If you’ve been paying attention to the subscription economy, you’ve likely noticed a shift. Acquisition strategies are taking a backseat, and pricing personalisation has emerged as one of the most critical levers for subscriber retention and reducing churn.

In partnership with Change Makers, we sat down with product leaders from top brands like Amazon, Walmart, HelloFresh, Indeed, and many other brands, to discuss why personalisation in pricing is no longer a nice-to-have, but a driving factor in building sustainable subscription businesses.

💡 Keep reading this blog to get the key highlights or download the full report

Reimagining subscription models for a new era

Pricing models have evolved far beyond the one-size-fits-all approaches of the past. Initially, many businesses adopted flat-fee structures for simplicity, which worked well during the early days of the subscription boom. But, as inflation pressures household budgets and consumers gain more flexibility in their options, pricing strategy is now central to a subscriber’s experience.

Why pricing is more than an operational tool

Gone are the days when pricing was just about covering operational costs and generating margins. Smart pricing strategies today cater to customer needs and circumstances, ensuring relevance and value. 

According to Deloitte, 80% of consumers prioritise flexibility above every other feature — the main reason why  71% of subscription merchants now offer both monthly plans.

Adapting and testing new models

Brands like Spotlight Sports Group and Perlego have already pivoted. Spotlight Sports Group recently shifted to include multiple tiered packages after realising flat fees alienated some customers. Similarly, Perlego found success with experimentation by testing price points adjusted by perceived customer value, seeing improved retention as a result.

By integrating features like regional pricing, discounts for loyalty, and pausing options, businesses build a customer-focused approach and make subscriptions more resilient to the constant shifts in consumer behaviour.

From experimentation to execution

Of course, creating personalised pricing models isn’t something you can do overnight. It requires a culture of innovation and data-driven experimentation. But how do you go from testing to scaling these strategies successfully?

The power of A/B testing

Before scaling new pricing models, businesses should pilot them through rigorous A/B testing. For instance, test pricing changes in one region or for a specific demographic before broader rollout. Same for different plan tiers, discounts, or features.

One success story comes from Straiker, which piloted a pause option instead of a traditional cancellation. This simple adjustment resulted in an immediate improvement in retention rates.

Packaging options for personalisation

Pricing isn't just about the cost — it’s about the value proposition. More businesses are aligning packaging with pricing to cater to specific subscriber segments. 

For example, streaming services offer different tiers based on video quality and publishers provide basic plans for standard content and premium plans with exclusive newsletters or analysis features.

This modular approach ensures customers pay for exactly what aligns with their preferences and expectations.

Cross-functional collaboration

Creating personalised pricing models isn’t just the product team’s responsibility. True success requires collaboration across product, marketing, and finance teams. Finance evaluates associated risks, while marketing monitors the impact on customer acquisition and messaging.

At Walmart, an integrated approach ensures pricing strategies align with broader business goals. This holistic collaboration boosts confidence in testing new initiatives and driving them to execution.

What’s getting in the way

While pricing personalisation holds great potential for subscription success, several obstacles can slow progress. Here are the key challenges we’ve identified:

1. Data fragmentation

Challenge: Accurate data is the backbone of effective pricing strategies. Yet, many subscription businesses have fragmented or siloed data that is difficult to analyse. For instance, if customer payment behaviours aren’t integrated into one central system, testing new pricing models becomes speculative rather than evidence-based.

Solution: Invest in real-time, robust data aggregation tools that streamline and unify customer information across departments.

2. Confusion over ownership

Challenge: Pricing strategy often falls through the cracks because no single team owns it. Product has ideas, marketing handles messaging, and finance determines targets. This fragmented ownership leads to inconsistent decision-making and execution delays.

Solution: Establish pricing as a dedicated cross-functional priority, with clear decision-making responsibilities for everyone involved.

3. Outdated technology

Challenge: Legacy systems may lack the flexibility to support agile pricing experiments. They also limit a company’s ability to integrate tools like AI and machine learning that enable data analysis and predictive modelling.

Solution: Modernise your tech stack with tools designed for subscription management and flexible pricing models. This enables seamless integration of advanced AI analytics, enhancing your ability to optimise customer experiences.

Pricing strategy shapes subscription success

We’ve entered a new era of subscription management where pricing is not merely a functional decision, but a way to enhance subscriber experiences, reduce churn, and drive retention in meaningful ways.

  • Retention-first mindset: The State of Subscriptions report shows that acquisition rates have dropped from 4.1% to 2.8% since 2021 — retention is now the foundation of growth

  • Constructive experimentation: A/B testing, modular packaging, and loyalty-based pricing are paving the way for proactive pricing strategies crafted around customer needs

  • Cross-functional alignment drives smoother execution, significantly boosting outcomes

At Recurly, we’ve seen first-hand the power of these strategies to transform how brands approach subscribers. Businesses that adapt pricing to match their subscribers’ preferences benefit from reduced churn, higher satisfaction, and longer customer lifetime value.

Take control of your pricing strategy

Are you ready to transition your business into the subscription economy of 2025? Whether you're looking to test new flat-fee structures, experiment with tiered plans, or explore dynamic pricing, the time to act is now.

💡 Get all the insights and strategies in our report with Change Makers

Explore how Recurly's advanced analytics and subscription management tools can give your business the data-driven edge it needs. Sign up for a demo today and see first-hand how pricing personalisation fosters retention and sustainable growth.