The2023StateofSubscriptionsStrategies

and

trends

forsubscription

grow

thTable

of

contents01Introduction05SubscribergrowthSubscriptionplanadjustmentsSubscriberlifecyclecommunicationsDunningemails02Whysubscriberinsightsmatter0304AcquisitionFreetrialsSubscriptionplanadd-onsImpact

ofsubscribergrowth

onthe

subscriptionindustryCouponsGift

cardsandgift

subscriptions0607ChurnImpact

ofacquisitiononthesubscriptionindustryOverallchurnratesAt-risksubscriberssavedPaymentsImpact

ofchurnonthesubscriptionindustryTop

subscriptionpaymentmethodsDeclinerates2023

subscriptionindustrypredictionsAlternativepaymentmethodsCurrencies0809ConclusionChurnbasedonpaymentmethodImpact

ofpayments

onthesubscriptionindustryMethodologyIntroductionTheeconomyremainserraticandunpredictable,butsubscriptionspersevereasaresilientsolution,helpingbusinessesstabilizerevenue

streamsanddeveloplong-termrelationshipswiththeircustomers.Infact,

theglobalmarket

valueof

thesubscriptioneconomyisexpectedto

top

$1.5

trillion

by

2025.Withinthelargersubscriptionindustry,Recurly?ndsthatdirect-to-consumersubscriptionbusinessesare

inthemidstof

signi?canttransformation,drivenby

anumberof

factors:The

subscription

industryismaturing–competition,commoditization,andotherfactorsmake

subscriptionsincreasinglycomplexto

manage.Macroeconomic

pressures

suchastheloomingrecession,in?ation,andconsumercon?dencecreate

anenvironmentwhereconsumersmake

moreintentionaldecisionsabouttheirspending.Subscriber

expectationsare

evolving

to

thepointwherepersonalization,value,andconveniencecontinueto

setthepacefor

consumerexpectationstorise–andsomebusinessesare

strugglingto

keep

up.Whileanewyearwillundoubtedlypresentnewtrialsfor

recurringrevenuebusinesses,subscriptionsremainoneof

thefastest-growingindustries–andforgoodreason.2023StateofSubscriptions|3Why

subscriberinsightsmatterSubscriberinsightsarecriticaltounderstandingthe

healthofyourbusiness.Theinterpretationofconsumerbehaviors,customerdata,andsubscriberexperiencefeedbackshedlightonwhat’sworkinginyourbusinessand,arguablymoreimportantly,what’snot.

Insightspavethe

wayfora360-degree

viewintoyourproducts

orservices,

marketingcampaigns,subscriberactions,

andmore,allowingyoutointelligentlytestand?ne-tune

yourrecurringrevenuestrategy.Moreover,insightsprovideadeeperunderstandingofthe

most

important

part

ofyourbusiness:yourcustomers.Diveintowhattheylike,howtheythink,howtheynavigateyourplatform,andwhytheyconverted–informationthatiscriticaltoyourbusiness’growth

andlong-termsuccess.TheRecurlybenchmarksinthisreport

haveledustoafewconclusions(moreonthatlater),but

oneofthe

most

prevalent?ndingsisthatconsumershaveastrongappetiteforpersonalizedexperiences.Usinginsights,businessescantailortheiro?eringsandexperiencestomeetthe

demandsoftheirsubscribers.AccordingtoMicrosoft,“organizationsthatleveragetheircustomerbehaviordatatogenerateinsightsoutperform

peers

by85%insalesgrowth.”Subscriberinsightsinformstrategicdecisionsthatdeterminethe

courseofyourbusinessandlong-termsuccess.Morespeci?cally:Insightspaintacomprehensivepictureofwhichsubscriberschurnandwhy,allowingyoutooptimizeareastoreducechurnrates.Amoreenjoyablesubscriberexperienceencouragesloyalty,increasescustomerlifetimevalue,andultimatelyboosts

revenuegrowth.Insightsrevealyourmost

pro?tableacquisitionchannelsandcustomers,createidealcustomerpro?les,andconstruct

subscriberjourneymapsthatspeaktothe

needsandwants

ofyourmost

high-valuesubscribers.Theability

tohoneinonpreferredpaymentmethodstocreateacustomizedcheckoutexperienceistheresultofconsumerinsights.For

