Subscription fatigue is especially problematic for SaaS companies, as they built their success on this business model. So, we asked experts how companies can recognize and combat this phenomenon. <\/p>\n\n\n\n
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- Subscription fatigue is when consumers feel overwhelmed and frustrated by the growing number of subscription services and products available to them. <\/li>\n\n\n\n
- Signs of subscription fatigue include lower customer engagement, a decrease in product usage, and an increase in churn rate.<\/li>\n\n\n\n
- Companies should focus on providing added value and building loyalty instead.<\/li>\n<\/ul>\n\n\n\n
What is subscription fatigue and how does it affect SaaS companies?<\/h2>\n\n\n\n
Subscription fatigue is a notion of overwhelm and frustration consumers feel as a result of an increasing number of products and services they\u2019re subscribed to. <\/p>\n\n\n\n
In 2024, ExpressVPN surveyed 4.000 people<\/a> across the US, UK, France, and Germany, and the results indicated that almost 40% of them feel overwhelmed by the number of subscriptions they have. <\/em><\/p>\n\n\n\n
Moreover, the study showed that the biggest problem is the mental burden<\/strong> subscription fatigue creates. Users feel bogged down with managing numerous accounts, remembering passwords, and tracking renewal dates. <\/p>\n\n\n\n
Then, there\u2019s the financial aspect<\/strong> \u2014 customers\u2019 wallets are cumbered by all those monthly fees for services they don\u2019t even use fully or regularly. This leads them to question whether they need all these products at all. <\/p>\n\n\n\n
The situation is particularly challenging for the SaaS industry, as it thrived on the subscription-based model for over a decade: <\/p>\n\n\n\n
\u201cFrom 2012 onward, the playbook was straightforward: create software, implement monthly or annual fees, lock customers into contracts, and watch revenue compound\u201d,<\/em> Jo\u00e3o Fernandes, Innovation Specialist at MC Sonae, wrote for Medium<\/a>.<\/p>\n\n\n\n
However, as customers’ habits changed and the market became oversaturated, this approach hit its limits. Fernandes indicates that the main problem in the subscription model is that customer loyalty wasn\u2019t built on the product value, but rather on \u201cthe inconvenience of unsubscribing. As a result, loyalty became tenuous, grounded in habit rather than genuine satisfaction, and many SaaS customers began to feel locked in rather than empowered\u201d.<\/em><\/p>\n\n\n\n
Subscription fatigue became such a problem that US authorities had to intervene. The Federal Trade Commission passed the \u201cClick-to-Cancel\u201d rule<\/a>, urging all companies, including SaaS, to enable customers to cancel subscriptions as easily as they applied for them \u2014 in a single click. The rule will go into effect on May 14, 2025.<\/p>\n\n\n\n
How to spot subscription fatigue<\/h2>\n\n\n\n
According to Zac Stucki<\/a>, CEO of IgnitionPoint Strategies, companies can assess and predict fatigue by monitoring 3 key metrics: customer satisfaction, user activity, and user engagement:<\/strong><\/p>\n\n\n\n
\n\n![\"\"](\"https:\/\/cake.com\/blog\/wp-content\/uploads\/2025\/02\/Zac-Stucki.jpeg\")
<\/figure>\n<\/div>\n\n\n\n\n\u201cCustomer satisfaction tells you whether customers believe the product solves their problems and meets their needs. User activity indicates how often they\u2019re using the product. User engagement shows whether the product is a part of customers’ daily workflows and habits\u201d.<\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n
Senior Director of Client Success at Aspire Software, Travis Willis<\/a>, says that declined customer engagement and product usage are usually followed by \u201ca rise in churn rates, increased support tickets related to billing or cancellation, and limited to no customer interest in new training or product updates\u201d.<\/em> These patterns indicate that customers no longer see value in the subscription. <\/p>\n\n\n\n
\n\n\n\n\n\n\nFurther reading<\/strong>:<\/p>\n\n\n\n
Are you excited about innovations the SaaS industry will bring? Check out this article:<\/p>\n\n\n\n
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- Future of SaaS: Key Trends and Predictions From Industry Experts<\/a> <\/li>\n<\/ul>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n
How to overcome subscription fatigue<\/h2>\n\n\n\n
Our experts say that subscription fatigue happens when costs outweigh the perceived value. They provide advice and strategies SaaS companies can implement to combat this challenge and retain customers.<\/p>\n\n\n\n
Focus on quality and value of products<\/h3>\n\n\n\n
