Hi, everyone, and welcome.
We're so excited to present to you today the twenty twenty four state of subscriptions.
This is our favorite way to start the year here at Recurly.
We have some tremendous data from twenty twenty three, analyzing scriber benchmarks and insights, we know we all have some pretty big goals to meet this year, growing faster and more profitably.
And what we wanna start the conversation with is benchmarks. How do you understand how other folks are running their business? What great looks like? So you can put together a strategic plan to grow your business.
I'm Theresa McHenry. I am the CMO at curly, and I'm joined here by Melanie and Brian. I will let them introduce themselves.
Hi.
Thanks for having me. I'm Melanie Style. I'm Head of recurring payment strategy at optimized payments. Formerly, a recurring merchant where, my focus was to ensure that we never lost a subscriber due to payments failures.
Brian?
Hi, everyone. My name is Brian Geyer. I'm the VP of Business Intelligence. I work early.
Melanie, do you wanna tell us about optimized payments?
Sure. Optimize payments is a analytics and consulting firm. And our focus is really uncovering and unlocking the hidden value in electronic payments wherever they reside in the payments ecosystem.
And from a recurring standpoint, we've worked with more than seven hundred merchants over the past, twenty years, and, have help them gain significant revenue recovery and operational efficiencies.
Oh, great. And thank you so much for joining us today.
We're with we're recurly, and we are the subscription growth experts.
We really love to provide the partnership. So data like you see her today, as well as best practices to help merchants grow and the platform, of course, that enables this and has some really great capabilities to help optimize your growth and help you grow faster and more profitably. We work with thousands of companies and tens of millions of subscribers who are really excited to dig into the data, from those and share with you. So what are we gonna talk about today?
The twenty twenty three subscriptions and review, we're gonna dig into data around acquisition, retention, and payments. We've seen some noticeable trends, acquisition, if we look at overall macro conditions, we know that spending is down. Right? We know acquisition is more challenging.
The market is super competitive. So what are we seeing the trends there? What benchmarks do we see in the space? And how are people thinking about it?
What are we implementing to grow? We'll talk about that. Retention, churn rates are also down. Retention is hard.
Right? A lot of folks are getting rid of growth at all costs and really focusing on their core subscribers.
So how can you optimize your involuntary churn, make sure you don't have a leaky bucket. What does good look like there? And what strategies are people putting into place? To manage voluntary churn and enable overall subscriber growth and lifetime value.
Next, we're gonna unpack payments. This is The core foundation, right, to most of what we think about when you think about subscriptions and monetization, how are people paying, how do those payments work? So we're gonna talk about trends that we see there both in payment methods and approaches as well as some of the other opportunities we see here.
So we are going to dig in. First chapter, we're gonna talk about acquisition.
So how are subscribers responding? What are brands thinking about when they look at acquiring new customers out in market?
Overall, the median acquisition rate is at three point seven percent. You can see this trending down from twenty twenty where we were five point three percent. This isn't a huge surprise. We've seen budgets shrink significantly. Right? The market is rewarding Very different behavior from, how do you grow and how do we think about profitable and sustainable growth from a business.
To get definitional acquisition rate is really just it's the percentage of new subscribers you acquire versus your total subscriber base. So you can see that people are less acquisitive.
It's a success for gauging how people can effectively attract and acquire.
And we've as we mentioned, we've seen those steadily decline. So it's really interesting. You're gonna see a shift to retention that Brian's gonna talk about more. But overall, the market is slowing a little bit when you think about just trying to get net new subscribers in.
Part of this too, is due to the fact that a lot of merchants have grown a lot through COVID. So their subscriber base is bigger. And as they acquire customers, as a percentage, it's it's gone down slightly, but, that's another aspect of what's happening here too.
Yeah. And that's a great point. Right? We've definitely seen a lot of high, high, high paced, fast paced growth in this space. We are seeing a lot of maturation in some categories.
And we do anticipate that we're gonna start to see consolidation. So it'll be really interesting to see how these numbers start to shift, in the years to come.
The median, trial to paid conversion rate reached fifty percent in twenty twenty three. You can see that this is also declined pretty significantly since twenty twenty. As Brian mentioned, and we've talked about, we had some pretty heady growth in twenty twenty. So some of this is a little bit of normalization to pre COVID trends, but it's also an indication of just the maturation. We do hear things about fatigue.
We don't believe that that is happening. We still see subscription companies acquiring new customers. We see net new subscribers to the overall space.
So subscription fatigue is not happening. What you're seeing is a normalization as well as a shift and focus to that responsible growth. Right? How do we attract not just any subscriber, but people that we know are our best or next best subscribers.
So just some really interesting dynamics. I'm sure many of you are talking about the secure company and have shifted your strategy. But this is reflective of what is going on in the market overall.
