gateway failure or one of 2,000 additional reasons . It is one of the top but manageable challenges facing the subscription industry today . For even the largest subscription businesses , this can result in significant lost recurring revenue , lost subscribers and poor brand experience .
To understand the potential economic impact of involuntary churn , Recurly , a data-driven churn management solution provider , analysed billions of data points to identify its impact on the industry overall . The analysis shows that inadequate churn management can collectively lead to an estimated US $ 129 billion loss when looking at this US $ 1.5 trillion industry . This analysis was derived from the average 8.6 % revenue lift that subscription businesses experience when implementing Recurly ’ s data-driven churn management solutions .
“ Subscriber churn is the enemy of every brand we speak to . Many businesses have basic , manual solutions in place to manage churn , specifically involuntary , but they don ’ t realise how much they can move the needle with a better strategy and automated tools ,” said Jonas Flodh , CPO at Recurly .
Henry Dannell , a London-based specialist mortgage advisory firm , has signed up 26 city firms to its innovative Corporate Mortgage Staff Service offering . The company ’ s specialist service empowers organisations to make financial education and mortgage services more accessible to their employees . The suite of services includes virtual and in-person mortgage consultations , a personalised portal to manage applications , affordability calculators , around-the-clock rate monitoring , and education programmes designed to give employees a complete picture of their financial situation and borrowing options . Since its launch in April 2023 , Henry Dannell ’ s offering has already seen rapid uptake with leading city firms in the legal and finance sector signing up . As part of its rapid growth strategy in the employee benefits space , Henry Dannell will work with human resources ( HR ) leaders to develop bespoke packages that reflect the needs of their employees .
“ In today ’ s economic climate , providing robust employee benefits through financial education is crucial for workplace wellbeing and
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Henry Dannell transforms corporate benefits landscape as 26 city firms sign up to its Mortgage Staff Service offering
giving employees the opportunity to make informed choices ,” said Kem Kemal , Henry Dannell Co-founder and CEO . “ Our corporate staff mortgage service has been tailored to enable firms to provide financial education and high-quality mortgage advisory services to every single employee . Many businesses offer sizeable benefits packages , including pensions and financial advice , but getting access to independent mortgage advice and services remains a very rare offering . We ’ re here to change this , setting a new industry standard .”
This service is designed to make mortgage-related services more accessible to employees , allowing them to dedicate their focus to their roles within their respective firms without the burden of worrying about the often-onerous mortgage process . Henry Dannell manages the entire mortgage process from start to finish .
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