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Report

The 2025 State of Subscriptions

The future of retention and revenue growth

The subscription economy is at a pivotal moment. Acquisition rates are declining, and the focus has shifted toward retention-first strategies that drive long-term growth. Recurly’s 2025 State of Subscriptions report, based on data from 67 million subscribers and 2,200 merchants, offers key insights to help subscription businesses thrive in today’s competitive landscape.

Key Findings

Acquisition Decline Highlights Retention’s Importance

  • Acquisition rates have fallen from 4.1% in 2021 to 2.8% in 2024.

  • Return acquisitions now account for 20% of new subscribers, underscoring the value of retaining existing customers.

Flexibility Fuels Loyalty

  • Pause options surged 68% year-over-year, with over $200M generated from paused subscribers who later reactivated.

  • Hybrid plan structures, including monthly and annual options, are offered by 71% of merchants to cater to diverse needs.

Seamless Transactions Are Non-Negotiable

  • Fraud-related declines rose 29%, but merchants leveraging Alternative Payment Methods (APMs) experienced lower fraud rates (1.4%) while improving customer trust.

  • Payment flexibility is critical, with tools like Apple Pay seeing 269% year-over-year growth in adoption.

Loyalty Incentives Drive Retention

  • 70% of subscribers reconsider cancellation when presented with loyalty rewards or discounts, making them essential tools for engagement.

AI is Revolutionizing Retention

  • AI-driven insights enable better churn prediction, personalization, and automated recovery efforts, turning churn risks into growth opportunities.

Key Trends for 2025

  • Retention is the Cornerstone of Growth: Flexibility, loyalty programs, and personalized engagement are essential.

  • Fraud Prevention Through APMs: Advanced payment options reduce fraud while enhancing customer satisfaction.

  • Technology and AI as Growth Drivers: Automation and data integration are critical to overcoming subscription challenges.

Why Download This Report? Discover actionable insights to:

  • Strengthen subscriber retention through flexibility and personalization.

  • Leverage AI and technology to streamline operations and reduce churn.

  • Build sustainable, long-term revenue growth with retention-first strategies.

Stay Ahead in the Subscription Economy

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