Discover the #1 Reason New Subscribers Cancel

Good morning. Happy Monday, everybody. Today we're going to talk about the number one reason people cancel their subscription immediately and then what we can do about that as subscription box owners. So that's what we're going to dig into today. Good morning, everybody. If you'll say hi in the chat for me, I would love to say hi to all of you. And also I put the banner up today. Our Monday Momentum gang is growing. And so if you would like to get a text reminder every Monday morning before I'm about to go live, all you have to do is text me the word Monday to my text number 940-204-0023, and I'll be sending you a little Monday morning text whenever I'm about to go live so that you don't miss out on checking in with me on Monday mornings, getting a little bit of Monday motivation, a little momentum to start your week. Just let me know in the chat. I did drop the YouTube link in the text this morning to see if that would help you guys find me on YouTube. And so let me know if you're a first-time watcher of me on YouTube. Was that helpful for me to drop the YouTube link in there for you? So yeah, I'm gonna come up to the chat. We're gonna get started this morning. Again, Text Me Monday if you want to get that Monday morning text. I will be happy to add you to that group. Good morning, Andre. Good to see you, Andrea. Good morning, Lexi. Good morning, everybody. I can see everybody. That's odd. I don't know. I don't know how to talk this morning. Good morning, Stephanie. Hey, Carmela. Good morning, Rebecca. Hey, Christina. Good morning, Chris. Good morning, Laura. Good morning, Tabitha. Good to see you. Good morning, Wendy. Good morning, Carrie. Good to see everybody. I got a lot of YouTubers, so I think the link worked. For you guys. But let's, let's, let's talk a little bit this morning. You know, y'all know I'm in Texas and it's still summer in Texas. Tomorrow is going to be October 1st and we're still in the mid-90s. But this morning I walked out to the car with my t-shirt on and my sandals and I was like, whoo, it's cold. It's cold outside and it's 61. And I know all of my northerners are laughing at me right now that I feel like it's cold at 61 degrees. But I was cold at 61 degrees. But you have to put this in perspective for all your northerners are like, you wuss, 61 is like shorts weather for us. But you've got to understand that we've had about 3 months of over 100-degree temps. So 61 feels really chilly this morning. So I ran back in and I grabbed the sweatshirt that was laying on my couch and it just happened to be my Forbes sweatshirt. Sweatshirt. And I thought it's, it's fitting because I got my second Forbes feature over like at the end of last week. And I thought I'm going to put that Forbes sweatshirt on and I'm going to celebrate my second feature in Forbes. And, and I was thinking about that as I was driving to work this morning, about how we don't celebrate our wins. Enough. And so I want to start this Monday Momentum before we dig into the cancellations. I want to start by just sharing a win because here's what I know about us. And when I say us, I mean entrepreneurs. And when I say us, I mean typically women right now. There are some guys here with us. Shout out to all the guys watching. But we are just So on to the next thing, on to the next thing, on to the next thing that we really don't stop and celebrate enough, or we think it's boastful or we think it's bragging or we think that nobody cares. And I'm here to tell you that that's not true. And that's a lie that we tell ourselves. People care. It is not boastful. You should be very proud of the things you're winning at. So I want to fill the chat up this morning. With something that you feel very proud of, something that's happened to you. And it can be the smallest win. Do not think that anybody's win is too small to share. But in this community, we lift each other up. We share in celebrating other people. And so I want you to share something that, that you're proud of. I'm proud of being featured in Forbes. That's a big deal for me, and it might not feel like a big deal to people outside of my, you know, entrepreneurial circle that like, oh, so you're in a— you, you got quoted in a, in a Forbes article, no big deal. It's a big deal to me. It's something that I've wanted for a long time, and we've worked really hard at it over the, over the last few years. And to be recognized as a business leader, so recognized so well that Forbes is quoting me is a big deal to me and I want to celebrate that. I don't want to just go on to the next and on to the next and on to the next. So I want to take time to celebrate with you. Julie says, good morning. YouTube work link, but I had to figure out. Okay, good morning, Julie. I want to celebrate with you. Created a lead magnet. That's a big deal. If we've never created a lead