Subscription businesses are reaching a tipping point. With market saturation rising and competition intensifying, retention is no longer an afterthought — it’s the main driver for growth. Yet, many companies are falling short. While the subscription economy continues to thrive, 61% of companies are still using outdated systems to tackle churn, leaving them ill-prepared to act proactively. 

In partnership with Change Makers, we sat down with 5 product and growth leaders from leading brands like AT&T, Comcast, and Persana to discuss how brands can adopt proactive strategies and build the foundational pillars to anticipate and prevent churn before it happens.

Check out the report for more insights or continue reading to get the highlights. 

Why retention is key in today’s subscription economy  

Nowadays, you can find a subscription for almost anything — curated food boxes, travel experiences, online learning services, and even electric vehicle charging. However, with more businesses wanting a piece of the pie, the competition is growing fiercer, and, in turn, customer loyalty is harder than ever to maintain. For subscription leaders, it’s no longer enough to simply acquire new customers — retention must be top-of-mind.

So what’s the key for businesses that want to get ahead? Differentiation. 

In today’s environment, the brands that stand out are those that can offer unique, customer-centric experiences that go beyond product innovation — think personalized subscriber experiences, alternative payment methods, and AI-driven analytics. 

However, today’s brands are struggling to not only acquire new customers but also retain existing ones. Faced with inflation and higher costs of living, many consumers are now cutting back on their subscriptions, only keeping the ones that offer the most value. 

Thus, brands must focus on the why behind subscriber churn — both voluntary and involuntary. By understanding why customers churn and addressing their pain points proactively, companies can unlock long-term growth opportunities.

The challenges of adopting a proactive retention strategy

Despite the clear benefits of a proactive approach, many organizations find themselves stuck in reactive mode. They often rely on tactics like discounts, free trials, and bundling services to convince customers to stay after they’ve already decided to cancel. While these efforts may work in some cases, they ultimately depend on putting out fires rather than preventing them in the first place.

On top of this “chasing tails” mentality, many subscription businesses face other barriers to proactivity:

  • Outdated technology: Legacy systems hinder companies from leveraging predictive analytics, automation, and AI — tools essential for anticipating churn risk.

  • Limited data visibility: Without real-time insights, brands rely on historical data that fails to capture shifting customer expectations.

  • Siloed teams: Misaligned operations across departments prevent companies from creating unified strategies that address churn holistically.

As Mary Rosberg, VP Growth Evangelist at Recurly, puts it, “When tech executives realize they have outdated back-end systems, simplifying the infrastructure is key to delivering a better customer experience and reducing churn.”

The solution? A proactive retention strategy built on tech

So, how can subscription businesses overcome these barriers and move toward a more proactive retention strategy? By adopting a forward-thinking strategy that’s powered by cutting-edge technology. In fact, “80% of respondents noted that they’re regularly investing in new tools and technologies to aid their churn strategy.”

Here’s how leading tech executives are making the switch to a proactive retention strategy:

  1. Leveraging data-driven insights: While tools like automation, AI, and analytics are essential for predicting churn, the fundamental building block is data. By leveraging data to track transactions and consumption patterns, businesses can detect early signs of dissatisfaction and intervene early with personalized offers or targeted outreach.

  2. A fit-for-purpose tech stack: One-size-fits-all solutions are a thing of the past. Today’s tech leaders are leveraging flexible, scalable tech stacks that can integrate real-time data tools, personalization features, and seamless payment systems. 

  3. Empowering customers with the right tools: Measures to reduce churn can be a two-way street. By offering self-service features, customizable subscription plans, and transparent communication, businesses can help subscribers feel more in control of their experience. 

Wrap up

Needless to say, churn prevention is no longer an option in today’s subscription economy. In order to not only attract but also retain customers, tech teams must take a forward-thinking approach, staying one step ahead of their customers at all times. By adopting a proactive mindset, leveraging cutting-edge technology, and empowering customers with the right tools, subscription businesses can unlock the key to sustainable growth and differentiation.

Ready to take the next step? Check out the full report to uncover actionable strategies and insights from top industry leaders.