We are seeing some challenges, when you think about free trial fraud, We're gonna talk about that in the payment section, but it's definitely impacting, free trial participation as well as free trial utilization.
We're seeing companies think a little bit differently about their strategy.
It's still super effective. Subscribers love free trials.
And the most effective trial to paid conversion rate we see is about seven days or less.
So what are our recommendations here? So broaden the appeal, right, present subscribers' choices One of the things we see working across all of our customers is this concept of personalization.
So we really see a driving demand for personalization in the offer. So what promotion are you using? We talked a little bit about free trial. It's still the number one for subscriptions. But we're seeing an appetite for more. And we see promotional efficacy differ based on generation or based on cohort. So really think and test your promotional strategy.
Obviously, packaging and pricing plays a huge role when we've seen many subscription companies introduce new tiers and new products as well as add ons to help with that personnel personalization and appeal.
Be flexible. Right? So we've seen the ability to acquire and, and the ability to offer flexibility translate into a higher acquisition and a higher consumer preference.
If you are very open and communicative with your driver about their ability to upgrade or downgrade or even pause their subscription, and you present as subscriber friendly That translates to a higher acquisition rate.
We also wanna think about incorporating multiple payment options So payment is a really important lever when you think about acquisition.
Over seventy percent of subscribers said that if they don't see their preferred payment method, they will actually abandon, checkout. So it's a really great opportunity to think about payments as part of the overall personalization.
We spoke a little bit about understanding personalization, but things like subscriber preferences, how do they wanna interact? What trends can we capitalize on? Personalization, both in acquisition, as well as in retention, we think about it very much from the offer layer, right, whether you're thinking about dynamic pricing, or whether you're thinking about cancellation flows within the subscription.
So that's that's it for acquisition. And we're gonna move on to retention. So I'm gonna pass it off to Brilliant.
Thanks, Theresa. I'll take us through the retention session next.
So first, looking at the overall transfer retention, we're seeing, turn rates to hold flat year over year in twenty twenty three versus twenty twenty two.
That's a little bit slightly misleading because I'll show you on the next slide how the industry trends are. And by industry, we actually saw pretty significant declines across the board, but it gets mass when you look at the overall and you look at the medium.
The median involuntary churn rate was one point o percent. So almost a quarter of churn in twenty twenty three was involuntary. And what that really highlights is the need to have a good recovered revenue strategy in place to prevent that involuntary churn and recapture that revenue.
A lot of companies focus a lot on voluntary churn, but there's some low hanging fruit perhaps with an involuntary churn, that could be addressed through a strong recovery revenue strategy. Because it is a significant, aspect of overall churn, especially in the DDC space.
Next slide.
So on this slide, like I said, on the last one, overall, we didn't see a lot of movement, but if you look by industry here, you can see pretty significant decreases, especially especially in the, direct to consumer space where acquisition is slowed.
The reason why acquisition tends to lead lower acquisition rates tend to lead into lower churn rates is because new customers tend to have the highest churn rates. And as you slow down, your acquisition of those new high churn customers, the overall for our company was tend to slow down as well too. So that's what we're seeing here. If you see look at digital media and entertainment, six point nine percent median churn rate versus eight point seven percent in last year.
So pretty significant decreases. Same thing in consumer goods and retail. Whereas come, industries like software were more flat in twenty twenty three. Excellent.
Like I said on the first retention side where it mentioned that the overall trends were flat.
Twenty five percent of churn was involuntary in twenty twenty three. And that highlights the need to have a good recovery revenue strategy in place. This slide shows the percent of at risk subscribers that were saved. So in twenty twenty three, We're clearly saved seventy two percent of at risk subscribers.
What that means is either, one of the account update services or retry logic or one of the other mechanisms by which we recover revenue, work to save the subscriber that would have otherwise potentially been at risk of churning. So it actually ticked up year over year, and a good chunk of that is due to, insufficient funds. We saw that specifically spike during twenty twenty three as consumer budgets were stretched.
But that's an area in which, advanced retry logic tends to work pretty well. And help lead to a increased year over year.
Thirty eight percent of a subscriber's total lifetime actually occurs after one of those recovery events So it's not like the customer is being saved for a single month in your recovering revenue. This recovered revenue will will last for several months down the road.
Because you're saving the lifetime of the subscriber after one of these events.
One of yeah. And one of my favorite stats here is at the bottom. Right? The It's extends the subscription by a hundred and forty one days, and I love this, right, because we're very focused on a good subscriber experience.
And I think if you kind of unpack involuntary churn, a lot of times that can be a pay a failed payment, excuse me, But, really, that's a pretty poor customer subscriber experience.
