The path to profitability—and how to achieve it

On November 19, we gathered at Soho House London alongside the brightest minds in the industry for an exclusive dinner hosted in partnership with Avalara and Worldpay. Dinner Discussions: The path to profitability inspired insightful conversations about the strategies, challenges, and innovations shaping the future of the subscription economy.

After an ice break session—where we discovered everyone’s guilty pleasure subscription— the conversation revolved around a critical question every business is asking: How can you achieve sustainable profitability in a highly competitive market?

Let’s explore this and more burning questions we chatted about over dinner.

Is retention the new acquisition?

With acquisition costs on the rise and subscribers becoming more discerning, retention has become the top priority for many companies. From loyalty programs to personalized experiences, the attendees shared how they are building relationships for the long term.

Investing in strategies like loyalty rewards, predictive churn analysis, and proactive subscriber outreach don’t just reduce churn—they cultivate lasting customer relationships.

Looking for more retention tips? Check out this panel with Alaska Airlines and The Guardian about the importance of fostering community and user engagement.

What’s the role of personalization in subscriptions?

According to our research, 74% of consumers rank the ability to personalize as the top reason for subscribing to a new service. The expectation for personalized experiences is no longer a trend—it’s an industry standard.

Personalization has shifted beyond name recognition in emails to more sophisticated techniques that delve deep into consumer preferences and behaviors.

By analyzing user data, you can anticipate customer needs and deliver content or services that resonate on a personal level, enhancing the overall experience. Attendees explored opportunities that technologies like machine learning present when crafting bespoke customer journeys.

What’s the role of AI in churn management?

Artificial intelligence is transforming retention. AI offers powerful tools to predict and prevent churn by identifying at-risk customers, personalizing engagement strategies, and optimizing retention efforts.

By analyzing customer data—such as usage patterns, engagement frequency, and payment history—AI models can predict which subscribers are most likely to cancel their membership.

Did you know Recurly Compass helps you boost engagement and combat churn? Our suite of AI-driven tools will deliver personalized, proactive insights, empowering your team to swiftly identify and act on new growth opportunities. Check it out now.

How can you prepare for global expansion?

Global expansion represents a significant opportunity for subscription businesses, offering access to new markets, larger customer bases, and increased revenue. However, expanding into new markets brings new challenges for organizations, such as taxation, payment preferences, and regulatory compliance.

Working with a subscription management platform, like Recurly, allows you to localize pricing, support multiple languages, and process a wide variety of payment alternatives that are key to attract and retain global consumers.

The future is promising—get ahead of what’s next!

This private dinner lit the path for success, sharing key trends and strategies shaping the future of subscriptions. From AI-powered retention to personalized customer touchpoints, these takeaways can help you refine your model and drive profitability.

But there’s so much more to uncover. Our 2025 State of Subscriptions report is launching in January. It’s packed with benchmarks and actionable tips to refine acquisition, reduce churn, and boost growth heading into the next year.