2023,Recurlywants

toprepareyouwith

the

rightinsightstoembarkonanewyear.Ourstory

ofthecurrentstateofsubscriptionsistoldwith

realdatafromrealsubscriptionbusinessesfacingrealchallenges–datafromover2,200leadingbrandsandover55millionactive

monthlysubscribersusingRecurly.In

thefollowingchapters,wethoroughlyexaminethe

stateofacquisition,payments,

subscribergrowth,

andchurninthe

subscriptionindustry.Theinsightsfromeachchapterpointtothe

most

prominentsubscriptiontrendsfrom2022,

theirimpact

onthe

industry,andhowsubscriptionbusinessescanusethisinformationto?ourishin2023.2023StateofSubscriptions|4AcquisitionSuccessfulsubscriberacquisitionisthree-fold:Pricing,packaging,andpromotions.Thesecomponentsworktogethertoformawell-roundedsubscriberacquisitionstrategy

thathelpsrecurringrevenuebusinessesgrow,but

the

e?cacy

ofthesethreepillarscomesdowntounderstandingthe

currentmarketconditions,whatyourcompetitorsaredoing,andhowconsumersarerespondingtoyourmarketinge?orts.Free

trialsIn

2022,

consumerstookadvantageofalmost35millionfreetrialsgloballyfromparticipating

subscriptionsitesmanagedbyRecurly’smerchants.Freetrialstarts

weremeasuredatthe

subscriptionlevel,whereanaccountwith

two

freetrialsubscriptionswouldbecountedtwice,forexample.Out

ofthe

participating

sites,34.5%ofthemo?eredfreetrialswith

anaveragetriallengthof30

days.Industry-levelconversion

rates39.4%

34.3%

43.3%Business&Consumer

GoodsDigital

Media&ProfessionalServices&RetailEntertainment38.0%Travel,Hospitality&Entertainment42

.1%

35.8%EducationSoftwareOverall,the

averagesite-levelconversionratewas38.1%.

Atanindustry

level,the

DigitalMediaandEntertainmentsectorhadthe

highestconversionrateof43.3%,

whileConsumerGoods

&Retailhadthelowestconversionrateof34.3%.2023StateofSubscriptions:Acquisition|5Conversion

rates

by

trial

length42.8%41.0%

39.6%Lessthan

or

equal8to

14days15to

21

daysto

7days41.

3%

38.0%

33.3%22to

31

days32to60

days61

ormoredaysIn

general,whenconversionratesarebrokendownbyduration,freetriallengthslessthanorequaltosevendayshadthe

highestconversionratesof42.8%,whereastriallengthslongerthan61

dayshadthe

lowestconversionratesof33.3%.90.4%offreetrialsrequiredbillinginformation,andofthesetrials,the

averageconversionratewas40.1%.Theaveragetriallengthfortrialsrequiringbillingdetailslasted30

days.Of

the

trialsthatdidnotrequirebillinginformation,the

averageconversionrateis25.5%,with

anaveragetriallengthof60days.CouponsIn

2022,

over19

millioncouponswereredeemedbycustomersofRecurlymerchantswhoo?eredthem.Themost

popularpercentagediscountwas20%,

andthe

most

populardollardiscountwas$10.AtRecurly,acouponisde?nedasaone-time

discountonasubscription.Shopperssaved

$30,158,934

thankstocouponsfrom

Recurlymerchants.2023StateofSubscriptions:Acquisition|6Giftcards

and

giftsubscriptions34,944

gift

cardswereredeemedinRecurlyin2022,

with

anaveragegift

cardamountof$109.289,952gift

subscriptionswereconvertedtorecurringsubscriptions,lasting345daysonaverage.Gift

subscriptionsaren’taswidelyusedastrialsandcoupons,but

theirgrowth

isexplodingasthisisoneofthe

most

cost-e?ective

waysformerchantstoacquirenewsubscribers–andtheyalsomakegreatgifts.Impactof

acquisition

on

the

subscription

industryWhiletherewasaslightdeclineinthe

numberoftrialsstarted

andthe

averageconversionratefromtrialtosubscription,the

motivationbehindeachoftheseacquisitiontactics

isclear:Consumersaremorelikelytotry

newservices

if

theyincludeanewcustomerdiscountortrial.Whilesomenicheshaveconversionrateshigherthan50%ontrials,consumerswantavariety

