The Leadership Letter

Real correspondence from the people running real companies — and what it reveals about leadership.

When Your Platform Partner Controls Your Churn Rate

The most dangerous contract clause isn't the price — it's the one that hands your retention mechanics to someone else.

On the impact of Google Play Billing (GPB) on Match Group's subscription business, Adrian Ong (Match) wrote to Google's Purnima Kochikar: "Retention I think is the real issue since the customer is having the same experience regardless of payment method. My hypothesis here is that GPB makes it much easier to cancel a subscription — which is positive from a customer experience perspective but clearly will have negative LTV impact across most, if not, all of our brands if this holds true across the board. Voluntary churn due to switching off renewal is significantly higher and renewal rates on credit card or iOS are anywhere from 100 to over 200% higher depending on the platform and product length. I've noted that on iOS there are more steps to turn off renewal including signing in with your password in order to manage anything payments related. Lastly, we then compute a 30% rev share on top of these numbers and we're looking at a world of pain." Kochikar had previously acknowledged the concerns, noting: "We discussed your feedback at length and we are taking the time to figure out how best to address. Nothing new to report at this time. We will keep you posted."

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Court Exhibit
In re Google Play Store Antitrust Litigation (Epic v. Google)
3:21-md-02981 (CAND), Doc. 888-85, filed 2023-12-21
June 19, 2018
Public domain
View the primary source →