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- Dose #143: To Send or Not to Send, That is the Question [Upcoming Billing Reminders]
Dose #143: To Send or Not to Send, That is the Question [Upcoming Billing Reminders]
Why Not Sending a Billing Reminder May Be Increasing Churn
Matt here with your weekly Subscription Prescription đ
Many growing subscription brands donât send an upcoming billing reminder. They donât do it to keep churn lower than it would be had you not sent it. In this weekâs dose, we dive into why that short-sighted behavior is costing you money.
This weekâs dose is also a full podcast interview! Give it a listen on YouTube, Apple Podcast, or Spotify:
Why Sending Billing Reminders is Better for Your Business
This week, Iâm tackling a common debate: Should you send an upcoming billing reminder to subscribersâor skip it to avoid cancellations?
Some brands worry that sending these emails will remind customers to cancel, so they opt out of sending them altogether. But based on everything Iâve seen in subscription businesses, sending billing reminders the right way actually leads to higher lifetime value (LTV) and fewer chargebacks. Letâs break down why.
1. The Chargeback & Customer Service Nightmare
If you donât send a billing reminder, your customers still get a notificationâit just comes in the form of an order confirmation or a surprise charge on their credit card. And when that happens, three things can go wrong:
1ď¸âŁ They contact customer service, frustrated, asking for a refund. Best-case scenario, you issue a refund and lose revenue. Worst case? The product has already shipped, and now youâve lost fulfillment costs too.
2ď¸âŁ They file a chargeback. Chargebacks arenât just a lost saleâthey damage your payment processing health, increase declined transactions in the future, and in some cases, customers can successfully dispute multiple months at once.
3ď¸âŁ They cancel immediately. Without a proactive message from you, theyâre just reacting to a charge they werenât expecting. This means theyâre less likely to accept retention offers and more likely to leave for good.
Skipping billing reminders might delay churn, but it doesnât prevent it. And when those cancellations do come, theyâre often more damaging.
Important Question: If youâre not tracking how many people ask for a refund after their order processes, do you even know if youâre getting a net revenue bump by not sending them?
2. The Missed Opportunity to Drive More Revenue
A billing reminder isnât just a noticeâitâs a touchpoint to engage with subscribers before they make a decision about their next order. If youâre not sending one, youâre also missing a chance to:
Remind them why they subscribed in the first place. A message like "Another month of better sleep is on its way!" reinforces value, instead of just saying "Your order is processing soonâclick here to manage your subscription."
Offer self-service options. Tools like Zaymo let customers adjust frequency, skip a month, or swap products without ever seeing a cancellation button. If youâre worried about churn, give customers better control instead of keeping them in the dark.
Drive upsells and upgrades. Iâve seen brands increase LTV significantly by using billing reminders to offer product add-ons or upgrades to longer subscription commitments (like switching from monthly to quarterly).
If you avoid sending billing reminders to "hide" the subscription from customers, youâre also hiding the revenue-generating potential of that email.
3. The Best Subscription Brands Send Billing Reminders
Some growing brands avoid billing reminders because they see a spike in cancellations when they send them. But hereâs the truth: Larger, more successful subscription brands send billing reminders.
Why? Because higher LTV beats short-term revenue bumps.
If your churn rate is already high, avoiding a billing reminder wonât fix thatâit just delays the inevitable. Instead of worrying about short-term cancellations, focus on building a better customer experience that:
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Makes it easy to adjust frequency instead of canceling
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Creates upsell opportunities inside the billing reminder
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Reinforces why the subscription is worth it
And for those who are going to churn? Theyâll cancel either wayâyou just get to decide whether they cancel before the charge (where you can influence their decision) or after (where you have little control).
Final Thoughts
At the end of the day, the goal isnât just to keep subscribers for one extra monthâitâs to maximize LTV and create a better customer experience. And sending well-crafted billing reminders is one of the easiest ways to do that.
If youâre currently avoiding them because of cancellation fears, test a smarter approach:
1ď¸âŁ Improve the messaging so it reinforces product value
2ď¸âŁ Add self-service options so customers can skip instead of cancel
3ď¸âŁ Include an upsell offer to capture more revenue before the charge
Want help optimizing your billing reminders? Reply to this email or send me a DMâIâm happy to share examples that work.
Thatâs it for this weekâs doseâsee you next Tuesday for #144!
- Matt Holman đŠş
The Subscription Doc