What is Retention Offer?
Definition
A special discount or incentive offered to subscribers who attempt to cancel, designed to convince them to stay.
Understanding Retention Offer
Retention offers (also called save offers) are triggered during the cancellation flow. Common offers include: percentage discounts (50% off for 3 months), plan downgrades with price reduction, extended trials of premium features, and free months. Cable companies pioneered this tactic, and it's now standard in digital subscriptions.
For savvy consumers, initiating cancellation to receive a retention offer is a legitimate negotiation strategy. Services most likely to offer retention deals include streaming services, SaaS tools, and any service with high customer acquisition costs. However, this strategy may not work every time, especially for lower-cost subscriptions.
Related Terms
Churn Prevention
Strategies and tactics employed by subscription services to retain customers and reduce cancellation rates.
Cancellation
The act of ending a subscription, which stops future billing and eventually terminates access to the service.
Subscription Savings
The money saved by optimizing subscriptions through cancelling unused services, downgrading plans, switching to annual billing, or using bundles.
Discount Code
A promotional code that provides a reduced price or additional benefits when subscribing to a service.