Why auto-renew instead of canceling the subscription after free-trial?
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Almost all companies give you a 7/14/30 day free trial to try their service (eg: Netflix, Spotify).
Some people forget to cancel the subscription and after the free trial expires, these companies begin charging instead of asking if you would like to cancel the subscription.
What's the purpose behind of this design? Is it because they want your money and they know that you will forget to cancel the subscription? Or is it because they can't auto cancel your subscription after the free trial?
credit-card
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up vote
1
down vote
favorite
Almost all companies give you a 7/14/30 day free trial to try their service (eg: Netflix, Spotify).
Some people forget to cancel the subscription and after the free trial expires, these companies begin charging instead of asking if you would like to cancel the subscription.
What's the purpose behind of this design? Is it because they want your money and they know that you will forget to cancel the subscription? Or is it because they can't auto cancel your subscription after the free trial?
credit-card
New contributor
add a comment |Â
up vote
1
down vote
favorite
up vote
1
down vote
favorite
Almost all companies give you a 7/14/30 day free trial to try their service (eg: Netflix, Spotify).
Some people forget to cancel the subscription and after the free trial expires, these companies begin charging instead of asking if you would like to cancel the subscription.
What's the purpose behind of this design? Is it because they want your money and they know that you will forget to cancel the subscription? Or is it because they can't auto cancel your subscription after the free trial?
credit-card
New contributor
Almost all companies give you a 7/14/30 day free trial to try their service (eg: Netflix, Spotify).
Some people forget to cancel the subscription and after the free trial expires, these companies begin charging instead of asking if you would like to cancel the subscription.
What's the purpose behind of this design? Is it because they want your money and they know that you will forget to cancel the subscription? Or is it because they can't auto cancel your subscription after the free trial?
credit-card
credit-card
New contributor
New contributor
edited 2 hours ago
Bob Baerker
10.6k11540
10.6k11540
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asked 3 hours ago
Yami Odymel
1114
1114
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New contributor
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add a comment |Â
4 Answers
4
active
oldest
votes
up vote
6
down vote
accepted
Companies do it because they know you'll forget, and they get money as a result.
You're only getting the free trial due to the number of forgetful conversions they get as a result.
New contributor
I would use a virtual (one-time use) credit card number most major banks offer as an option. That way they can only hit you once for the auto-renewal
â Mark Stewart
3 hours ago
Oh.. okay. I thought it's due to the system structure design or some legal stuff.
â Yami Odymel
2 hours ago
2
"You're only getting the free trial due to the number of forgetful conversions they get as a result." Presumably it's also to get you hooked on their service. By adding the credit card requirement it's harder to spoof a bunch of free 1 month accounts.
â JMac
2 hours ago
add a comment |Â
up vote
2
down vote
In some cases it is a scam, they never intend to let you cancel your free subscription easily.
Do a Google search to review the cancellation comments about the company you are considering a free trial with.
While not true for all companies, you should always check first. Sometimes it is by intent, sometimes poor quality control, in all cases it is expensive.
Example https://productforums.google.com/forum/#!topic/play/lqULU7_dZsc
Consider: If the free subscription was sufficient for you to realize you can't live without it. They would not need you credit card for the free period, you would be calling them the day it ended, to get it reconnected.
1
That's a good point about companies making it difficult to cancel. I've heard of ones that will only let you cancel by phone or even snail-mail.
â Kevin
2 hours ago
add a comment |Â
up vote
1
down vote
Some people got charged after the free trial because they forgot to cancel the subscription. But... what's the purpose behind of this design?
So they can charge people after the free trial because they forgot to cancel the subscription.
add a comment |Â
up vote
1
down vote
Yes, these companies benefit from people forgetting to cancel. However, besides this, there is another reason why companies do this.
One of the obstacles that a business has to making a sale is the effort that is required of the customer. You can have the best product at the best price in the whole world, but if too much effort is required of the customer to make the purchase, it will be tough to make sales.
In order to subscribe, the customer needs to go find their credit card, enter in the numbers, address, etc. It takes some effort on the customer's part. When a new potential customer comes along and signs up for the free trial, they have to go through the process of signing up. If the free trial automatically cancels a subscription at the end of the trial, then in order to convert the potential customer into an actual customer, another customer action is required, which places a barrier toward conversion. Instead, businesses combine signing up for the trial and subscribing to the service all in one action. Now, it requires a customer action to cancel, meaning that there is a barrier in place to discourage the customer from leaving.
