How leading brands engage, convert, and retain subscribers
In a world where acquisition costs are rising and competition is fierce, the real winners are the brands that build experiences subscribers love. But how do they do it?
During our latest panel, experts Claudia Lohrey, Co-CEO & Founder of Prive (now Recurly Commerce), Dmitriy Yakubov, NA Head of Technology Partnerships at Adyen, and Matt Holman, Founder of Subscription Prescription, break down how top brands are rethinking the subscriber journey.
💡 Keep reading to get the key takeaways or watch the panel on-demand
Know your subscribers to boost their value
Understanding how subscribers use your product is the first step to keeping them around. “Subscriber LTV might be two, two and a half, maybe even three times the normal one-time purchase LTV,” Holman notes. That's a huge opportunity, but only if you can keep them engaged.
So, where do you start? It’s all about helping subscribers help themselves. By analyzing behavior, you can spot your most valuable customers and figure out what brings them the most value. Are they using a specific feature? Did they complete an onboarding flow?
Use that information to guide new users. Simple tools like personalized quizzes or tailored training programs can empower subscribers to find value on their own terms, making them far less likely to churn.
Make it personal — and profitable
70% of subscribers would reconsider canceling if discounts or rewards were offered. Today’s subscribers expect more than a one-size-fits-all experience. They want to feel like you get them.
Yakubov suggests using simple questions to guide subscribers to the right products. This is where "subscribe and save" evolves into "subscribe to get more." Go beyond the standard discount and think about exclusive perks. Loyalty programs, members-only content, and free shipping aren’t just nice-to-haves — they’re powerful tools for building a loyal community and driving revenue.
Navigating churn and retention challenges
Churn is the scary monster for every subscription business. With an average voluntary churn rate of 2.5% and involuntary of 0.9%, even small improvements can have a major impact on your bottom line.
The key is to understand why subscribers leave. Sometimes it’s a bad product experience, and it might be best to let that customer go quietly. But often, churn is preventable.
Involuntary churn — caused by failed payments — is a huge piece of the puzzle, but that doesn’t mean solving this problem has to be complex. With the right payment recovery strategy, brands can recoup a significant portion of failed transactions, turning a potential loss into a win.
For voluntary churn, you need to get creative. Cancellation win-back flows are an effective strategy. Offer a plan pause, a discount, or a switch to a different tier. Give subscribers a reason to stay, and you’ll be surprised how many do.
Experimenting with pricing and subscription models
The subscription landscape is always changing, and what worked last year might not work today. That’s why the most successful brands are always experimenting.
Don’t be afraid to A/B test everything — from your pricing structures and membership cadences to the user interface. Continuous testing is the best way to refine your offering, address customer pain points, and provide a simplified experience that reduces churn. Every test gives you valuable data on what your subscribers actually want, leading to higher conversion and retention.
Unify the journey for a frictionless experience
Imagine if your digital and physical subscriptions worked together perfectly. That’s the goal. By unifying the subscriber journey under a single platform, you can offer unique perks and a consistent experience everywhere.
This all comes back to a "digital-first" mindset. As Holman says, "If people on the product side adopted a little bit more of a digital-first mindset for how we're trying to onboard people and gather information, they'd be a lot more successful." It’s about obsessing over the details of the subscriber journey to create something truly great.
Where the subscription experience is heading
The future of subscriptions is all about hyper-personalization. Get ready for a major shift toward customized journeys that are unique to every single subscriber. Brands will move toward a hybrid approach, blending digital perks with physical experiences to create more value.
Think about direct communication channels like email, SMS, and in-app notifications. Giving subscribers more control over their plans through simple text messages can be a game-changer for satisfaction and retention.
Ultimately, AI-driven systems, deep personalization, and constant experimentation are here to stay. They're pushing the boundaries and challenging every brand to rethink what a great subscription experience can be.
To stay ahead in the subscription industry, integrating customer experience with operational excellence is key. Whether it’s through personalized perks, frictionless payment journeys, or innovative channels like the metaverse, brands have the power to drive growth by putting their subscribers first.
Are you ready to embrace the future of experiential subscriptions? Let the insights from our latest panel guide your next breakthrough.
Or book a demo to discover how Recurly can help you scale your business and keep customers coming back .
