If You Cancel, Do Your 'Benefits' Collapse? Long-Term Customers Lose Out [Heotdari Economy]

(17) 'Discount Coupons' Sent When Canceling
"They Gave Me a Coupon When I Applied for Cancellation"
Is Long-Term Subscription Really the Answer?

Editor's NoteMany people thought they were engaging in smart economic activities to get better deals, but it often turned out to be a misstep. When consumers are deceived by corporate marketing or blinded by momentary gains and make wrong decisions, they end up being the ones who suffer. We aim to examine economic activities where people misjudge everyday situations and make costly mistakes.

Song Taeyoon (38), who had been using the online education program Class101 by paying an annual subscription fee, decided to cancel his subscription. He judged that he no longer needed the service. However, upon cancellation, he received a message saying "You cannot receive benefits if you cancel now," along with a discount coupon. Surprised by the unexpected coupon, he considered continuing the subscription but ultimately chose to cancel. Since that day, discount coupons have been sent to him via messenger every few days. Song said, "I subscribed for several years at over 200,000 won, but after canceling, they gave me coupons. I regretted not canceling and then re-registering as a new subscriber, which might have been cheaper since it wasn’t an automatic renewal."

Is Long-Term Use Really Cheaper?

Calculating the costs for 3-month and 1-year contracts shows that long-term subscriptions are cheaper. For the online education platform Class101, the cost is 249,000 won for a 1-year subscription (17% discount) and 599,000 won for a 3-year subscription (33% discount). The music streaming app FLO charges 8,000 won per month and 81,600 won per year (15% discount). The OTT service Wavve charges 10,900 won per month and 109,000 won per year (16% discount). Because prices often become cheaper with longer subscriptions, consumers tend to opt for "long-term passes."

However, long-term use is not always cheaper. When subscribers express their intention to cancel after long-term use, they often receive coupons offering "greater benefits." This is because companies actively try to retain customers who want to cancel.

The annual Class101 subscription, originally 249,000 won, can be reduced to 179,000 won by applying a 40% discount coupon received upon cancellation request. Various types of coupons, such as 1+1 time-limited deals and secret discounts, flood in. These benefits are not available to consumers who subscribe long-term through automatic payment systems.

Class101 Coupon

4-Hour Limited Deals, Time-Limited Discounts, and a Flood of Coupons

Coupang Wow Membership also offers a "2 months free benefit and keep membership" coupon upon cancellation request. This allows users to enjoy services like free shipping on Rocket products and Coupang Play viewing for two months without monthly fees. The design platform Miricanvas also offers additional discount coupons when cancellation is requested. The coupon provides a 33% discount for three months, reducing the monthly fee from 14,900 won to 9,900 won.

The OTT service Wavve grants 10,000 coins to customers who delay cancellation. These 10,000 coins can be used for 32 days from the date of issuance. However, there are restrictions on how the coins can be used. Additionally, the amount and duration of benefits vary depending on individual conditions such as service usage period.

Professor Kim Siwol of Konkuk University’s Department of Consumer Studies explained, "Many companies offering subscription services distribute discount coupons when long-term customers try to leave. It is a marketing strategy that creates addictive consumption and makes cancellation difficult." He added, "Instead of giving discount coupons when customers request cancellation, it is more important to provide better services so that consumers do not decide to leave in the first place," advising, "Consumer-centered systems need to be established."