ofoptionswhenit

comestokeepingmoneyintheirwallets.If

you’reoptingforfreeordiscountedtrials,try

thesetactics:O?ershortertrials(sevendaysorless)thatstill

allowconsumerstoexperiencethe

best

ofyourproductorservice.Evenif

the

trialstarts

atyourmost

basicplan,upsellpotentialsubscribersatthe

endofthe

trialperiodtoincreasetheirperceivedvalueofyoursubscription,orimplementramppricing

toentice,hook,andrewardsubscribersovertime.Couponsandpromotionscaneasilybepairedwith

trialstocreateincentivestoconvert.

Atatrial’send,o?eracouponcodethatdiscountstheirtotalforthe

?rst

monthorsuggestanannualplantosavemoreinthe

longrun.Atatimeascrucialasacquisition,recurringrevenuebusinessesmust

learntohighlightthe

valueinawaythatappealstoprice-consciousconsumers?nanciallyandemotionally.GUIDERead

moreMaximizinggrowth

withsubscriptioncustomeracquisition2023StateofSubscriptions:Acquisition|7Since2018,therehasbeena47.8%

increaseinthe

numberofRecurlymerchantsusingcoupons,andthenumberofcouponredemptionshasincreasedby261.5%–couponsarenotgoinganywhere

andconsumersdon’twantthemto.However,thereisonebigopportunity

forsubscriptionbusinesses:gift

subscriptions.Throughoutthe

yearandespeciallyduringthe

holidayseason,gift

subscriptionsarenotgetting

the

attentiontheydeserve–in

fact,

arecentRecurlysurvey

foundthatnearly70%ofconsumerswanttogiveandreceivegiftsubscriptions.But

the

truth

is,lessthan5%

ofRecurly’smerchantso?ergift

subscriptions.In2022,

289,813subscriptionsstarted

asgift

subscriptions,sodon’tforgetthiscost-e?ective

waytoacquiremorecustomersandgeneratemorerevenue.Theperfect

blendoftrials,couponsandpromotions,andgift

optionscreatesarobustacquisitionstrategythattapsintoconsumers’ever-changingpreferences.It’simperativethatyoupartner

with

asubscriptionmanagementandrecurringbillingplatformthato?erstheseoptionsandthe

?exibility

totestanditerateontheseo?ersconstantly.Capitalizeontheseopportunities

toattract

high-valuesubscribersfromthebeginningandkeepthemaroundwith

rewardsandincentivesthroughoutthe

subscriberjourney.Sharethischapter2023StateofSubscriptions:Acquisition|8PaymentsSubscriptionbusinessesneedtounderstandthe

evolvingconsumerbehaviorsandpaymenttrendsthatdrivepaymentexperiences.AccordingtoC,56%ofconsumerswouldbe“permanentlyputo?shoppingonasite”

if

theycouldn’tusetheirpreferredpaymentmethod.Themessageisclearforbusinessesthatrelyonrecurringrevenue:paymenttypes

matter.In

thischapter,westudiedthe

most

popularpaymentmethods,declinerates,alternativepaymentmethods(APM),

currencies,andthe

impact

ofpaymentmethodsonchurntoestablishglobalandindustrybenchmarksforsubscriptionbusinessestoleverageinthe

creationoftheirpaymentinfrastructure.ThisdatacomesfromRecurlymerchantsprimarilybasedinNorth

