Having said that I wonder if that example with the Boston Globe is sort of the old "Be Radiohead" example. In that situation Radiohead sold their album online for whatever you want to pay. It was touted as a good way to do business, because Radioheads sold a lot.
Later someone wrote satirical article telling other bands how they could do the same. Step 1 was "Be Radiohead".
In reality the reason for all the sales were ... they were Radiohead.
I wonder if the Boston Globe is at that scale where they can do that, while other places might not see any new subscribers.
I think that much of the importance of that step might have been lost in the satire.
The lesson is "create something that people truly want to pay for". If you manage to that goal, then cancellations should naturally decrease and/or sales should increase (depending on your revenue model).
Companies with an abusive cancellation policy are essentially saying that their product sucks and they need to try and hold customers hostage to maintain revenue. That is not long run sustainable.
No, that's not the entire lesson. If an unknown indie band had created an identical album, it would not have made anywhere near the same amount. If we're going to distill it down to "what people want to pay for," people usually want to pay for something they think other people like.
Yes, a small indie band would not have the same following as Radiohead at first. They need to build up a series of highly valued releases over time. Which is really all distilled into the "be Radiohead" line.
Or to make it less vague, your pricing and billing strategy may need to change over time. When/if you develop a history of delivering highly valued products and releases you will have the opportunity to explore alternate pricing models.
However, I still think you can distill much of this down to "create something that people really want". If you can do that the pricing part gets a lot easier.
It's a stepped thing.. you start at $30/month. Try to cancel and they offer you $20/month. Say you still want to cancel and they go through a series of discounts till it's < $5/month, maybe as low as $1/month.
When I went through this before online cancellation the process was so gross every new offer made me more determined to cancel even though the better offers were cheap enough to want to keep it. The whole process made me feel like I'd been ripped off.
Not really the same as Radiohead offering to let you name your price from the beginning.
“We wanted to make sure that didn’t clog up the phone lines and create a poor experience for any subscriber calling for any reason,” Brown said in an email. “We then started making it available to more subscribers based on market research that we conducted that showed subscribers wanted this.”
~~~
Reads like: After I hired a market research firm to gather opinions from my brother, I decided to stop poking him with a stick.