How do you ensure your business not only survives but thrives in this increasingly competitive market? This was the pressing topic tackled at our recent event in New York, What’s Next Series: Future-proofing subscription businesses. 

Bringing together experts from Worldpay, Alaska Airlines, The Arena Group, Fi, and Recurly, this panel shared invaluable insights into subscription retention strategies — emphasizing a critical message for businesses: retention isn’t just preventing churn; it’s keeping subscribers engaged, delighted, and loyal over the long run.  Let’s recap the key learnings and actionable strategies we discussed. 

Want to join us next time? Check out our upcoming dinners, panels, and virtual events here. 

 The evolving subscriber lifecycle 

The subscription landscape faces a new challenge where consumers feel overwhelmed by the sheer number of services available: subscription fatigue. To combat this, retention should be an integral part of the customer lifecycle.

Here are some ideas:

  • Engage early: Implement welcome campaigns within the first 30 days. The Arena Group, for example, saw a 25–30% improvement in trial-to-paid conversion rates after launching their email onboarding series. 

  • Address low engagement: If a subscriber doesn’t use your product, they won’t see its value. Personalized check-ins, tutorials, and loyalty incentives can help nudge behavior and build trust. 

  • Leverage data: Look beyond acquisition metrics and focus on churn indicators, including engagement levels and payment failures, to spot potential risks quickly. 

From the early stages of onboarding to ongoing renewal, brands must consistently deliver value. Check out these high-impact tips for 5x subscription growth to get a proven playbook.

Combatting churn with proactive strategies 

It’s true: cancellation isn’t goodbye. According to our State of Subscriptions report, 20% of acquisitions are from returning subscribers, and over $200M was generated from consumers who re-activated after pausing.

While churn is inevitable,  proactive measures can significantly reduce its impact. Here are the strategies that work: 

  • Combat payment failures: Intelligent retry technology uses AI and millions of data points to predict when a transaction is more likely to succeed — helping you recover more revenue. 

  • Smart dunning campaigns: Automated, customized dunning campaigns deliver unique email content that invites users to update their billing info — giving you an extra 12% revenue lift.

  • Build value triggers: 48% of subscribers prefer email as their preferred communication channel. Make sure you remind subscribers why they signed up and keep them engaged. 

By combining these strategies, you not only minimize churn but also foster long-term relationships. Proactively addressing pain points, providing ongoing value, and staying in touch with subscribers are key to creating an enjoyable experience.

Driving loyalty through personalization and community

Generic experiences no longer cut it for modern subscribers. Today’s customers want uniquely tailored services and a sense of belonging. 

  • Enabling personalization: Keep an eye on analytics, such as purchase behavior or content preferences. For instance, Alaska Airlines personalizes their subscriber communications, driving engagement by suggesting flights or upgrades based on past trips. 

  • Building communities: Communities foster deep emotional ties between brands and subscribers. The Arena Group, for example, cultivated smaller, niche forums within their subscription service, where readers interact with financial experts. 

Being part of something — that’s the new formula for loyalty. Beyond products, brands must build memorable experiences that subscribers will talk about and share. 

Fighting fraud without friction 

Subscription businesses must strike the balance between tightening fraud safeguards and maintaining a seamless user experience. Here’s what you can do:

  • Prevent fraudulent transactions: Card-testing schemes are common. Worldpay’s FraudSight solution protects your businesses by detecting and reducing fraudulent activity by 30%. 

  • Keeping it frictionless: Introducing tools like CAPTCHA or biometric authentication can help reduce fraud without driving users away from checkout pages. 

  • Using AI for fraud mitigation: Subscription businesses are increasingly using machine learning to identify patterns and flag suspicious behaviors in real-time. 

A multi-layered approach to fraud prevention effectively safeguards your revenue while maintaining a smooth customer experience. Combining advanced technologies like AI, biometric authentication, and real-time monitoring ensures that businesses stay one step ahead of fraudulent activity.

What’s next in retention?

As competition increases and market expectations shift, subscription businesses must adapt to stay ahead. Here are the key trends shaping the future of subscription models, helping businesses retain customers and drive growth.

  • AI-driven personalization: Hyper-personalization will continue to dominate the space. Tools powered by AI will help predict churn risks by analyzing decreasing engagement levels, triggering re-engagement campaigns automatically. 

  • Sustainability as a loyalty driver: Today’s subscribers prioritize ethical business practices. Companies offering transparency in pricing policies and easy cancellation options can distinguish themselves in a competitive market. 

  • Hybrid models for flexibility: Offering pause options, tiered pricing, and other customizations will remain essential, as evidenced by the 68% year-over-year increase in subscription pauses in 2024. Consumers want — and expect — flexible solutions to keep businesses accountable for their needs. 

  • Gamified experiences: Challenges, streaks, or rewards built into subscription products can keep users engaged. Interactive experiences enhance retention while promoting frequent product usage. 

The subscription landscape keeps growing and evolving, driven by consumer demands for flexibility and engagement. By responding to these shifting expectations, companies can foster loyalty, encourage long-term retention, and drive sustainable growth.

 Thanks for joining and see you next time!

We want to thank all attendees and our partner Worldpay for making this panel a success. Our What’s Next Series continues to bring together industry leaders and innovators to share insights on the future of subscriptions. 

If you’re as excited as we are about building future-ready subscription businesses, don’t miss upcoming events in the series. Keep growing, keep learning, and remember: retention is the growth engine for subscription success. 

Find an event near you or sign up for our upcoming webinars here.