The problem with monthly subscriptions

Competetive Marketing

The problem with monthly subscriptions

[Category: Shopping]
Nov. 04, 2019


One of our smaller clients that we only monitor their website and occasionally edit the content reported an increase in online fraud. Our client subscribed for $49 per month for fraud protection when they first built their website. The person who created their Shopify store set up all of the pages and content and connected the transactions with the credit card processor.

The website builder left one thing off, but no one noticed because there were very few online transactions. The fraud detection company requires that a Plug-in for Shopify be installed and set-up for them to prevent fake transactions. The plug-in was never installed, and our client has been paying the fee for several years and no one ever noticed.

A year ago, the client called us in for help. They were getting no business from their website, and the site needed updating. They received a recommendation from an advertising and marketing company that was familiar with our work. After updating the store theme, we corrected some mistakes in spelling and grammar and fixed broken links to manufacturer warranties and videos. We tried a PPC campaign, but with a minimal budget there was little that we could do and after a brief test that PPC campaign ended.

Recently, there has been more website traffic and phone calls coming from the site, and the social media while limited has attracted some attention. After two fraudulent purchases went through and the client was charged back, I recommended the client call their fraud detection company and file a claim. That was when the Fraud Detection Vendor notified the customer that the plug-in needed has to be installed.

The takeaway from this is that the Vendor should be able to detect a lack of traffic, but because there is a monthly fee, there is no incentive for them to contact the customer. The customer who has grown accustomed to paying the fee month after month subconsciously ignores the amount and feels safe that he is protected, when in fact, he was not.

So how much money are subscriptions costing you? A friend just sold their house and canceled all of their monthly services. They are renting, waiting for their new home to be completed. When turning on the subscription services at the rental, they realized they were paying for much more than they were using, and cut their home expenses by nearly $500 a month. The most significant saving came from Cable Television, house phones, and small unnecessary service contracts.

I suggest to all clients to review their monthly subscriptions, cable, telephone, car insurance, homeowners, business insurance, health insurance at least once a year. On auto insurance, we saved over $1,200 one year by calling every insurer and getting new rates. Now every time we have a change like one of the kids moving out, we check for the best current pricing, ignoring the junk-mail from insurance companies claiming savings. One other place that you should look at is Term-Life Insurance, which people get for a specific event (to cover the mortgage, cover the kids for college) but keep paying after the event has passed, but the prices continue to increase.

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Visitor Comments: Average Rating - 5 Stars [Comment] Note: Pages are moderated.

5-Star Rating

You can easily go through your credit card monthly statements and find lots of charges that need to come off, but people being lazy is what keeps this all going. Wells Fargo has an app called Control Tower that reviews recurring monthly charges.

Leo [Nov. 04, 2019]
Visit my website and learn more about Control recurring payments

5-Star Rating

Cutting the television and house phone is a no brainer. Who needs a house phone? If you need 911 service hook up a phone to your house line, it's free.

Sammy [Nov. 04, 2019]
Visit my website and learn more about Cut the Cord

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Robert Furst Competitive Marketing • 22052 Las Brisas Circle • Boca Raton • Florida • 33433 (754) 307-4954
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