When it comes to the world of subscriptions, the only constant is change. Emerging trends like personalization, AI-driven retention, and gamification all point toward the fact that the landscape is evolving. And the businesses that stand out are the ones that get ahead of what’s next — the next consumer expectations, the next cutting-edge technologies, and the next subscriber trends. 

Against this backdrop, Recurly and GoCardless sought to explore these topics more in depth. At our in-person event in San Francisco, Dinner Discussions: The Future of Subscriptions, we brought together industry leaders to dine and deliberate on the strategic significance of subscriptions and the trends shaping the future of the subscription economy. Through a series of interactive discussions, the event opened the floor for attendees to share their insights on emerging trends, innovative strategies, and the tools shaping the industry.

Here we’ll explore a few hot topics from the evening and why they matter for subscription businesses today.

Retention over acquisition

The evening discussions kicked off with one compelling question: "With companies increasingly prioritizing retention over acquisition, what’s the most impactful tactic your team has implemented to boost customer retention?"

While many of today’s businesses rely on acquisition strategies for growth, studies show that keeping your existing customers happy might just be the better route. Depending on what industry you’re in, acquiring a new customer can be anywhere from 5 to 25 times more expensive than retaining an existing one. And according to Recurly's State of Subscriptions report, retention-focused strategies can reduce churn rates by up to 18%, making them a crucial component of any successful subscription model. 

So how can subscription businesses focus on retaining customers? 

By optimizing every step of the customer journey, from onboarding to renewal. Whether you’re offering flexible plan options, more preferred payment methods, or pause functionality, every touch point is an opportunity for you to invest in your retention strategy and cultivate long-term relationships. Recurly tools like dunning campaigns, subscriber wallet, and our new lifecycle engagement tool can all support these efforts, helping businesses identify and retain high-value customers.

Personalization: What’s next?

According to Forbes, 81% of customers prefer buying from companies that offer a personalized experience. With this in mind, our attendees discussed the question, “How do you see personalization evolving in the future?" 

Every touch point in the subscriber journey is an opportunity for you to make the customer feel seen and valued. Whether it's through personalized emails, product offerings, or dynamic pricing models, businesses need to tailor their services to meet individual subscriber needs. 

But for companies looking to scale, maintaining that high level of personalization can be a challenge. However, by tapping into customer data, subscription businesses can continuously discover new ways to personalize and innovate. With Recurly, businesses can leverage reporting and analytics tools to gain action-ready insights and create more customized experiences, leading to higher customer satisfaction and reduced churn. 

Based on conversations from the event, it’s clear that what’s personalized today will be hyper-personalized tomorrow. For those who want to stay ahead of the curve, consider how you can give a personal touch to every stage of the subscriber journey — from content to real-time adjustments to proactive customer service. 

Combating churn with AI

These days, AI (artificial intelligence) is a household name. And when it comes to subscriptions, AI continues to be a hot topic, particularly its role in combating churn. 

Throughout the event, the group discussed how AI can enable merchants to take a more proactive approach to churn management — by predicting at-risk subscribers, spotting behavioral patterns, and offering personalized and proactive insights. 

With tools like Recurly Compass — a suite of AI-driven tools that reveals tailored insights to subscription businesses — you can swiftly identify and act on new growth opportunities. With conversational assistant capabilities, a focus on personalization, and accelerated business insights, Recurly Compass bridges the gap between technology and the evolving needs of subscribers. 

Sustainability as a growing value proposition

With 60% of subscribers preferring brands that align with their environmental values, it’s no surprise that sustainability was another major theme of the evening. 

Particularly in verticals like consumer goods and retail and travel and hospitality, sustainability is becoming a bigger initiative for many subscription businesses. Biodegradable packaging, carbon offsets, and circular business models are just a few of the ways that businesses are incorporating sustainable practices into their models. 

But the adoption of these practices is no longer just a trend — it’s a competitive advantage. With many of today’s customers (especially Gen Z) holding companies accountable to higher standards, sustainability has become an opportunity for brands to enhance brand loyalty and appeal to a broader audience.  

Overcoming globalization challenges

Expanding into new markets can help subscription businesses generate new revenue and broaden their reach — but globalization doesn’t come without its challenges.

During the event, our attendees discussed what expansion challenges they’ve encountered and how subscription brands are navigating these waters. Among the challenges mentioned were taxation, payment preferences, localization, and regulatory compliance.

So how do subscription businesses combat these challenges as they scale globally?

By localizing their business models to regional markets. This means adapting to local payment methods, currencies, and cultural preferences. In fact, our 2024 State of Subscriptions report found that 11.1% of merchants offered three or more currencies at checkout. 

With platforms like Recurly, merchants can offer localized pricing, support multiple languages, and accept a wide range of payment methods that are essential for attracting and retaining global subscribers. As your business grows and expands, focus on building flexibility into your subscription offering to meet the diverse needs of an international audience.

Wrap up

Our in-person event was more than just a chance to discuss the future — it was a reminder that the future of subscriptions is happening now. Whether it’s through improved retention strategies, AI-powered personalization, sustainable practices, or globalization, subscription businesses must stay agile and forward-thinking.

For Recurly, the key to thriving in the subscription economy is getting ahead of what’s next. With the right strategies and data-driven insights — combined with a leading subscription management platform — today’s businesses can anticipate future challenges and seize new opportunities, ensuring a path to long-term growth.