E370:🎙️HOW TO PREVENT YOUR ECOMMERCE SUBSCRIPTION CUSTOMERS FROM CHURNING | PROSPERSTACK

How ProsperStack Helps eCommerce Merchants Prevent Churn and Boost Revenue

Subscription models are a goldmine for eCommerce brands. They promise predictable revenue, streamlined supply chains and better customer lifetime value (LTV). But they come with a catch: cancellations. What happens when your customers decide to cancel their subscriptions? That’s where ProsperStack steps in.

Tony Sternberg, Co-Founder and CEO of ProsperStack, shares insights on how the platform is transforming retention for subscription-based businesses. Let’s break down the key takeaways from our conversation.

Understanding ProsperStack’s Role in Subscription Retention

At its core, ProsperStack is a tool that acts as a safety net for merchants when customers initiate cancellations. It integrates seamlessly with platforms like Bold, Recharge, Ordergroove, Recurly and more, intercepting the cancellation process.

Instead of losing a customer outright, ProsperStack provides options like:

* Skipping a delivery

* Offering discounts

* Pausing instead of canceling

It’s not just a basic retention tool—it empowers brands to optimize and personalize these retention strategies. Growth teams for eCommerce merchants can use ProsperStack without heavy developer involvement, testing new ideas and learning what works best.

Why Subscription Retention Matters

Subscriptions aren’t just about recurring revenue; they're about relationships. When a customer ditches a subscription, brands lose more than income—they lose trust and future potential.

Tony points out that understanding ‘why’ customers cancel is just as important. Is it price? A surplus of product? A lack of perceived value? Knowing the reason helps brands improve.

How ProsperStack Creates a Smooth Cancellation Experience

We’ve all been frustrated trying to cancel a service. Tony recognized the pain points from personal experience, whether it was dealing with clunky workflows or unhelpful customer portals. That’s one of the reasons ProsperStack exists—not just to help businesses but also to respect consumers.

By presenting relevant and timely offers during cancellation, brands show they’re willing to adapt to customers’ needs. For example, when a customer states they’ve got too much product, why not offer to skip deliveries instead of canceling?

More importantly, the platform makes it easy for businesses to act based on feedback. No endless back-and-forth with developers. No patchwork solutions. Once it’s set up, companies can tweak, test and optimize offers seamlessly.

Insights from the Data

ProsperStack doesn’t just save customers—it collects valuable feedback. Its analytics tools give merchants insight into why customers cancel, how they respond to offers, and what their sentiment toward the brand is.

For example, by processing open-ended responses and running sentiment analysis, ProsperStack can help identify whether customers see your brand in a positive or negative light. Combine that with segmentation by product, lifetime value or subscription history and you get data that’s actionable—not just interesting.

Retention Rates That Speak for Themselves

The platform’s results vary based on industry and audience, but Tony’s team often sees retention rates between 20% and 30%. For some businesses, even retaining 10% can make a huge financial impact.

The most common reason for cancellations? Price. But it’s not just about cost—it’s about how price fits into the customer’s current circumstances.

By addressing issues directly and showing flexibility, brands demonstrate they care. And that goodwill translates into long-term retention.

Tackling the Fear of “Gaming the System”

One concern Tony hears often is whether customers will exploit retention offers. For instance, will customers cancel repeatedly just to get discounts?

ProsperStack has built-in safeguards:

* Customers who accept a retention offer won’t receive another one right away.

* Offers can be randomized so not everyone gets one.

* Pathway variations ensure the experience isn’t predictable.

Also, Tony emphasizes that focusing too much on stopping ‘gamers’ could cause businesses to lose sight of the bigger picture: offering value and building loyalty.

Even when gaming happens, it might point to a bigger issue—pricing, product value, or customer experience. If so, it’s a chance to re-evaluate and improve.

A Low-Code Retention Solution

On the technical side, the implementation process is simple. ProsperStack integrates directly with customer portals and subscription platforms via APIs. A simple JavaScript snippet triggers the cancellation flow, bringing ProsperStack’s UI into action.

The tool also syncs with data platforms like HubSpot, Salesforce, and Segment, ensuring that merchants have access to all the information they need to personalize offers and guide the journey.

Tony recommends starting with a basic setup to gather initial results, then layering in segmentation or advanced testing.

What’s Next for ProsperStack?

Looking ahead, Tony sees opportunities for ProsperStack to integrate AI for additional automation and optimization, such as:

* Generating contextual copy for retention offers.

* Automating A/B testing for discounts or subscription changes.

* Optimizing for both customer retention rates and preserved revenue.

By automating parts of the workflow and continually learning from customer behavior, ProsperStack aims to make retention automatic and efficient.

The Sweet Spot for Subscription Businesses

ProsperStack thrives with high-volume subscription businesses. These companies can’t afford to dedicate human resources to every cancellation, so automation is key.

Interestingly, while its focus has largely been on B2C and DTC brands, Tony sees room for growth in B2B subscriptions. The basic principles of retention apply universally, though the execution might look different in industries with a higher average order value (AOV) or different customer touchpoints.

Conclusion

ProsperStack isn’t a magic fix for every retention issue, but it’s a critical piece of the puzzle. It bridges the gap between "you’re about to lose a customer" and "here’s how we’ll win them back."

By offering a smooth, automated platform that integrates effortlessly into the subscription stack, ProsperStack gives brands the tools to battle churn head-on. The result? Happier customers, higher LTVs, and stronger businesses.

If you’re running a subscription-based eCommerce business, it may be time to rethink how you handle cancellations. What if there was a way to turn goodbye into a maybe next time?

To learn more, check out the related THE ECOMMERCE EDGE Podcast episode below: