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New Research Reveals Customers’ Growing Frustration with Payment and Cancellation Issues

By Lauren Hinton · 30 October 2024

New-Research-Reveals-Customers’-Growing-Frustration-with-Payment-and-Cancellation-Issues
The FTC's new "click-to-cancel" rule, designed to simplify the process of ending subscriptions, has created a stir, putting additional pressure on subscription businesses to reassess their strategies. Payment processing platform Solidgate surveyed 1,000 adults and found that 1 in 4 had upsetting unexpected charges with their subscriptions and 80% wouldn't recommend a subscription service to a friend if they had trouble canceling it, while 1 in 3 consumers cancelled a subscription service in the last year due to billing frustrations. We have lots more original data on how customers perceive subscriptions and how businesses are able to keep them satisfied. For example, our survey reveals that:
  • A staggering 70% would abandon a service entirely if they experienced problems with payment processing. 
  • 60% feel businesses don’t provide enough information when transactions are declined. 
  • More than 50% believe they aren't given enough time to resolve payment issues before cancellation. 
  • A massive 82% of consumers worry about their card details being leaked when linked to subscription services.
  • 5 in 6 feel like businesses should offer more flexible billing dates to avoid declined payments
  • You can find the full research here.
Yuri Alekseev, CEO and co-founder at Solidgate, explains why fine-tuning payment processes can help businesses reduce churn, build customer trust, and enhance brand reputation in the subscription economy: "Our research reveals the delicate balance between challenges and opportunities in the subscription economy,” — said Yuri Alekseev, CEO and co-founder at Solidgate. "While subscriptions are a convenient model, even the slightest payment issues can quickly erode customers’ trust and loyalty. What’s more, businesses might not even know they are making these mistakes. “Businesses looking for a competitive advantage need to fine-tune their approach. That includes offering flexible billing options; being sure you communicate clearly and quickly about payment issues; and putting in place robust security measures. This will not only ensure that customers have a seamless billing experience but will also maximize the chances that they refer your business to their friends and family.” “In today’s subscription economy, the payment process is no longer just a backend function – it is vital to driving revenues. Businesses that deliver smooth, secure, and flexible payment experiences can secure their advantage, reducing churn and boosting their brand reputation."

Companies in this story: Solidgate

People in this story: Yuri Alekseev

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