Right? So the fact if you can solve that, right, and Most of the time, we solve that without the subscriber ever knowing, right, it's very frictionless.
They stay on for another hundred and forty one days, and that's just It's fantastic, right, because it's creating a better brand and a better subscriber experience. It's really important to think about it, not just from an operations perspective and not just from a revenue perspective, super important, but also the halo effect of a good or bad subscriber experience.
Yeah. I could point Last slide here for retention, we this is a kind of a bolt on for retention, but We saw two point two billion dollars in incremental revenue from, personalization. What personalization means, there's a lot of different ways in which this is done, but through the addition of add ons for a a merchant subscription. So, that's a that gives the ability for our merchants to customize and really tailor their experience to individual customer cohorts, like Theresa said at the very beginning, We've seen this continue to grow over time, up over two hundred and seventy percent since twenty twenty. And over forty percent of our merchants are also personalizing through the use of pause functionality.
That really helps a lot of return because, a lot of times, a customer may have a specific life event that causes them to wanna just pause their subscription, but not give it up completely. So rather than forcing the customer to churn, and then have to remember to sign back up down the road. Pause allows them to, just temporarily pause their subscription and then automatically reengage with your product afterward.
And they can also help too if someone is, you know, coming upon financial hardships Right? But they love your product, they love your service, and they don't want to give it up. But just, you know, a big bill coming up, it can't quite afford. My subscription this month, but in three months, I'll be good. So it really enables a lot of personalization flexibility there.
Yep. Absolutely.
So retention recommendations, involuntary churn is preventable to some extent. Like I said at the beginning, twenty five percent of churn was involuntary in twenty twenty three, So you have to have the right tools, in place to make sure that you're recovering as much revenue and preventing involuntary churn as possible.
There's a lot of voluntary term strategies, like pause that we mentioned on the last slide, add ons too because you you can get your customers to engage with different aspects of your product more easily that way.
The same as descriptions report has a lot more detail into churn. You can use some of those benchmarks to analyze where you're at. And compare against your competitors to understand some areas of maybe improvement.
The last thing is pretty loyalty. And incentive programs through first discount and targeted promotions. That goes back to the customization part that Theresa mentioned. Doesn't just help you with acquisition. It can also help you with churn too, and creating an engaged customer.
Alright? Payments, the most important part.
Really, we've been talking about payments the whole time. Right? But so for this section, we're going to focus primarily on the payments instruments being used. And how the consumer behaviors and the trend in how they're paying can impact your business.
So looking at this, debit is around forty five and a half percent of overall transactions.
PayPal and credit combined to be just over half.
Interestingly from here, in the last few months of twenty twenty three and then continuing into twenty twenty four. What we're also seeing is that consumers are actually shifting more to credit, away from debit, which we're tying to lower, balances in your checking account. More and more consumers are living paycheck to paycheck. So the good news is if they shifted over to credit, it probably means they want to be able to continue that subscription without failure.
And they don't want it to hit up their debit account when they're not going to have any money in it. And also, what's interesting is this used to be very Pretty heavily price point focused. So around thirty dollars per transaction and higher were typically credit. Less than that were typically debit.
So if you were a merchant doing nine dollar transactions every month, you probably had around eighty, eighty five percent debit card usage.
And that switching, that dollar, variable is really more, like, fifteen to twenty dollars now. We'll be going over to credit just because, again, people don't have funds.
PayPal has always been large continuing that way. We're not seeing a huge amount of adoption on Amazon pay Apple Pay is ticking up a bit, but we'll talk about the performance on that in a minute.
On the renewal invoice, so not the first one, but as soon as you bill a subscriber, again, once they're already on file, the performance varies here by card type as well.
Debit card, the number of fifteen and a half percent decline rate does include prepaid as well. So when we're looking at things like free trials and consumers potentially intentionally gaming you. A lot of times what they'll do is use a payment method that they know will not be successful in the future because they don't want to commit to that, subscription, that relationship with you.
As Theresa mentioned, some of the flexibility and allowing consumers to do different things with their subscription, being very consumer friendly with your subscription will help put their mind at ease and help them be convinced to give you a payment method that will work better. So all of that marketing upfront you do to allow consumers cancel, it might seem counterintuitive, but it actually can help you in your conversion and then further in your retention.
Paypal approval rates are the highest when we're looking at the the total alternative payment method declined rate of five percent. That's including Apple Pay as well. Apple Pay actually has quite low performance typically, depending on your processor, you may be able to take advantage of Apple Pay's fairly new offering where they have decoupled their wallet from the device. But if you're not able to do do that, which most merchants today still are not able to do, what happens is as soon as the iPhone fifteen comes out, people get a Christmas present, you get a new phone and that wallet that you have on file is now dead. So Apple Pay has been notoriously bad for retention.
