The subscription economy is at a critical crossroads. By the end of the year, global subscription sales are expected to surpass $1.5 trillion, fueled by consumer demand for convenience and ongoing value. However, with market saturation, rising customer expectations, and evolving regulations, growth is no longer just about acquiring new subscribers — the spotlight is shifting toward retention as the key to long-term success.

Subscription businesses, once obsessed with growth-at-all-costs strategies, are rethinking their approach. How exactly? In partnership with Change Makers, we sat down with product and growth leaders at Amazon, Tesco, DAZN, The Economist, and more brands to discuss how to build fierce loyalty. 

Read the full report or keep reading to get the highlights.

Customers demand more, and they’re not afraid to leave 

Subscribers  hold  power like never before. They’re quick to unsubscribe if they don’t feel they’re receiving value, with subscription fatigue becoming commonplace. Additionally, legislative changes  make cancellations easier and lower barriers for churn.

Consumers are searching for more than just a product — they want flexibility, relevant experiences, and transparency. Any business that fails to deliver these will likely see cancellations spike.

Retention isn’t just about stopping churn; it’s about fostering lasting loyalty. According to our State of Subscriptions report, 20% of acquisitions are from returning customers and subscription pauses surged by 68% year-over-year. 

The data is clear: retaining customers over the long term is both less costly and more profitable than endless acquisition efforts. 

Resourceful retention strategies

To succeed in the retention-first era, businesses must adopt strategies that are proactive, data-driven, and tailored to individual subscriber needs. Let’s go one by one. 

Relying on data-driven retention 

Access to quality customer data is no longer optional — it’s key to grow. Platforms leveraging AI-driven analytics and tools can identify patterns in behavior, enabling businesses to:

  • Spot the "moments of truth" when customers experience the value of the service and its importance to them

  • Understand usage trends to drive personalisation, such as recommending add-ons or offering discounts at the right moments

  • Predict churn risks before they happen, enabling intervention with tailored offers

Companies already using advanced analytics tools report higher customer lifetime value (LTV) thanks to segmented targeting and geofencing, which localises content for specific markets.

Offering personalised and flexible retention cycles 

Retention strategies must move beyond standardisation. Consumers have different needs and churn triggers, which means personalisation can work wonders:

  • At-risk customers: For those who may be considering cancellation, strategise with retention offers like discounts or enhanced features

  • About-to-leave subscribers: Keep the relationship intact with pause options and reminders of unused features for disengaged customers

  • Returning customers: Extend loyalty rewards for past consumers who re-subscribe as a “welcome back” incentive

Examples like flexible pricing tiers or creating a custom plan to match user needs have proved to increase retention. 

Leveraging moments of truth 

The customer’s moment of truth comes when they realise the subscription they’re paying for is exactly what they need. This moment doesn’t happen by mere chance. Within the first month, businesses should:

  • Educate new subscribers on how to maximise product features

  • Curate introductory content, such as tutorials or free trials for premium options

  • Provide onboarding experiences that help customers extract immediate value

When businesses deliver these "aha" moments early, they cultivate long-term relationships by reinforcing trust and satisfaction.

Overcoming barriers to retention

Even with strategies in place, hurdles remain for subscription businesses to become fully retention-focused. These are the most common: 

1. Legacy technology and data

Modern businesses demand a robust infrastructure to eliminate silos and consolidate disparate data sources. However, many organisations still rely on outdated systems, limiting their ability to achieve personalised engagement at scale.

To make progress:

2. Identifying the right customer 

Not all customers are equally valuable. For instance, retaining customers who are only interested in short-term discounts or promotional bingers can drain resources with little payoff. 

Instead, merchants should:

  • Identify high-value subscribers based on metrics such as CLTV and purchasing frequency

  • Develop loyalty offerings that resonate specifically with their most engaged subscribers

  • Optimise acquisition strategies to attract subscribers that are more likely to stay

3. Reactive retention no longer cuts it 

Traditional retention often involved waiting until customers hit the point of churn before attempting to save them. By acting earlier in the customer lifecycle, businesses can:

  • Address dissatisfaction proactively through feedback loops

  • Improve touchpoints like billing or renewing subscription methods to reduce accidental churn

  • Educate consumers repeatedly during key lifecycle moments, reinforcing benefits to help them stay

  • Create better relationships by actively listening to consumer feedback and improving services

As Guy Meyers, Senior Director of Customer Success at Recurly, states: “You don’t want to be left waiting for them to say, ‘I'm going to cancel,’ and then give them a better deal. But instead be proactive, rewarding them for loyalty.”

Why retention is the future of subscription growth 

Thriving in today’s subscription landscape requires creating better customer experiences at every touchpoint — from signup to renewal to cancellation. Consumers expect frictionless transactions, flexible options, and added value.

Subscription businesses can grow their lifetime revenue and build competitive strength by adopting these technologies and best practices. Retention isn’t an isolated strategy; it directly impacts your product, marketing, and technology teams. When aligned correctly, these work together to maximise customer loyalty and satisfaction.

To lead in the subscription economy, businesses must focus on retention as their anchor point. Start by leveraging accurate data, implementing proactive strategies, and creating loyalty-driven experiences. 

Want to learn more? Keep reading our report or check out Subscription Sessions: Spring edition, an on-demand event packed with best practices and innovations to supercharge subscription growth.