\u201cThe days of signing customers and assuming they\u2019ll stick around are over,\u201d <\/em>says CEO of IT Monks, Alex Osmichenko<\/a>. He adds that \u201cretention is a fight, and loyalty isn\u2019t automatic. If a SaaS company isn\u2019t proving its worth every month, it\u2019s at risk\u201d. <\/em><\/p>\n\n\n\n
Therefore, instead of locking customers with subscriptions, companies should focus on providing added value through their products<\/strong>. <\/p>\n\n\n\n
\u201cIf customers see your tool as a must-have, they will buy it. That means real impact <\/em>\u2014 saving them time, making them money, and solving an actual problem. If a product doesn\u2019t directly connect to business results, it\u2019s in trouble\u201d,<\/em> states Osmichenko.<\/p>\n\n\n \n
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\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n\n \n\n\n\nImplement a customer differentiation strategy<\/h3>\n\n\n\n
Stucki advises companies to split the customer base into specific groups. This strategy allows you to define bottlenecks and find the appropriate department to address particular customer needs. He suggests splitting customers by role to: <\/p>\n\n\n\n
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- \u201cPayers\u201d (who pay invoices), <\/li>\n\n\n\n
- \u201cDeciders\u201d (who choose your service), and <\/li>\n\n\n\n
- \u201cUsers\u201d (who use the product).<\/li>\n<\/ul>\n\n\n\n
\u201cIf \u2018Payers\u2019 are fatigued, your payment process is likely a hassle. Work with your team to streamline payments and reduce friction. If \u2018Deciders\u2019 are fatigued, it\u2019s because they\u2019re not seeing the value or outcomes promised during the sales process. Align your sales and product teams to clarify expectations and bridge the gap\u201d, <\/em>advises Stucki, and adds: <\/em><\/p>\n\n\n\n
\n\n<\/figure>\n<\/div>\n\n\n\n\n\u201cIf \u2018Users\u2019 are fatigued, the product is difficult to use and they aren’t getting the results they need.\u201d <\/em>In this case, he recommends sharing customer feedback with the product team to improve user experience<\/em><\/em><\/em><\/em><\/em><\/em>.”<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n
\u201cThis role-specific, cross-departmental approach leads to more tailored solutions and stronger relationships\u201d<\/em>, emphasizes Stucki.<\/p>\n\n\n\n
Provide personalized solutions<\/h3>\n\n\n\n
With the growing offer of tools and the rise of AI, customers expect solutions tailored to their specific needs. Therefore, our experts underline the importance of customization.<\/p>\n\n\n\n
\u201cWe focus on providing personalized customer success strategies, continuous feature updates, and proactive ongoing support to ensure our clients see ongoing, measurable benefits that justify their subscription and keep them committed long term\u201d<\/em>, says Willis.<\/p>\n\n\n\n
To understand the specifics of what customers need, co-founder of Movadex, Salome Mikadze<\/a>, advises companies to make the most of data analytics: <\/p>\n\n\n\n
\n\n![\"\"](\"https:\/\/cake.com\/blog\/wp-content\/uploads\/2025\/03\/Salome-Mikadze.jpg\")
<\/figure>\n<\/div>\n\n\n\n\n\u201cThis data is crucial for making real-time adjustments and ensuring the service remains valuable and relevant. Providing a personalized onboarding experience coupled with proactive support has proven essential in building long-term customer loyalty and satisfaction.\u201d<\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n
Introduce different pricing models and reward loyalty<\/h3>\n\n\n\n
To handle growing competition and users\u2019 requirements, companies could optimize the pricing plans, says Jovana Kandi\u0107<\/a>, VP of Product at CAKE.com. <\/p>\n\n\n\n
\u201cThis could result in an increase in value-based pricing. Value-based pricing is aligned with the value from product usage \u2014 the more value users get, the pricier the plan\u201d<\/em>, she wrote for CAKE.com<\/a>.<\/p>\n\n\n\n
Moreover, Osmichenko advises companies to introduce hybrid pricing: <\/p>\n\n\n\n
\n\n![\"\"](\"https:\/\/cake.com\/blog\/wp-content\/uploads\/2025\/02\/Alex-Osmichenko.jpeg\")
<\/figure>\n<\/div>\n\n\n\n\n\u201cSome companies mix one-time fees with subscriptions, so customers don\u2019t feel locked in. Others go usage-based, which feels fairer because you pay for what you use, not a bloated package.\u201d<\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n
- Future of SaaS: Key Trends and Predictions From Industry Experts<\/a> <\/li>\n<\/ul>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n
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