AmericaandEurope.To

psubscription

payment

methodsTop

payment

methodsoverall52.9%

26.7%

18.8%

1.6%DebitCreditPayPalOtherThemost

popularpaymentmethodbyfar,

debitcardsaccountfor52.9%ofglobaltransactions

inRecurly.Creditcardsfollowwith

26.7%oftotaltransactions,

andPayPalisthe

thirdmost

popularpaymentmethodoverallandthe

most

popularAPM

worldwide.Debitcardsarethemostpopularpaymentmethod,makingup52.9%oftransactionsinRecurly.2023StateofSubscriptions:Payments|9WhenbrokendownbyRecurlycustomersbycontinent,consumersinAfrica,North

America,andOceaniamakemost

oftheirpurchaseswith

debitcards.In

Europe,PayPalisthe

most

popularpaymentmethod,whilecreditcardsareusedinthe

majority

oftransactions

inAsiaandSouth

America.Likethe

most

popularpaymentmethodsglobally,the

secondandthirdmost

usedpaymentmethodsbycontinentarealsocreditcards,debitcards,andPayPal.Top

payment

methodsby

continent66.5%37.2%49.8%DebitCreditPayPalAfricaAsiaEurope54.9%62

.1%47.0%DebitDebitCreditNorthAmericaOceaniaSouthAmericaDecline

ratesDeclineratesremainedsteadyin2022,

hoveringaround5.4%forcreditcards,11.1%fordebitcards,and5.8%forAPMs.

Comparedto2021,Recurlymerchantshaveseenanincreaseindeclineratesforalltransactions.Overall,declineratesarelowestforcreditcards

andhighestfordebitcards.Overall

decline

ratesAlltransactionsInitialtransactionsRecurringtransactions5.4%

6.3%11.1%

9.2%5.4%

4.8%6.2%13.0%6.9%CreditDebitAlternativepaymentmethods2023StateofSubscriptions:Payments|10Consideringalltransactions

madeinRecurlyin2022,

debitcardshadthe

highestaveragedeclinerate(11.1%)comparedto5.4%forbothcreditcardsandAPMs.

APMs

hadthe

lowestinitialtransaction

declinerateat5.4%,andcreditcardshadthe

lowestrecurringtransaction

declinerateat6.2%.For

bothinitialandrecurringtransactions,

debitcardsalsohadthe

highestaveragedeclinerateat9.2%and13.0%,

respectively.An

initialtransaction

isthe

?rst

transaction

onthe

?rst

invoiceforasubscription,whilearecurringtransaction

isthe

?rst

transaction

onallbut

the

?rst

invoiceforasubscription.Didyou

knowthereareover

2,000reasonsapaymentcanfail?Seethetoppayment

decline

reasons.Decline

rate

by

payment

method11.2%7.9%7.

5%DebitAmazonSEPA7.0%5.7%5.4%Apple

PayPayPalCreditOf

allavailablepaymentmethodsinRecurly,creditcardsexperiencedthe

lowestdeclinerates,andAPMs

hadalowerdeclineratethandebitcardsoverall.Decline

rate

by

industry8.7%

8.0%

7.8%

7.0%

7.0%Digital

Media&EntertainmentConsumerGoods

&RetailBusiness

&ProfessionalServicesEducationSoftwareBy

industry,declineratesarerelativelysteadyacrossthe

board.Businessesindirect-to-consumerindustrieslikeDigitalMediaandEntertainmentandEducationexperiencethe

highestdeclinerates,similartotheirpatternsforchurnrates.2023StateofSubscriptions:Payments|11Alternative

payment

methodsRecurlycurrentlysupports

AmazonPay,

Apple

Pay,

PayPal,SingleEuroPaymentsArea(SEPA),andVenmo.WhensubscribersusedAPMs,

Recurlymerchantssawa1.5%lowerrateoffraudulentdeclinedtransactionscomparedtothatofcreditanddebitcards.In

2022,

fraudulenttransactions

fromusingAPMs

accountedfor0.1%ofallAPM

transactions

inRecurly,whereasfraudulenttransactions

fromusingcreditanddebitcardsmadeup1.6%ofallnon-APM

transactions.Recurlymerchantssawa1.5%lowerrateoffraudulentdeclinedtransactionswithAPMs

comparedtothatofcreditanddebitcards.Percentage

oftotal

transactionsfrom

APMsby

industry6.8%

16.1%

23.0%

17.