There are many people on the fence about whether or not to pay for a subscription. These people would perhaps decide it is not worth the effort to start a paid subscription, but if they have already gone through the process of the free trial, they instead decide it is not worth their effort to cancel.
add a comment |Â
4 Answers
4
active
oldest
votes
4 Answers
4
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
6
down vote
accepted
Companies do it because they know you'll forget, and they get money as a result.
You're only getting the free trial due to the number of forgetful conversions they get as a result.
New contributor
I would use a virtual (one-time use) credit card number most major banks offer as an option. That way they can only hit you once for the auto-renewal
â Mark Stewart
3 hours ago
Oh.. okay. I thought it's due to the system structure design or some legal stuff.
â Yami Odymel
2 hours ago
2
"You're only getting the free trial due to the number of forgetful conversions they get as a result." Presumably it's also to get you hooked on their service. By adding the credit card requirement it's harder to spoof a bunch of free 1 month accounts.
â JMac
2 hours ago
add a comment |Â
up vote
6
down vote
accepted
Companies do it because they know you'll forget, and they get money as a result.
You're only getting the free trial due to the number of forgetful conversions they get as a result.
New contributor
I would use a virtual (one-time use) credit card number most major banks offer as an option. That way they can only hit you once for the auto-renewal
â Mark Stewart
3 hours ago
Oh.. okay. I thought it's due to the system structure design or some legal stuff.
â Yami Odymel
2 hours ago
2
"You're only getting the free trial due to the number of forgetful conversions they get as a result." Presumably it's also to get you hooked on their service. By adding the credit card requirement it's harder to spoof a bunch of free 1 month accounts.
â JMac
2 hours ago
add a comment |Â
up vote
6
down vote
accepted
up vote
6
down vote
accepted
Companies do it because they know you'll forget, and they get money as a result.
You're only getting the free trial due to the number of forgetful conversions they get as a result.
New contributor
Companies do it because they know you'll forget, and they get money as a result.
You're only getting the free trial due to the number of forgetful conversions they get as a result.
New contributor
New contributor
answered 3 hours ago
Selkie
1762
1762
New contributor
New contributor
I would use a virtual (one-time use) credit card number most major banks offer as an option. That way they can only hit you once for the auto-renewal
â Mark Stewart
3 hours ago
Oh.. okay. I thought it's due to the system structure design or some legal stuff.
â Yami Odymel
2 hours ago
2
"You're only getting the free trial due to the number of forgetful conversions they get as a result." Presumably it's also to get you hooked on their service. By adding the credit card requirement it's harder to spoof a bunch of free 1 month accounts.
â JMac
2 hours ago
add a comment |Â
I would use a virtual (one-time use) credit card number most major banks offer as an option. That way they can only hit you once for the auto-renewal
â Mark Stewart
3 hours ago
Oh.. okay. I thought it's due to the system structure design or some legal stuff.
â Yami Odymel
2 hours ago
2
"You're only getting the free trial due to the number of forgetful conversions they get as a result." Presumably it's also to get you hooked on their service. By adding the credit card requirement it's harder to spoof a bunch of free 1 month accounts.
â JMac
2 hours ago
I would use a virtual (one-time use) credit card number most major banks offer as an option. That way they can only hit you once for the auto-renewal
â Mark Stewart
3 hours ago
I would use a virtual (one-time use) credit card number most major banks offer as an option. That way they can only hit you once for the auto-renewal
â Mark Stewart
3 hours ago
Oh.. okay. I thought it's due to the system structure design or some legal stuff.
â Yami Odymel
2 hours ago
Oh.. okay. I thought it's due to the system structure design or some legal stuff.
â Yami Odymel
2 hours ago
2
2
"You're only getting the free trial due to the number of forgetful conversions they get as a result." Presumably it's also to get you hooked on their service. By adding the credit card requirement it's harder to spoof a bunch of free 1 month accounts.
â JMac
2 hours ago
"You're only getting the free trial due to the number of forgetful conversions they get as a result." Presumably it's also to get you hooked on their service. By adding the credit card requirement it's harder to spoof a bunch of free 1 month accounts.
