The subscriber engagement lifecycle is crucial in today's competitive consumer subscription business landscape. Gartner says the customer experience “drives over two-thirds of customer loyalty, outperforming brand and price combined.” It encompasses the entire journey a customer undertakes from the moment they sign up for a subscription to the point of renewal or cancellation. Effective engagement strategies ensure subscribers remain active, happy, and loyal throughout their lifecycle.

What is the subscriber engagement lifecycle?

“Engagement lifecycle” is more than just a buzzword—it's a holistic approach to interacting with subscribers. It involves understanding their behaviors, needs, and preferences, and then delivering personalized communications and experiences at every touchpoint. 

Whether it's onboarding new subscribers, upselling existing ones, or re-engaging those at risk of churn, a well-crafted lifecycle engagement strategy ensures that each subscriber interaction is meaningful and adds value. This can lead to higher retention and increased subscriber lifetime value.

Why is the engagement lifecycle important?

In an era where competition is fierce, the engagement lifecycle helps consumer subscription businesses stand out. Engaged subscribers are not only more loyal but also more likely to refer others, creating a cycle of growth and retention. According to Gallup, “fully engaged customers represent a 23% premium in share of wallet, profitability, revenue and relationship growth over the average customer.” By proactively meeting subscriber needs, businesses can create a sense of community and trust, encouraging subscribers to stay longer and invest more in additional services or features. 

Engagement lifecycle in growth

From a growth lens, the subscriber engagement lifecycle means identifying and implementing tactics that not only attract new customers but also retain existing ones. Growth hinges on the ability to continually onboard new subscribers while minimizing churn. Engaged subscribers are more likely to remain loyal, reducing acquisition costs and increasing lifetime value. 

  • Attraction and acquisition: Growth teams focus on attracting new subscribers through targeted marketing campaigns, promotions, and other strategies. The initial acquisition is critical, but it’s only the first step in a longer journey that needs careful nurturing to ensure continued success.

  • Minimizing churn: Churn is the nemesis of subscription businesses. By implementing strategies such as personalized offers and timely support, growth teams can significantly minimize churn rates and encourage long-term subscriptions. According to our research, 65% of consumers would likely reconsider canceling a subscription if they can customize their plan to their needs, and 26% of consumers will stay subscribed for another four to six months if they are given what they want.

Engagement lifecycle in product

Product teams, on the other hand, focus on enhancing the subscriber experience at every touchpoint. They delve into understanding subscriber needs and preferences, using this data to refine product offerings and tailor services. Regular updates, personalized content, and responsive support are key components of the engagement lifecycle that keep subscribers happy and reduce the likelihood of cancellation.

  • Enhancing user experiences: Product teams are responsible for creating an intuitive, engaging, and valuable product experience. This involves ensuring that the product meets the evolving needs of subscribers.

  • Delivering personalized content: To keep subscribers engaged, product teams must deliver content and services that align with individual preferences. This might involve personalized recommendations, exclusive offers, or curated experiences that provide unique value to the user.

Benefits of a sustained engagement lifecycle 

Sustained engagement ensures consistent revenue streams and sets the foundation for scalable growth. It transforms one-time customers into loyal advocates, creating a symbiotic relationship where businesses thrive on satisfied users and users benefit from continual value.

  • Consistent revenue streams: Engaged subscribers provide a reliable revenue stream, allowing businesses to plan and grow more effectively. 

  • Increased lifetime value: Subscribers who are regularly engaged are more likely to remain loyal, leading to increased customer lifetime value.

  • Brand advocacy and organic growth: Satisfied subscribers are more likely to share their positive experiences with others, which can lead to organic growth, a better business reputation, and new customers without additional marketing costs.

Recurly and Redfast: The engagement lifecycle solution

The subscriber engagement lifecycle is the bedrock of a successful consumer subscription business. Investing in a robust engagement lifecycle strategy is pivotal for any subscription business looking to grow and retain its subscriber base. Recurly and Redfast have partnered together to create a lifecycle engagement tool for consumer subscription companies to drive proactive, personalized experiences that keep users engaged, happy, and loyal to your brand. 

By addressing churn, managing the subscriber lifecycle effectively, and optimizing acquisition efforts, you can take control of user journeys to ensure your subscribers get the most out of your product or service while maximizing revenue. 

Discover more about Recurly and Redfast.