Seizing opportunities: A CEO’s perspective on 2025 subscription trends

As I reflect on the subscription landscape, it’s clear to me that 2025 marks a significant turning point. The pace of change is relentless, but it’s also full of opportunity—if you know where to look. I’m excited to share some of the key takeaways from Recurly’s 2025 State of Subscriptions report, a resource that I believe will be a game-changer for many of us navigating this fast-evolving space.
I’ve spent the last year speaking to leaders across subscription businesses, as they’ve accelerated innovation and adapted to meet the next era of subscriber expectations. The first stand-out theme is this: retention is the new growth driver. It's no longer just a nice-to-have; a pursuit of subscriber lifetime value is essential for long-term growth and sustainability. While acquisition rates have slowed, those who double-down on loyalty are winning.

The power of retention: Why it matters more than ever
Over the past few years, we’ve seen the dynamics of the subscription economy shift. Acquisition rates dropped from 4.1% in 2021 to just 2.8% in 2024, which has been a wake-up call for many businesses. The power of the subscription model has always been rooted in long term relationships and this shift is a reminder that the first priority for growth is a retained and engaged subscriber base.Â
As much as new customers are important, today’s consumers expect a level of personalization and value that goes far beyond simply attracting them to your service. They want experiences that are frictionless, engaging, and ultimately worth their time and money.
I’ve always believed that building real relationships with subscribers is the key to long-term success. But in 2025, that’s more true than ever. Lifecycle engagement has become crucial. Subscriptions aren’t just products or services anymore; they’ve evolved to a full seamless, personalized journey that keeps customers coming back for more.
What’s working, what’s not, and what you can do about it
Looking through the data, there were a few insights that really stood out to me. First, the decline in free trial conversions—from 46% to 33%—tells us that the "spray and pray" approach doesn’t cut it anymore.Â
Free trials have always been a staple in the subscription model, but what the numbers suggest is this: it’s not about volume, it’s about quality. Subscribers want relevance. They want flexibility in how they pay and interact with your service. And most importantly, they want a value exchange that feels deeply personal.
Another piece of data I found fascinating was that 20% of acquisitions are now coming from returning subscribers. Offering a pause option instead of a hard cancellation is having a profound effect on retention. This insight hit home. We’ve seen firsthand how offering flexibility—and understanding the human side of subscriptions—creates deeper loyalty. Sometimes, life gets in the way, and letting a subscriber pause rather than cancel allows them to come back when they’re ready. That’s powerful.
Security: A growing concern (and opportunity)
One more trend I want to highlight, because it’s often underappreciated, is the growing importance of payment security. We saw a 29% rise in fraudulent activity, which is a massive concern for businesses and consumers alike. But there’s a silver lining: we also saw a 19% year-over-year rise in the adoption of alternative payment methods (APMs), which provide both enhanced security and a better customer experience. This, to me, reflects that the subscription model is maturing. As businesses, we need to stay ahead of the curve by offering secure, flexible payment options that make subscribers feel confident about their transactions.
Building a relationship, not just a customer base
If there’s one thing I’ve learned in my time of leading Recurly, it’s this: retention is built on relationships, not transactions. Successful subscription businesses today are those that focus on making each subscriber feel valued at every step of the journey. From a personalized experience to an ongoing conversation about what matters to them, these businesses are focused on the long game.
At Recurly, we’ve built our platform with this mindset. Whether it’s offering flexible payment options, leveraging AI for smarter subscriber analytics, or streamlining billing operations, our goal has always been to help businesses deliver exceptional, lasting experiences. Because let’s face it: without retention, your growth will be unsustainable.
Let’s talk about the future together
As we look toward the future, it’s clear that subscription businesses must evolve to thrive. The insights from our report are just the beginning, and I’m excited about what’s next. We’ve learned so much from these findings, but the conversation doesn’t stop here.
I’d love for you to join Mary Rosberg, VP Growth Evangelist, Brian Geier, VP Business Intelligence, and a few industry experts—including leaders from Chegg, Lucid Software, and Codecademy—on February 5 for a deeper dive into how businesses can leverage these insights to unlock their full growth potential. It’s a great opportunity to learn from others, share your thoughts, and figure out how your company can stay ahead of the curve in this subscription-first world.
If you're ready to take the next step, download the full report today and let's continue this conversation. Together, we can embrace the future of subscriptions, with all its challenges and opportunities.
