AOL is often seen as the old fogey of the online subscription business, but this old fogey still knows how to milk a subscription Model for all its worth.The company had its lowest decline in revenue in 7 years, reporting an estimated $531 million in revenue for the second quarter. But what few people realize is that 33% of those earning are from the company’s subscription services — that means that more than $175 million is coming from online subscriptions.The company’s COO Artie Minson attributes that number to AOL’s ability to reduce churn and improve customer retention. This includes improving the subscription product by adding features like customer support and security software (see a detailed list of subscriber services in the image below). It’s also meant making a more concentrated effort to save cancellations.”[For] existing customers plus those who call in with a potential cancel intent, we’ve been able to articulate to them the new value we have put in the product,” Minson told Business Insider. “That has improved saves rate, [and] that has had them sign up for new services. When we do that, we have a drastic reduction in churn.”
AOL Makes More Than $175M from Subscription Revenues by Reducing Churn
AOL is often seen as the old fogey of the online subscription business, but this old fogey still knows how to milk a subscription
- Filed in FInance, News, Subscriber Retention
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