Navigating New Subscription Legislation with Collaboration, Cross-Promotions, and DIY Bundling
The proposed regulations by the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) are designed to protect consumers but may also disrupt how brands manage retention and customer interactions.
Here’s what brands can expect:
- Simplified Cancellations: The FTC aims to make subscription cancellations as easy as signing up. This could lead to an uptick in cancellations if businesses aren’t prepared.
- Enhanced Customer Service: The CFPB wants to ensure customers can easily reach human representatives, improving support for consumers but adding operational complexity for brands.
While these changes are likely to benefit consumers, they also place added pressure on subscription brands to retain subscribers and deliver exceptional service. One way to effectively navigate these new regulations is through cross-promotions and DIY bundling — methods that can help brands keep customers longer, reduce churn, and streamline service. Platforms like SubSuite make it simple to implement these strategies.
1. Combat Shorter LTVs by Building Loyalty Through DIY Bundling
Making subscription cancellations easier could naturally result in more cancellations and shorter customer lifecycles (LTV). However, there’s an opportunity to fight this trend through creative cross-promotion strategies.
When using DIY bundling, brands can offer loyalty rewards and cross-service discounts that make leaving harder for the consumer. By tying multiple subscriptions together in a bundle and offering significant discounts or rewards tied to loyalty, customers will be less likely to cancel. Why? They have more than one service and canceling would mean losing valuable discounts and perks across all the services they’ve bundled.
For example, a user with three subscriptions bundled together, each offering discounts or rewards for loyalty, has more incentive to remain a subscriber, knowing they will lose those benefits by canceling. Building these types of multi-service, loyalty-driven offers helps increase LTV, even in a climate of easier cancellations.
Actionable Tip: Use a cross-promotion platform like SubSuite to set up seamless DIY bundling, tying rewards and discounts across partner brands to create added value for your consumers.
2. Enhanced Customer Service Support Through Cross-Promotions
The upcoming legislation’s focus on improving customer service means your brand needs to be ready for an influx of service requests. Cross-promotion platforms can help ease this burden by providing additional support avenues.
If a subscriber encounters issues—whether it’s with payment, accessing services, or general queries—they can reach out to either the platform that facilitated the cross-promotion or the partner brands involved. Having this extra layer of support ensures that the customer has multiple touchpoints for help, making it easier to resolve issues and increasing their overall satisfaction.
Additionally, many cross-promotion platforms, like SubSuite, provide customer service support at no extra cost, which can be a huge relief for smaller brands that may not have large customer service teams.
Actionable Tip: Partner with brands using platforms that offer customer service support as part of their subscription management. This helps manage service issues efficiently and keeps customers satisfied.
3. Transparency & Flexibility Make Cancellations Easier—but Keep Subscribers Engaged
The new rules will make it mandatory for brands to simplify the cancellation process. While this sounds challenging, the transparency that cross-promotion platforms offer can be leveraged to your advantage.
Cross-promotion platforms often offer easy cancellation management tools that help subscribers feel in control. However, you can combine this transparency with win-back strategies — re-engaging subscribers before they finalize their cancellation.
When subscribers understand the value they’re getting from cross-promotion bundles and discounts tied to multiple services, they are more likely to second-guess their decision to cancel. If they truly want to leave, the cancellation process can be simple, but many may choose to stay when offered retention-based incentives or discounts.
Actionable Tip: Create a win-back process that triggers whenever someone initiates a cancellation. Offer personalized retention offers or remind subscribers of the rewards and discounts they’ll lose.
4. Leveraging Winbacks After Cancellations
Even with the best retention strategies, some subscribers may still choose to cancel. However, platforms like SubSuite make it easier to win them back. Once subscribers cancel, they can still manage all of their services from a unified dashboard, giving you multiple touchpoints to re-engage them.
By offering reactivation incentives or cross-promotional deals tied to loyalty rewards, brands can turn these cancellations into win-back opportunities. SubSuite, for instance, enables brands to send re-activation offers directly through the platform, making it simple for consumers to re-subscribe.
Actionable Tip: Set up automated win-back offers that are sent to canceled subscribers, encouraging them to return with a special deal or discount.
5. Boost Retention Through Better Partnerships
Cross-promotions don’t just drive new acquisitions—they also support retention efforts. By collaborating with similar or complementary brands, you create a network of services that builds a richer experience for consumers. If they cancel one service, they’re more likely to retain another—and cross-promotion platforms make it easier for them to reactivate canceled services with minimal friction.
In essence, you’re creating a system of interconnected value that encourages longer-term loyalty and engagement. Brands can even offer exclusive deals within the platform that re-engage users when they log in to manage their other subscriptions.
Actionable Tip: Use your SubSuite dashboard to easily identify high-value partners and set up cross-promotions that offer customers relevant and enticing add-on services.
Conclusion: Navigating New Legislation with Cross-Promotions & DIY Bundles
As cancellation policies become more consumer-friendly, subscription brands will need to adapt. Cross-promotions, powered by DIY bundling, offer a flexible, transparent way to retain customers and grow LTV, even in this shifting regulatory landscape. Platforms like SubSuite make it easier than ever to execute these strategies, providing brands with the tools to collaborate, market, and win back subscribers while lowering CAC and enhancing customer service.
To explore how cross-promotions and DIY bundles can transform your subscription strategy, check out SubSuite today!