Column: In 'membership economy,' automatic renewals favor businesses more than consumers

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Businesses know that lots of people won’t bother with the hassle of canceling a subscription. They may not even know they still have a subscription. That’s just free money for the service provider, writes columnist davidlaz.

Enrique Klapp received an email the other day informing him that his subscription to Norton 360, an internet security service, had been automatically renewed for another year at a cost of $109.99.

The benefits to businesses are perhaps even greater. Churn, or turnover in customers, is reduced, thus lowering customer-retention costs. Future revenue can be anticipated for planning purposes. Significantly, the state also requires that people be able to cancel subscriptions online. Some companies try to make the process as difficult as possible, requiring written requests sent by mail.

In fact, I recommend it. I turned off Norton’s automatic renewal for my home computer. The company responded by offering me a lower price to continue my service, which I took.

 

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In other news, water is wet.

Actually if consumers use their memberships the businesses lose. It’s up to the consumer. Duh. 🙄

Davidlaz Including the LA Times, who doesn’t allow customers to cancel their digital subscription without calling in?

Davidlaz Including a Los Angeles Times subscription?

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