A new era is dawning in the subscription industry. From our exclusive reporting and data found in our 2025 State of Subscriptions report, retention should be the #1 metric for every merchant this year.

Acquisition rates have been in steady decline since 2021, going from 4.1% to just 2.8% in 2024. This is due to a number of different factors, including but not limited to:

  • Increased competition in the subscription industry

  • No Covid-19 lockdowns and people are not staying at home in the same capacity

  • Subscribers are much more familiar with subscription services and understand they can cancel at any time

  • The upcoming shift for companies to comply with the click-to-cancel rule

  • Price increases for subscription services in general

  • Subscribers prioritize flexibility in services rather than sticking with one subscription

Retention: A long-term growth strategy 

Going forward, the new focus for subscription companies has to be building a retention strategy that prioritizes lasting relationships with subscribers. Building this doesn’t happen over night, but it does take some key strategies to keep subscribers for the long term. Successful retention methods will cement flexibility, personalization, and security as pillars of these new strategies. 

Flexibility: What subscribers actually want

Subscribers are looking for flexibility in their subscriptions services on a multitude of fronts—starting with payment options at their disposal, whether that be credit cards, debit, Paypal, or some other form of alternative payment method (APM). In fact, APMs such as Apple Pay usage jumped to 1.8% in 2024 from 0.6% in 2023. Currency options should also be on the table as well, as payment methods are processing more currencies than ever.

Currencies processed by payment method in 2024:

  • PayPal: 40

  • Apple Pay: 42

  • Google Pay: 42

  • Amazon Pay: 19

Flexibility includes letting subscribers pause their subscriptions. Recurly’s analysis showed a 68% increase in pause usage year over year, with digital media and entertainment seeing the largest rise at 330% in 2024. Subscribers value the option to pause and return later. Cancellation is no longer the end—nearly 1 in 5 acquisitions came from re-subscribers. Allowing pauses builds trust and encourages subscribers to return.

Subscribers want choice not only in payment but in price points and service tiers. Ad-supported digital media services are on the rise, and offering different levels of service at different pricing is only going to continue in both B2C and B2B markets.

Loyalty incentives: How to keep subscribers coming back

Did you know that 75% of consumers prefer mentions that provide rewards, and 58.7% value them as part of their shopping experience according to FinanceOnline. Subscribers will also reconsider canceling a service if there are rewards programs or loyalty programs built into the service. 70% of subscribers will reconsider a cancellation if given a loyalty discount. As the industry shifts towards retention, rewarding subscribers is no longer a treat, it is essential.

Loyalty isn’t just about incentives—it’s about building communities. Micro-communities are a great way to foster loyalty. These small groups can offer rewards, gather feedback on product features, and test new products. They also help create brand advocates who will share your message.

Create engagement loops: Make your platform a necessity 

Engagement loops are essentially features or incentives that keep subscribers coming back over and over. One of the best engagement loops for subscribers is personalization. Personalization can come in the form of: 

  • Content/products recommendations

  • Differing plan structures/bundling services

  • Win-back campaigns 

AI is also transforming the approach to personalization. It helps you analyze subscriber behavior, predict churn, and automate reengagement strategies with precision. More than that, AI can identify recurring issues and connect with subscribers on a deeper, more personal level. It’s not just technology—it’s your tool to build stronger, lasting relationships.

Want to learn more about why retention should be your top priority in 2025? You can read our 2025 State of Subscriptions report here. 

Behind the data: Join our State of Subscriptions webinar

Want to unlock the full story behind our State of Subscriptions data? Tune in on February 5, for an exclusive virtual webinar, 2025 State of Subscriptions: Behind the data, where we will dive even deeper into industry benchmarks, trends, and predictions across churn, retention, payments, and more. 

Mary Rosberg, VP Growth Evangelist and Brian Geier, VP of Business intelligence at Recurly—along with other industry experts from Chegg, Lucid Software, and Codecademy, will break down the report’s findings and share actionable insights to help you grow and retain subscribers.

What to expect:

  • A deeper analysis of acquisition, churn, and retention benchmarks.

  • Success stories and strategies from top subscription businesses.

  • A live Q&A to tackle any questions around your must-haves in 2025.

Save your spot today! Can’t join us live? Register anyway, and you’ll receive the recording straight to your inbox.