magnet before, that's a hurdle we have to get over, right? That's a hurdle that we have to celebrate. Like, Creating a lead magnet, getting it up, getting it running, and getting leads for the first time in our business is a big deal. And I want you to stop and celebrate that today because it's so easy to say, okay, check, on to the next. Celebrate that you did that and you got that done. Okay. What else are we celebrating? Lexi says, I'm finally working on getting a shop again after mine was taken away because I couldn't afford it a year and a half ago. Girl, you know, I celebrate you every, every chance I get. But this is a big deal. Lexi got to the point in her business where she wasn't making enough money and had to give up her workspace, had to go move everything back into her house. How defeating does that feel when you get to a place where you have a warehouse, you have a building space, you're, you're making money, and then COVID hits and your industry takes a huge hit? Her bridal industry took a huge hit during COVID and she had to suck up her pride, give up her lease, and move back home. And now she's got over 1,000 subscribers because she didn't give up. And now she's able to afford that space again. And that should be celebrated. Getting into your own space again is a huge celebration. That's a big deal. Tabitha says all 3 of our subscriptions are growing. Tabitha, I have watched you work so hard. I have watched you just thrive. And Every one of us could say in this economy, it's been really hard. But this gives me inspiration when I see people in this economy, same one you're dealing with, same one I'm dealing with, same one Tabitha is dealing with. When I see her thriving, all of her subscriptions are growing. Let's celebrate that. Let's celebrate that together. Just had my second launch and grew my subscribers As a newbie, I'm thrilled that people other than my friends and family actually order from me. Can we just talk about how big of a deal it is when someone you don't know purchases from you? I'll never forget that feeling. I'll never forget the feeling that I got when some— when an order came through and it was someone I didn't know. I'm like, okay, it's not just a pity order, right? Okay, I'm actually providing something that other people want. I can do this. I'm so excited for you. I'm so excited for you. Karen says, created my emails for automation. That's a big deal. That takes time. That takes energy. That takes effort. Sitting down and knocking that out. That's a big deal. Carmela says, I'm proud of the lines that form at my events to buy and repeat buy my products. That's a win, girl. They're actually asking for a subscription box and eagerly joining my wait, my waitlist. Launch date is imminent. Yes, that is something to celebrate. When people are lining up for you, we should be celebrating that and not just thinking, okay, on to the next. I love these wins. I want you to keep sharing them. I want you to go back and comment on somebody else's win. Let's continue to cheer each other on because sometimes we're afraid to share our wins, and I want to really reduce that. I don't want anyone to be afraid to be excited about what they're doing. And I also want you to make it a habit of celebrating. I want you to make it a habit of taking pause in our busy, busy everyday business life, personal life, all the things we got going on. I want you to take time to stop and celebrate the win, no matter how big, how small. We've got to do that for ourselves. It's going to fill our cup up. So whatever you're drinking this morning, I I got my coffee. Cheers to everybody's wins. Cheers to your next win. And you should be celebrated every single day. Cheers. Coffee. Clink your coffee cup to my, to my computer. Cheers, everybody. And I love coffee. It's like an addiction, but I love that I'm addicted to coffee. Does that make sense? Is that weird? Cheers, everybody. All right, let's dig into Monday Momentum. Thanks celebrating with me and thanks for celebrating with each other. It's really, really important. Sometimes we don't have people in our lives that we feel like we can celebrate with, and that's okay. They don't get it, but we get it because we are, we are like-minded and we get it. Okay, so let's talk about the number one reason people cancel their subscription immediately. So I did a poll last week and I was really intrigued by— I got over 100 answers on this poll of why someone would cancel immediately? Like, why would you purchase a subscription, sign up for a subscription, and, and then cancel it after you received your first box? What would make you immediately cancel? We know the number one reason people cancel over time is typically money, is typically finances. They're cutting costs, they're whatever. But the number one reason that people cancel immediately is because they don't see the value. So I want