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About Subscriptions. Part 2

Denis Galka
Denis Galka
CEO Sequoia
  • Published:
    21 August 2024
  • Updated:
    21 August 2024
About Subscriptions. Part 2

In the first part, I wrote about cases when people subscribe to a trial and immediately cancel it to avoid being charged later.

Thank to all for your comments on Facebook and LinkedIn. I really want to understand why this happens and how I, as a developer, can influence it.

Based on the comments, this mainly happens for the following reasons:

  • Users don’t see the value of the product from the very beginning, or the developers do not communicate it clearly enough.

  • Users want the application to prove its usefulness before they consider purchasing it.

  • Users are afraid they will stop using the application but continue to be charged.

  • Users treat the subscription system as a scam by default.

  • Users don’t consider paying if health insurance does not cover the application.

Our team has been thinking about how we can address these users. After all, they are still part of our audience.
Here’s our solution: if a user cancels their subscription, the next time they open Sequoia, a screen with the following text appears: "You've decided to cancel your subscription. Would you mind telling us why?" Three answer options are available: "I don't like the available plans," "The cost is too high," and "Other reasons." If a user selects the first or second option, a special offer with a 50% discount is displayed. If they choose the third option, Sequoia invites them to share their thoughts on what they don’t like about the app.

This way, we aim to retain some users and gather feedback to improve Sequoia. We plan to release this functionality in the next update.

How do you think this will affect user churn?


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