5%

15.5%Business

&ProfessionalServicesConsumerGoods

&RetailDigital

Media&EntertainmentEducationSoftwareMerchantsinthe

DigitalMediaandEntertainmentindustry

hadthe

most

transactions

byAPMs,

accountingfor23.0%oftotaltransactions.

Furthermore,the

DigitalMediaandEntertainment(41.8%)andEducation(41.4%)industrieshadthe

highestpercentageofsitesinRecurlyusingAPMs.In2022,

PayPalwasthemostpopularAPM–it

accounts

for

18%of

alltransactions

and

92%

of

APM

transactions

so

far.As

ofOctober2022,

PayPalisthe

most

usedAPM

globally,accountingfor18.4%oftotaltransactions

and91.9%

ofalltransactions

madewith

APMs.

Additionally,Apple

PayandSEPAarebecomingincreasinglypopularpaymentoptions,experiencing182.0%and33.2%

year-over-yeargrowth

in2022,

respectively.2023StateofSubscriptions:Payments|12CurrenciesIn

2022,

PayPalo?eredatotalof36

currencies–themost

currenciesofallAPMs

onRecurly–andhasbeenleadingincurrenciessince2018.Amazono?ered24

currencies,Apple

Payo?ered12currencies,Venmoo?eredsixcurrencies,andSEPAo?eredfourcurrencies.Percentage

ofmerchantsthato?er3+

currencies

in

theAPM41.9%

27.

5%

28.0%

56.6%

56.3%AmazonApple

PayPayPalSEPAVenmoThetableaboverevealsthe

percentageofmerchantsthato?erthreeormorecurrenciesineachAPM.

Forexample,ofthe

merchantsusingVenmoasanAPM,

56.3%

ofthemo?erVenmointhreedi?erentcurrencies.Percentage

ofmerchantsby

annual

total

payment

volume

thato?er3+

currencies7.2%

19.9%

29.6%

23.1%

33.3%<$1M$1M-$9.9M$10M-

$49.9M$50M-$99.9M$100M+Thetableaboveshowsthe

percentageofmerchantsthathavethreeormorecurrenciesperAPM

atspeci?cannualtotalpaymentvolumethresholds.For

example,ofthe

merchantso?eringthreeormorecurrencies,33.3%

haveatotalpaymentvolumeofover$100

millionannually–asbusinessesgrow,o?eringmorecurrenciesallowsthemtoaccommodatelargeraudiences.2023StateofSubscriptions:Payments|13Churn

based

on

payment

methodLookingatmerchantsthathaveatleast100

active

monthlysubscribers,weanalyzedchurnrates

basedonthe

last

paymentmethodusedbeforeasubscriberchurned.Similartodeclinerates,creditcardsareassociatedwith

lowerchurnratesanddebitcardsareassociatedwith

higherchurnrates.Churn

rates

by

payment

methodOverallchurnInvoluntarychurnVoluntarychurn5.9%

1.9%

4.0%9.7

%

4.9%

4.9%7.7

%

2.7%

5.0%CreditDebitAlternativepaymentmethodsInvoluntarychurn

washighestfordebitcardtransactions

andlowestforcreditcardtransactions,

and,whilevoluntary

churnwasrelativelystable

acrosspaymentmethods,creditcardpayments

sawaslightlylowervoluntary

churnrate.Overall

churn

rates

by

payment

methods,by

industryBusiness&ConsumerDigitalMedia&EntertainmentEducationSoftwareProfessionalServices