to talk about that today because I want you to really think about your own subscription box. I'm going to go through a couple examples and I brought props today to show you so you could really get a visual of this. But people don't see the value. And when you say see the value, that is perceived value versus actual value. Okay. So I've got a, I've got a picture I'm going to pull up for you. We've, number one, the number one thing that we can do is set expectations for what they're going to receive. Have you ever seen the, I've got a picture for you. Have you ever seen the FabFitFun boxes that have all the items in them and they're like, wow, I'm going to get all of that for $49. So excited. It's this picture. Of all these items, but you don't actually get all of those items. What this picture represents is all the items that are chosen from. So if you know about FabFitFun, they allow you to customize your box if you have the yearly subscription. And so you get to go in and you get to pick what you want until the stuff runs out or sells out or whatever. But these are all the options. That you get for a FabFitFun Box. So when you see this picture, you think, "Wow, I'm gonna get all of that items." And then you get your box and it's less than half of that. And so the number one thing is we've got to set the expectation for what people are going to get. So when you see a picture like that and you assume you're going to get all of that stuff, that's where the expectation has to be set. I think about this with my own box too, because I have 3 tiers and I always promote and show the ultimate box, but I always make it very clear that this one is the ultimate box. So if you sign up for the monogram box, you're not going to have the t-shirt and you're not going to have the earrings. Okay. And so I'm always making it very clear that this box that I'm opening or this box that I'm showing you is the ultimate box. So we've got to set expectation of what they're going to get and not deceive deceive them for the sale. If you're deceiving someone for this sale, you're going to have an immediate cancellation. Okay, so make sure we're not over-exaggerating what they're going to get in their box just to make the sale or just to gain the subscriber, um, because we want to set the expectation. We're not trying to get a one-time sale here. We're trying to get a subscriber that's going to pay us over and over and over again. Okay. Now, number 2, you probably heard me say this often and also I feel like I talk about it in this, you're gonna get a brand new module this week inside Launch Your Box. It's the new logistics module that I re-recorded and I have brand new lessons in there. But I say this often in the logistics module, but it really applies to a lot of different areas of our subscription box. and that is size matters. Size matters, okay? So when I talk about this, I'm talking about your product size, okay? Don't, don't go left on me here. Product size matters. I wanna talk about, I brought an example for you, 'cause I know you're visual like me, and I wanna talk about this. Okay, so this is my subscription box. Here's a product that I have in my subscription box. It's a monogram sweatshirt. Um, in reality, this monogram sweatshirt cost me $7.50. Okay, it has a high perceived value, and this fills the box nicely. Okay, let me show you something else that's $7.50. Okay, these two jewelry items cost $7.50 as well. You received your box, and, and there, there are more items in this box. What is your perceived value of this versus this? Talk to me in the chat. What's your perceived value if you paid for this box and you got, say, 3 items, and one of those was this, or one of those, those items was this, how do you feel like you're perceiving? The jewelry has the same value, and it has like a higher retail value than that sweatshirt. These 2 items have a higher retail value. This Necklace retails at $25 in my shop. These earrings retail at $18. So do the math, that's $40-something. This sweatshirt's like $39 in my shop. So it has a lower retail value, but the perceived value on this is so much larger than this. And so what I need you to understand is, even though the monetary value is there, our perceived value is not there. So I have to be really cautious when I spend money on small items because I know the perceived value is not going to be there when they open that box and they're going to be disappointed. They're going to be disappointed even though the value of these two items it monetarily are more than this item, right? So I need you to see that as you're working through curating your own boxes. When you have a lot of small items, the perceived value is not there, okay? Let's talk about point number 3: less is more. Less is more. I'm going to show you another example. This was my June subscription box, okay? This was my June subscription box. The