Recurly Reveals That It Recovered Nearly $1 Billion in Subscription Revenue for Customers Over Course of 2022
Platform’s churn management features minimized attrition—saving 14.8M subscriptions—and potentially boosting recurring revenues as much as 12.9%
Recurly, Inc., a leading direct-to-consumer subscription management and recurring billing platform, announced that it successfully helped recover nearly $1 billion in revenue for its customers globally in 2022. This milestone represents a 21.9% year-over-year growth from 2021, during which Recurly recovered close to $800 million for customers, thanks to the platform’s churn management technology. With over 50 million active monthly subscribers, Recurly processes in excess of $1B in payments each month for leading brands like Sling, Twitch, BarkBox, FabFitFun, Paramount, Lucid and Sprout Social, further powering its machine-learning engine to identify opportunities to capture revenue and customers which would otherwise be lost.
“The most successful subscription brands understand that expanding one’s customer base is only one core facet of growth. But fostering long-term customer relationships—and nurturing those relationships—is just as important, and arguably, more challenging to do,” said Dan Burkhart, CEO and co-founder, Recurly. “Combining enhanced machine learning with a decade-plus of experience in subscription payments and billing, we’ve given our customers the tools they need to effectively reduce involuntary churn and save subscriptions, saving dollars and subscribers at the same time.”
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In 2022, the average overall churn rate for Recurly customers was 6.9%, with voluntary churn at 4.7% and involuntary churn at 2.2%. Recurly’s churn management functionality specifically helps prevent the latter, which tends to happen when a customer’s payment method changes or when their card expires. In 2022, Recurly saved 76.4% of at-risk subscribers from involuntary churn. Given that the data shows that roughly half of a subscribers’ total customer lifetime happens after the point of recovery, recovery events are instrumental toward building long-term subscriber relationships. All-in-all, 14.8M subscriptions were saved.
“Since July of last year, we released several new features to further improve the subscriber experience, including invoice customizations, and proactive and reactive recovery features that reduce subscriber churn,” Burkhart said. “We’ve also enhanced data visualization tools to deliver comprehensive insights on the health of customers’ subscriptions, helping our customers explore, analyze, and share real-time business analytics.”
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Subscription growth hinges on great user experience and by proactively optimizing transactions to safeguard payment. Recurly not only helps to ensure that consumers don’t run into issues maintaining their subscriptions, but also helps its customers recognize as much as 12.9% more revenue, the average of the typical revenue increase once using the recovered revenue techniques of Recurly.
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