Tuesday, 02 May 2017 13:39

GAD Signs Two New Subscription Product Marketers

Subscription marketing companies continue to see unprecedented growth.  Subscription business sales have grown substantially and faster than two key public benchmarks —S&P 500 sales and U.S. retail sales. The Subscription Economy Index (SEI) has grown nine times faster than S&P 500 sales over the past five years (15.1% versus 1.7%) and four times faster than US retail sales (15.1% versus 3.6%).

GAD has signed with two new product subscription marketers to engage in outbound calling for cancellation reactivation.  While the cost of re-activating a subscriber is almost identical to generating a new subscriber, a reactivated subscriber has a longer life expectancy on average; generating more lifetime value.  Email provides a least cost means of reactivating a subscriber, the conversion was low; resulting in many subscribers left unengaged. 

Through multiple levels of testing, optimum call timing was identified increasing the response rates by 20% of the baseline.

A reinvestment into reactivation of unsubscribed members through outbound telemarketing yielded a ROI of 2 – 3 times higher than replacing attrition with newly acquired customers.