Goods&RetailCreditDebitAPM6.4%6.7%

6.5%

7.6%

5.0%9.6%

10.8%

12.2%

8.4%8.8%

7.7

%

9.5%

5.9%10.4%10.2%2023StateofSubscriptions:Payments|14How

does

your

churn

rate

compare?Seeour

2022

churn

rate

benchmarks.In

general,B2CbusinessesexperiencehigherchurnratesthanB2Bbusinessesasthesepurchasespresentfewercostrisks.ComparedtoB2Bbusinesses,DigitalMediaandEntertainment,ConsumerGoods

andRetail,andEducationindustrieshavehigherchurnratesregardlessofpaymentmethod.Impactof

payments

on

the

subscription

industryFromourresearch,onethingisclear:consumersexpect

anddemandchoiceswhenit

comestopayingfortheirsubscriptionservices.

Whilesomevariationsindeclineratesacrosspaymentmethodsareduetodi?erencesinconsumerpreferencesandnotthe

paymentmethod,subscriptionbusinessesmust

prioritizeastrongpaymentstrategy

tooptimizethe

factors

theycancontrol.Ultimately,moreisbetter–abalancedmixofseveralpaymentmethodscoupledwith

athoughtful

paymentexperiencemakesconsumersmorelikelytoconvert.Whiledeclineratesandinvoluntarychurnrateshaveincreasedasaresultofmacroeconomicconditions,recurringrevenuebusinessescandiversify

theirpaymentmethodstominimizethe

impact

oftheseproblemareas.Debitcards,whiletheyaccountfor52.9%ofglobaltransactions,

havethe

highestdeclinerateofallpaymentmethodsat11.1%.

Thereareanumberofwaystocombatpaymentdeclineswith

automatedtechnologiesandprocesses,yetoneofthe

best

personalizationoptionstoremedyhighdeclineratesandgeneratemorerevenueopportunities

istoaddAPMs.APMs

havebecomeincreasinglypopularamongmodern-day

consumers–infact,

Recurlymerchantssawa1.5%lowerrateoffraudulentdeclinedtransactions

with

APMs

comparedtothatofcreditanddebitcards.Adiverseselection

ofpaymentmethodsmeansmoreopportunities

forconsumerstopayhowtheywant,

andthe

ability

tocustomizetheirexperiencesisacriticalfactorinconsumers’purchasedecisions.Alternativepaymentmethodsareoneofthemoste?ectiveways

togeneratemorerevenue

andbettermanagefraud.2023StateofSubscriptions:Payments|15In

additiontoAPMs,

o?eringnumerouscurrenciesimprovesinclusivity

andallowssubscriptionbusinessestocatertoamorediverseaudience.As

we’vefoundinourresearch,ofmerchantso?eringthreeormorecurrencies,athirdofthemhaveatotalpaymentvolumeofover$100

millionannually–ifyouwanttogoglobalandscaleyourbusinesssuccessfully,o?eringmorecurrencieswillallowyoutoattract

moreconsumersfromaroundthe

world.Typically,businessesbringinginlessthan$1millioninannualtotalpaymentvolumearesmalleranddon’tneedtoaccommodateasizableaudience.Muchlikedeclinerates,payments

viacreditcardsandAPMs

experiencelowerchurnratesandpaymentsviadebitcardsseehigherchurnrates.Voluntarychurnratesaredependentonconsumers’preferencesandtheirresponsetoasubscriptionservice,

andasaresult,ourvoluntary

churnbenchmarksaresteadyregardlessofpaymentmethod.Recurringrevenuebusinessescanhavegreatercontrolovertheirinvoluntarychurnratesbydiversifyingtheirpaymentoptionsinfavoroflow-churn

methodsandimplementingdeclinemanagementtechniques.With

highercreditlimits

andlowerdeclinerates,recurringtransactions

with

creditcardsaremorereliablethanwith

debitcards,soinvoluntarychurnratesstay

low.In

fact,

involuntarychurnratesofcreditcards(1.9%)andAPMs

(2.7%)aresigni?cantlylowerthanthatofdebitcards(4.9%).To

mitigatedeclineratesandchurnrates,subscriptionbusinessesmust

createapayments

experiencethatconsidersevery

touchpointofthe

subscriberjourney–andhavethe

rightsubscriptionmanagementandrecurringbillingtohelpexecutethat.Sharethischapter2023StateofSubscriptions:Payments|16Subscriber

growthSubscribergrowth

trendsareanything

but

constant.

