Minna Technologies launches Merchant Solution to Combat Subscription Cancellations

Minna Technologies announces the release of its Merchant Solution, supporting subscription-based businesses with their need to retain, grow and acquire customers. Today’s announcement marks Minna’s expansion into the merchant community, providing global subscription-based businesses with the ability to recover revenue from previously canceled customers who currently manage their subscriptions through their retail bank app.

Today, about 20% of users can cancel subscriptions using their banking app, where Minna is available. Banks in Australia, the United States, and the UK have adopted consumer protection regulations to support subscription payment management. However, customers can cancel and their bank card may be blocked. This protects the customer from any future unintended payments. Many customers try to resubscribe. According to Experian insights, nearly 80% of those who do try to return do so within 3 months of canceling, but can’t due to the blocked card. Subscription businesses who want to offer the best customer experience will encounter friction because of this.

This announcement is made in several categories, including streaming, gaming and software, which have higher cancellation rates worldwide. Kantar Analytics reports that 1.5 million streaming subscriptions in the UK were cancelled in the first quarter of 2022. Half a Million people attribute the cancellations to money-saving. Although 58% of households have at least one streaming platform, this is only 1.3% less than the 2021 end, these terminations show that viewers are more selective about choosing to subscribe to multiple services.

Tiama Hanson Drury is Chief Product Officer at Minna Technologies. “We are thrilled to allow the 20% of consumers who cancel with Minna to more easily return to the subscription service when it suits them and to enable subscription businesses to more personally retarget these consumers with suitable offers. Not every cancellation is a desire to sever ties with the merchant – often it is a call for increased flexibility or personalization. By keeping the channel open, merchants have the chance to evolve the customer relationship and reacquire the consumer.”

Erica Katsambis, Minna Technologies VP Sales, Partnerships and Solutions for Subscription Businesses, notes: “We have seen the rise of new subscription personas. From the ‘lost, confused and angry’ who are disengaged and canceling via their bank, to the ‘savvy’ consumers switching subscriptions regularly or those consumers happy to try out many new subscriptions, they all demand more from their subscriptions. To retain customers, grow your customer base and avoid unwanted churn, it is crucial to diversify and enhance digital channels and functionality. We are intrigued and keen to work with merchants looking to innovate through the next wave of subscription management.”

Minna’s UK-based client, Lloyds Banking Group, announced in April that over 1.2 million subscription payments have been stopped since the summer of 2021, as technology puts customers in further control of their spending. A majority (47.1%) of the regular payments were cancelled for popular TV, film and music streaming services. This is because households are taking a closer look at their discretionary spending as the cost of living rises.

Minna’s new “Unblock” feature, which is free to Subscription businesses, facilitates communication between banks and trusted subscription businesses to seamlessly unblock bank cards. This feature is being implemented in areas where banks are confident that no wrongful reattempted payment will be taken by businesses. This seamless cancellation/block removal of the card eliminates inefficiencies that could have been caused by long-term, blocked payments.

The Unblock feature is just one of many solutions that the merchant community will have to use to solve problems throughout the subscription lifecycle. It also provides a way to prevent cancellations.

Minna is currently working with nine international retail banks to embed their subscription management technology into the digital banking infrastructure. The technology allows banking clients to manage their subscriptions from within the bank infrastructure, serving over 20 million customers.

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