The Discount offer type is commonly used in response to a customer indicating a subscription was too expensive for them.

Using contextual discounting in this way (only after a certain Reason has been chosen) is a recommended approach, even if discounting isn't often being used elsewhere in the customer lifecycle. Even a small discount can often incentivize a customer to stay subscribed, which is a big gain at a relatively small cost.

Discount offers can also be used as a Deflection (before a cancelation Reason is chosen), however, this will also make it easier for subscribers to claim a discount anytime—as they will see the discount anytime they click to cancel a subscription.

Churn Buster recommends starting with a 10% discount when starting out with Cancel Flows. This is considered the low end of a discounting range, and Churn Buster can use performance data to baseline the success of this offer before testing & measuring the impact of higher discount amounts.

What does success look like?

A small discount may retain anywhere from 1% to 4% of subscribers. Keep in mind, these customers already had one foot out the door when you made this offer, so it may just not be enough of an incentive. Over time you will find the right formula for success, and find enough of these small % gains to add up to a significant reduction of churn.

Note: Churn Buster Pro accounts may have enough cancellation volume to begin testing multiple Discount offers sooner, or even right away—please let your account manager know the maximum discount you would like to test, and Churn Buster will find the optimal discount amount over time.

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