It’suptoyoutouncoverthe

strategiesthatresonatewith

yourhighest-valuesubscribersandcreateiterable,scalableexperiencesthatmirrortheirrevenue-generatingbehaviors.It

allcomesdowntounderstanding–and

delivering–whatyoursubscriberswant.Recurlymerchantshaveseena21%increaseinsubscriptionsfrom2021to2022.By

location,Europehasseenthe

most

signi?cantincreaseinactive

subscribersandsubscriptionssince2018,followedbythe

UnitedStatesandOceania.Recurlyhasseenthe

most

substantialgrowth

with

ourmerchantswhoarebasedinthe

UnitedKingdom,Canada,andAustralia.Percentage

increase

in

thenumberofactivesubscribers

from

2021

to

2022Percentage

increase

in

thenumberofactivesubscriptions

from

2021

to

20227.9%16.7%UnitedStatesUnitedStates20.1%24.6%EuropeEurope1.6%24.6%AsiaAsia2023StateofSubscriptions:Subscribergrowth|17Subscription

plan

adjustments40%ofRecurlymerchantsmakeplanchangeseachyearRecurlymerchantso?eratotalof36,508

plans.In

ouranalysis,aplanchangeincludesadjustments

toprice,billingfrequency,setupfees,andtrials.We

foundthatapproximately40%

ofRecurlymerchantsmakeplanchangeseachyear,manymakingmultipleadjustments.Of

the

Recurlymerchantsitesthatunderwentplanchanges,merchantsinthe

DigitalMediaandEntertainmentandConsumerGoods

andRetailindustriesmadethe

most

planchangesin2022.

Theindustry

with

the

leastplanchangesthisyearisTravel,Hospitality,andEntertainment.Subscriber

lifecycle

communicationsRecurlymerchantssentout

300.7millionemailsin2022.

95%ofmerchantsuseRecurly’ssubscriberlifecyclecommunicationsfeatures.Whenbrokendownbyindustry,the

DigitalMediaandEntertainmentindustry

sendsthe

most

emailsbyfar,

accountingfor76.6%oftotalemailssentin2022.

Software

(9.4%)andConsumerGoods

andRetail(7.9%)industriesfollowwith

the

secondandthirdmost

emailssent,

emphasizingthe

importance

ofconsumer-facingbusinessesstaying

inregularcontactwith

theirsubscribers.Recurly

merchantssentover

300millionemailsin2022.Dunning

emailsDunningcommunicationsaresentwhenaninvoicefailsits

initialpaymentattemptforautomaticinvoicesorwhennettermspassformanualinvoices.If

anyinvoicesgopast

due,Recurlywillusethe

applicabledunningcampaign

forthatinvoicetoattempttorecoverthe

subscriber.In

2022,

Recurlymerchantssentover70

milliondunningemails.Ourmerchantshavethe

optiontochoosefromover15,000

dunningcampaigntemplates.Businessesinthe

B2CsectorlikeDigitalMediaandEntertainment(60.2%)andConsumerGoods

andRetail(16.9%)

usedunningemailsthe

most

aschurnlevelsarehighestwhenthe

monetary

investmentislowest,

suchaswith

consumerpurchasesversusbusinesstransactions.Recurly

recovered

$214

millioninrevenue

fromdunningemailsalonein2022.2023StateofSubscriptions:Subscribergrowth|18DunningemailshavehelpedRecurlymerchantsrecover$214millioninrevenuealonein2022.

On

average,Recurlymerchantsgenerated$3.01

inrevenueperdunningemailin2022–thisisatremendousreturnwithminimalincrementalcostthatRecurlyhasautomated.Total

recovered

revenue

from

dunning

emails220M$214M212M190M$184M160M$151M130M$133M100M$100M02018201920202021