All members eventually churn. But what if you could address a member’s change in perceived value and incentivize them to continue their membership for months (or even years) longer than they would have otherwise?

This is what retention discounts come in - and in the video and article below, I’ll explain exactly how to leverage them in your own membership to reduce churn.

https://player.vimeo.com/video/870665036?h=11ec0b5aca

<aside> <img src="/icons/bookmark_gray.svg" alt="/icons/bookmark_gray.svg" width="40px" /> The Big Picture: All members perceive value differently inside your membership. Using Retention Discounts will allow you to retain more revenue over time through targeted discounting that prevents churn.

The Statistics:

• 70% of all membership churn occurs due to changes in perceived value and price sensitivity.
• You can retain up to 30% more revenue by simply leveraging Memberful’s Retention Discount feature to reduce your churn

🚀 The Action Plan:

Use the suggested settings below to create targeted retention discounts that will reduce your revenue churn and increase member lifetime value

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📘 Table of Contents

What’s a Retention Discount?

A retention discount is an exclusive offer that you provide a member who has taken deliberate action to cancel their membership.

Retention discounts are designed to offer a price incentive that’s attractive enough to persuade a member to continue their membership with you. When used correctly, retention discounts are wildly effective because they give you a direct way to recover revenue that would have otherwise been lost.

Memberful’s built-in Retention Discount feature allows you to this in a fully automated and targeted way.

The Philosophy of Retention Discounts

I want you to think of retention discounts as a price discovery mechanism. Most members experience a change in perceived value of your product over time which ultimately leads them to cancel.

But when members receive a price that’s in harmony with their level of perceived value, they go on to retain longer and are worth more over time.

<aside> ✅ *All members reach a point where the value they perceive no longer aligns with the price they’re paying.

This is entirely natural and should be expected.*

Retention Discounts simply provide you a way to successfully deal with this scenario when it arrives on a member-by-member basis.

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Retention Discounts extend the lifecycle of a paying member, even though the price they continue to pay will be lower than the price they were paying prior to the offer.

As the membership operator, you capture the incremental revenue generated from this extended lifecycle.