Flexible subscription billing allows businesses to accommodate changing customer needs through options such as plan adjustments, temporary suspensions, and flexible cancellation policies. During the COVID-19 pandemic, Garmin introduced these options to help subscribers manage uncertainty, ultimately retaining most of its customers.
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How To Monetize During a Crisis
How Garmin Used Flexible Subscription Billing to Retain Customers
At MGI Research's Monetize 2021 Forum, Sarah Kramlich, Site Director at Garmin International, joined MGI Research analyst Igor Stenmark to discuss how Garmin adapted its subscription monetization strategy during the COVID-19 pandemic.
The conversation explores how Garmin expanded beyond traditional hardware sales to build ongoing customer relationships through subscription-based services. Following its acquisition of DeLorme in 2016, Garmin gained both the inReach satellite communication technology and subscription billing capabilities that supported the growth of its recurring service business.
When the pandemic created uncertainty for subscribers, Garmin introduced flexible subscription options, allowing customers to move to month-to-month plans, temporarily suspend service, or cancel without early termination penalties.
Implemented in less than a week, these changes helped Garmin retain most of its subscribers while strengthening customer loyalty.
Watch the discussion to learn how adaptable monetization technology, proactive communication, and customer-focused subscription management can help enterprises respond to changing market conditions.
Key Takeaways from the Garmin Monetization Case Study
- Transitioning from hardware to recurring revenue: How Garmin's acquisition of DeLorme helped expand its subscription services and establish ongoing customer relationships.
- Reducing customer churn through billing flexibility: How customers were offered temporary suspension, month-to-month subscriptions, and waived cancellation fees.
- Managing subscriptions across global sales channels: How Garmin balanced distributors, dealers, OEM partnerships, and direct customer relationships.
- Responding quickly to changing customer needs: How Garmin implemented changes to its subscription offerings in less than a week.
- Building customer loyalty through proactive support: Why communication and customer care were central to Garmin's retention strategy.
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Garmin - Billing and Monetization as Strategic Enabler
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FAQ
How can flexible subscription billing improve customer retention?
What are the benefits of transitioning from hardware sales to subscription-based services?
Subscription-based services enable businesses to establish ongoing customer relationships rather than relying exclusively on one-time purchases. Garmin's expansion into subscription services through its inReach satellite communication technology illustrates how companies can complement hardware revenue with recurring service offerings and continuous customer engagement.
How can companies reduce subscription churn during periods of economic uncertainty?
Businesses can reduce subscription churn by proactively communicating with customers, offering flexible payment and subscription options, and removing unnecessary barriers to maintaining service. Garmin demonstrated this approach by allowing customers to suspend subscriptions, switch to month-to-month plans, or cancel without early termination penalties during the pandemic.
How can businesses manage subscriptions across multiple sales channels?
Businesses operating through distributors, dealers, OEM partners, and direct sales channels need subscription management processes that support consistent customer experiences. Garmin manages hardware sales through multiple channels while maintaining direct relationships with most service subscribers, enabling centralized activation, plan management, invoicing, and customer communication.