Best Practices For Subscription Services
More and more products and services are moving towards subscription-based models. For businesses, it’s important to carefully track and periodically review all your subscription-based products and services to ensure those subscriptions align with your current business needs. There’s no reason to throw money into a black hole!
For each subscription, be sure to read the fine print to see if and when a subscription auto-renews, what the renewal term will be, what the renewal rate or cost will be (as some subscriptions will renew at a higher rate/cost or be subject to annual increases), what the cancellation policy is and whether there is an early cancellation penalty or fee.
As you review all subscriptions, identify any which you no longer need and cancel those subscriptions at the earliest possible date to avoid auto-renewal and term commitments. For multi-user or multi-license subscriptions, make sure the user or license count align with your current business needs. Avoid paying for what you don’t currently need or use!
Some subscriptions may offer different plan levels or tiers. If you don’t necessarily want to cancel a subscription in its entirety but don’t necessarily need all the bells and whistles in your current subscription, you may be able to downgrade to a different plan level or tier to achieve cost savings.
After canceling or downgrading a subscription, be sure to carefully review your monthly bill or statement. If you canceled a subscription, make sure it is in fact canceled (no further charges moving forward). If you downgrade a subscription, make sure you are being charged the proper agreed upon rate moving forward.
Beware … There are some companies that will make you jump through hoops to cancel a subscription. You may need to escalate the issue to a supervisor or manager; however, if the company still fails to cooperate in canceling a subscription, there are some options.
Contact your credit card company if your subscription is charged to a credit or charge card. Explain to your credit card company the situation and the steps you’ve attempted to resolve the issue with the merchant. Some credit card companies may be able to help, step in and put a stop to the charges.
You may also need to file complaints with the proper local, state and/or federal agencies like the FTC, Department of Consumer Affairs or your State Attorney General’s Office or to non-governmental agencies like the Better Business Bureau. Be certain you’ve documented all your previous conversations and attempts to resolve the issue with the merchant so that these details can be provided in the formal complaint. Some agencies will allow complaints to be filed online and will respond relatively quickly to help get the matter resolved.