â JMac
2 hours ago
add a comment |Â
up vote
2
down vote
In some cases it is a scam, they never intend to let you cancel your free subscription easily.
Do a Google search to review the cancellation comments about the company you are considering a free trial with.
While not true for all companies, you should always check first. Sometimes it is by intent, sometimes poor quality control, in all cases it is expensive.
Example https://productforums.google.com/forum/#!topic/play/lqULU7_dZsc
Consider: If the free subscription was sufficient for you to realize you can't live without it. They would not need you credit card for the free period, you would be calling them the day it ended, to get it reconnected.
1
That's a good point about companies making it difficult to cancel. I've heard of ones that will only let you cancel by phone or even snail-mail.
â Kevin
2 hours ago
add a comment |Â
up vote
2
down vote
In some cases it is a scam, they never intend to let you cancel your free subscription easily.
Do a Google search to review the cancellation comments about the company you are considering a free trial with.
While not true for all companies, you should always check first. Sometimes it is by intent, sometimes poor quality control, in all cases it is expensive.
Example https://productforums.google.com/forum/#!topic/play/lqULU7_dZsc
Consider: If the free subscription was sufficient for you to realize you can't live without it. They would not need you credit card for the free period, you would be calling them the day it ended, to get it reconnected.
1
That's a good point about companies making it difficult to cancel. I've heard of ones that will only let you cancel by phone or even snail-mail.
â Kevin
2 hours ago
add a comment |Â
up vote
2
down vote
up vote
2
down vote
In some cases it is a scam, they never intend to let you cancel your free subscription easily.
Do a Google search to review the cancellation comments about the company you are considering a free trial with.
While not true for all companies, you should always check first. Sometimes it is by intent, sometimes poor quality control, in all cases it is expensive.
Example https://productforums.google.com/forum/#!topic/play/lqULU7_dZsc
Consider: If the free subscription was sufficient for you to realize you can't live without it. They would not need you credit card for the free period, you would be calling them the day it ended, to get it reconnected.
In some cases it is a scam, they never intend to let you cancel your free subscription easily.
Do a Google search to review the cancellation comments about the company you are considering a free trial with.
While not true for all companies, you should always check first. Sometimes it is by intent, sometimes poor quality control, in all cases it is expensive.
Example https://productforums.google.com/forum/#!topic/play/lqULU7_dZsc
Consider: If the free subscription was sufficient for you to realize you can't live without it. They would not need you credit card for the free period, you would be calling them the day it ended, to get it reconnected.
edited 2 hours ago
answered 3 hours ago
James Jenkins
1944
1944
1
That's a good point about companies making it difficult to cancel. I've heard of ones that will only let you cancel by phone or even snail-mail.
â Kevin
2 hours ago
add a comment |Â
1
That's a good point about companies making it difficult to cancel. I've heard of ones that will only let you cancel by phone or even snail-mail.
â Kevin
2 hours ago
1
1
That's a good point about companies making it difficult to cancel. I've heard of ones that will only let you cancel by phone or even snail-mail.
â Kevin
2 hours ago
That's a good point about companies making it difficult to cancel. I've heard of ones that will only let you cancel by phone or even snail-mail.
â Kevin
2 hours ago
add a comment |Â
up vote
1
down vote
Some people got charged after the free trial because they forgot to cancel the subscription. But... what's the purpose behind of this design?
So they can charge people after the free trial because they forgot to cancel the subscription.
add a comment |Â
up vote
1
down vote
Some people got charged after the free trial because they forgot to cancel the subscription. But... what's the purpose behind of this design?
So they can charge people after the free trial because they forgot to cancel the subscription.
add a comment |Â
up vote
1
down vote
up vote
1
down vote
Some people got charged after the free trial because they forgot to cancel the subscription. But... what's the purpose behind of this design?
So they can charge people after the free trial because they forgot to cancel the subscription.
Some people got charged after the free trial because they forgot to cancel the subscription. But... what's the purpose behind of this design?
So they can charge people after the free trial because they forgot to cancel the subscription.
answered 3 hours ago
Kevin
52358
52358
add a comment |Â
add a comment |Â
up vote
1
down vote
Yes, these companies benefit from people forgetting to cancel. However, besides this, there is another reason why companies do this.