bulk of my money went to this giant Ultimate Tote. Like, it's a giant, giant tote when I take it all out. And then the rest of my money went for the smaller items, okay? So this, this less is more. Now I'm going to show you an example of the same. I, I paid $9 to have this custom manufactured in bulk, okay? So my cost into this is $9. This is also $9 worth of stuff. Sometimes we think 'Oh, let me just spend less and give them more' than spending the same and giving them less. Because in our minds, sometimes we think that we need to give them more things instead of spending our money on the quality things. When it comes to quality over quantity, I want you to always pick quality. Can you imagine getting this box without— let's see if I can show you. I'm gonna put it in my lap here. Let me scoot back so you can see a little bit. Okay, getting this box, not getting this giant bag, not getting this giant bag, and getting this instead. How would you feel about this box when you opened it? It has the same cost, like I put the same amount of money in these things. I got a koozie, I got a lip gloss, I got a keychain, I got a, um, face mask, I got some sunscreen, I got some— a hair clip. Shireen says, I would feel like canceling. That's what I need you to see, that the value is not wrapped up in the money that you spent on the items. Nobody knows how much money you spent. It comes off cheap, it comes off junky. These are all of your words in the chat. But if I take the junk out— it's not junk, it's good quality stuff. But the problem is the perceived value of these smaller little items don't compare to this tote. So when I spend my $9 on this bag, it's a huge part of my budget for this box. It's a huge part of my budget. When I spend the $9 on this bag, it makes a statement inside this box. The, the junk that I spent $9 on makes a statement that it's a bunch of little stuff that I'm gonna have laying around or throw away. Okay, so I need you to see that sometimes less is more. A lot of times less is more when we choose quality over quantity, our subscribers are going to stay month after month after month. The, the average my subscriber stays when they subscribe to my monogram box is 18 months. That's crazy. Can you imagine what it takes to get 18 sales from the same person? But my subscriber stays 18 months on average, and I have subscribers that have gotten all 80 of my boxes at this point. They've been there since the very beginning. And I had to learn this the hard way. I had to learn this when I started to fill boxes and I thought, oh, I'm gonna put one more thing, one more thing, one more thing. It's only a dollar here, it's only $2 here, but it didn't have any substantial value to what I was putting in that box. So I want you to, I want you to remember these 3 things. When you, when a subscriber immediately cancels after getting their box, it's because they don't see the value in your box. Okay, so number 1, I need you to set the expectations. This is what you're gonna get. Don't do a bait and switch. You're gonna get all these amazing things. And then people are instantly disappointed, you're setting yourself up for disappointment. You're setting yourself up for a cancellation. And who knows what it took to acquire that customer? But when we do this bait and switch advertising, we will, we will have high churn rate every single time. Number 2, size matters when you're looking at curating items for your box. Make sure the items fill your box, even if they cost— even if it costs the same as smaller items. Always make sure you have that substantial item that fills this box. The sweatshirt costs the same as these two items and has a lower retail value than these two items, but the perception is that this is worth more? You guys told me in the chat it was. Okay, and then number 3, less is more. Spend your bulk of your budget on one hero piece, one hero piece, and spend the rest of your money around that piece, okay, in smaller amounts. Don't put a bunch of stuff in there just to have a bunch of stuff. Quality over quantity wins every single time. And when you can think about those 3 things as you're curating your boxes, when you sit down and you plan your next 3 boxes, I want you to think about size and quality. What are my subscribers going to love to get from me? And Size matters. We've got to fill that box. It gives them— it gives a higher perceived value. All right, all right, let's keep celebrating each other today. Thank you for showing up. Thank you for celebrating with me today. And I want you to think about the number one people— the number one reason people cancel their subscriptions: the value. When you look at your boxes for the next 6 months, box that you've got planned out, do you have perceived value in your box? That's what I want you to think about this week. All right, I'll talk to you guys soon. Have a great week.