- Almost half of subscription businesses plan to expand internationally over the next year
- 51% of businesses interviewed in Canada cannot quantify the revenue impact from churn or payment failures
Stripe, a financial infrastructure platform for businesses, today launched a new Billing report that looks into current opportunities and challenges for subscription businesses in Canada and around the globe. In Canada, more than 230 decision makers in subscription businesses were surveyed for this, of a total of 2021 across nine countries.
The report finds that the subscription economy continues to be on a healthy growth trajectory. Nearly half (45%) of Canadian businesses are planning investments in global expansion to reach new customers over the next twelve months. However, a significant 70% of business leaders doubt their current billing systems can support their international growth strategy effectively. Consequently, many are considering reassessment of their billing software to facilitate global scalability. In Canada, 52% of survey respondents said they are likely to get an entirely new recurrent billing system in the next 12 months.
The new Billing report also reveals that involuntary churn remains a persistent issue for subscription businesses. Involuntary churn occurs when a subscription ends involuntarily, for example because of failed payments due to expired credit cards. Despite 39% of Canadian businesses experiencing an uptick in involuntary churn over the past year, many lack comprehensive data to quantify revenue loss. More than half (51%) of businesses interviewed in Canada cannot quantify the revenue impact from churn or payment failures, and 83% admit they have not implemented any measures like retry policies to mitigate involuntary churn.
“Reducing customer churn should be on every business leader’s agenda: it’s cheaper than acquiring new customers and an effective way to maximize revenue and increase customer lifetime value. We hope businesses find this report and Stripe’s revenue recovery features a useful foundation,” said Matthew Burlak, Head of Stripe GTM in Canada.
To support businesses of all sizes in accelerating revenue growth, reducing churn, and growing globally easily, Stripe launched Stripe Billing in 2018. Stripe Billing is a software product that helps over 300,000 companies manage hundreds of millions of billing relationships with their customers by making it easy to set up billing plans, customize pricing logic, calculate amounts owed, preview upcoming invoices, apply discounts, send payment reminders, track payments, among many other things. Stripe Billing supports a wide range of pricing models including one-off transactions, sales-based contracts, tiered pricing, and usage-based pricing.
Some of the world’s most notable startups and large Canadian companies are powered by Stripe Billing, like Thinkific and Workleap. Stripe was recently categorized as a leader in Gartner’s Magic Quadrant for Recurring Billing Applications.
About Stripe
Stripe is a financial infrastructure platform for businesses. Millions of companies—from the world’s largest enterprises to the most ambitious startups—use Stripe to accept payments, grow their revenue, and accelerate new business opportunities. Headquartered in San Francisco and Dublin, the company aims to increase the GDP of the internet.