One of the obstacles that a business has to making a sale is the effort that is required of the customer. You can have the best product at the best price in the whole world, but if too much effort is required of the customer to make the purchase, it will be tough to make sales.
In order to subscribe, the customer needs to go find their credit card, enter in the numbers, address, etc. It takes some effort on the customer's part. When a new potential customer comes along and signs up for the free trial, they have to go through the process of signing up. If the free trial automatically cancels a subscription at the end of the trial, then in order to convert the potential customer into an actual customer, another customer action is required, which places a barrier toward conversion. Instead, businesses combine signing up for the trial and subscribing to the service all in one action. Now, it requires a customer action to cancel, meaning that there is a barrier in place to discourage the customer from leaving.
There are many people on the fence about whether or not to pay for a subscription. These people would perhaps decide it is not worth the effort to start a paid subscription, but if they have already gone through the process of the free trial, they instead decide it is not worth their effort to cancel.
add a comment |Â
up vote
1
down vote
Yes, these companies benefit from people forgetting to cancel. However, besides this, there is another reason why companies do this.
One of the obstacles that a business has to making a sale is the effort that is required of the customer. You can have the best product at the best price in the whole world, but if too much effort is required of the customer to make the purchase, it will be tough to make sales.
In order to subscribe, the customer needs to go find their credit card, enter in the numbers, address, etc. It takes some effort on the customer's part. When a new potential customer comes along and signs up for the free trial, they have to go through the process of signing up. If the free trial automatically cancels a subscription at the end of the trial, then in order to convert the potential customer into an actual customer, another customer action is required, which places a barrier toward conversion. Instead, businesses combine signing up for the trial and subscribing to the service all in one action. Now, it requires a customer action to cancel, meaning that there is a barrier in place to discourage the customer from leaving.
There are many people on the fence about whether or not to pay for a subscription. These people would perhaps decide it is not worth the effort to start a paid subscription, but if they have already gone through the process of the free trial, they instead decide it is not worth their effort to cancel.
add a comment |Â
up vote
1
down vote
up vote
1
down vote
Yes, these companies benefit from people forgetting to cancel. However, besides this, there is another reason why companies do this.
One of the obstacles that a business has to making a sale is the effort that is required of the customer. You can have the best product at the best price in the whole world, but if too much effort is required of the customer to make the purchase, it will be tough to make sales.
In order to subscribe, the customer needs to go find their credit card, enter in the numbers, address, etc. It takes some effort on the customer's part. When a new potential customer comes along and signs up for the free trial, they have to go through the process of signing up. If the free trial automatically cancels a subscription at the end of the trial, then in order to convert the potential customer into an actual customer, another customer action is required, which places a barrier toward conversion. Instead, businesses combine signing up for the trial and subscribing to the service all in one action. Now, it requires a customer action to cancel, meaning that there is a barrier in place to discourage the customer from leaving.
There are many people on the fence about whether or not to pay for a subscription. These people would perhaps decide it is not worth the effort to start a paid subscription, but if they have already gone through the process of the free trial, they instead decide it is not worth their effort to cancel.
Yes, these companies benefit from people forgetting to cancel. However, besides this, there is another reason why companies do this.
One of the obstacles that a business has to making a sale is the effort that is required of the customer. You can have the best product at the best price in the whole world, but if too much effort is required of the customer to make the purchase, it will be tough to make sales.
In order to subscribe, the customer needs to go find their credit card, enter in the numbers, address, etc. It takes some effort on the customer's part. When a new potential customer comes along and signs up for the free trial, they have to go through the process of signing up. If the free trial automatically cancels a subscription at the end of the trial, then in order to convert the potential customer into an actual customer, another customer action is required, which places a barrier toward conversion. Instead, businesses combine signing up for the trial and subscribing to the service all in one action. Now, it requires a customer action to cancel, meaning that there is a barrier in place to discourage the customer from leaving.
There are many people on the fence about whether or not to pay for a subscription. These people would perhaps decide it is not worth the effort to start a paid subscription, but if they have already gone through the process of the free trial, they instead decide it is not worth their effort to cancel.
answered 2 hours ago
Ben Miller
72.8k18198262
72.8k18198262
add a comment |Â
add a comment |Â
Yami Odymel is a new contributor. Be nice, and check out our Code of Conduct.
Yami Odymel is a new contributor. Be nice, and check out our Code of Conduct.
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