Research: 45% of customers would switch brands after service disruption
May 20, 2025
Research from Recurly, the subscription and billing platform, puts a spotlight on consumer frustrations, retention challenges and strategies for success in high-traffic periods, revealing that nearly half (45 per cent) of consumers would likely switch to a competitor if they experienced service disruptions during critical moments.
Businesses must prioritise peak performance and retention strategies or risk revenue and customer loyalty, according to the study from Recurly, conducted in partnership with Censuswide.
Report highlights:
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Preventing churn: More than a third (37 per cent) of respondents have cancelled a subscription due to performance issues, while 45 per cent would switch to a competitor if disruptions occurred at a critical moment.
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Consumer frustrations: Slow loading times (30 per cent), account access issues (19 per cent), and payment failures (18 per cent) were the top pain points.
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Communication gaps: Only 39 per cent of consumers are satisfied with how brands communicate service issues, highlighting the need for improved transparency.
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Performance during high-traffic events: 35 per cent of retail consumers faced issues during peak shopping events, while 35 per cent also encountered problems during major entertainment launches.
“Not only are there more disruptions to services today, but subscribers are increasingly empowered due to the wide variety of alternative providers. They’re demanding great service and if they don’t get it, they’re going to go somewhere else. If you haven’t been able to react to payment failures, reacquire customers, or make them happy during the event, then you need to acknowledge this as soon as possible. Be honest and empathetic in communications — ‘you trusted us and we let you down’ — and then make an offer to make it right. You need to know your cohorts, know how valuable they are, and then build your user and payment reacquisition strategy to match,” commented Mary Rosberg, VP Growth Evangelist at Recurly
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