But pretty good on conversion. However, PayPal, we see lifting, in conversion and being solid on retention.
Froudly, looking at this, this is, looking at the decline response, the issuer responses that are fraud based. So excluding any sort of fraud tool you might have on your acquisition, this is once you've had a subscriber in your system, You go to authorize and you get a response back that indicates fraud to the account.
So roughly seventeen percent of, responses coming back for credit card or fraud, ten and a half percent on debit.
To some degree, the debit is lower than credit because the debit has a higher rate of insufficient funds and other types of declines in there. But this is for a couple of reasons, card not present in particular recurring. Have a very high instance of, invalid or, false declines. So we're seeing that happen here.
When Visa said two years ago, no longer do not honor, here are new declined codes. You can use suspected fraud and account closed. We saw a huge shift if she were still wanted to use that sort of generic catchall that they weren't quite sure about a standing of a card. And so we saw a big spike in suspected fraud, college, you were depending on your processor, how they code it, but those are actually highly recoverable. So this payment fraud rate, these declined rates, whether it's a fraud decline because it was lost or stolen, you can capture those with account updater depending on your timing, keeping those open and retrying those with a dunning cycle can actually be highly lucrative. So even though this number seems alarming, It's a combination of, false positives that also do get recovered and some other types of of declines that can be recovered through account updater.
We obviously see lower rates of this with PayPal for a number of reasons. One is that they have multiple funding sources attached to their wallet. So there's, you know, more opportunity for something to be successful. But then you've also, when you're doing a subscription on a wallet you've sort of given more of a hand off and a blessing, and then PayPal as the presenter looks a little more, trustworthy.
Different, industries kind of lend themselves to different or acceptance rates of alternative payment methods you know, as you can imagine, like, travel, hospitality, and entertainment, you're typically not going to check into a hotel and give them a PayPal account. Right? So there are some industries that are just kind of coming up on me ways of how they can leverage alternative payment methods, digital media and entertainment, obviously, is the highest here. And we see that not only from the vertical, but that vertical happens to be one that is largely global. So if you are a digital media company, your streaming service is probably being offered around the world.
If you're not doing local acquiring. If you don't have a local presence globally in order to take local payment methods, adding in a PayPal wallet actually allows you to accept the payment method that the consumer in that geographic region wishes to pay in because that's what's funding their PayPal account. But you're still only taking PayPal. So it's easier. It's a way to, especially, to go in and test different regions. You should see your, your conversion rate lift by quite a lot. We've seen anywhere from a five to twenty five percent boost in conversion rate when a wallet is added to the checkout process.
And usually high renewals on those as well. So definitely recommended, to explore at least add it, see how it works. If you wanted to test into adding a payment method that you don't have, you could target it by certain regions or by even certain offers. So if you think you might be having a a higher fraud rate on an account or doing more free trials or more aggressive trials, maybe that's where you kind of push your PayPal and See how it works for your business.
Yeah. That's really, really important because it's such low hanging fruit right now. I need to, like, add a new payment method and see an immediate conversion boost. There's so much effort spent to get just fractions of a percent of a conversion boost, but, adding PayPal is, easy win for a lot of merchants if it's not already there.
Yeah. It really is. And, it's not that boost is also not it's not cannibalizing. Right? It's not taking away from your Visa Mastercard people. It's actually Netlift. So substantial and meaningful to do that.
The recommendations that you can take from here, as you're building out your twenty twenty four and beyond plans Make sure you're raising a variety of payment methods, wallets, and also anyone who's going global whenever you can present and settle in local currency.
And offer local payment methods that's useful for conversion. It can have a a big impact on your overall performance.
Payment automation is a must, advanced retry logic, any kind of dunning that you can do because card types will behave differently. There are going to be some payment methods like a prepaid. If it's a, you know, a reloadable prepaid that's government issued, making sure you're hitting that card when the government pays out those benefits.
If it is a credit card or rewards card, there are lots of different types of behaviors.
By product being used by the consumer, and by decline reason. So understanding all of that and making sure you can have intelligent retry smart logic for all of that is critical to your performance.
Looking at your overall tech stack, scalability, integrations.
So your billing platform is critical, but also your processor on the back end is. So You can have the best billing system in the world, but if they're if you're using a a less subscription focused processor on the back end, you won't be able to take advantage of all of the benefits and services that the billing platform can offer. So just making sure that you have that capability also allowing for the consumer to have those sort of flexible changes they need to do to the pausing and upgrades, downgrades, add ons, all of that to their subscription is critical for performance.
And then on the regulations, making sure you're proactive here, I know many of us were kind of collective grown in the industry when Visa and Mastercard required pre bill notifications for free trials and low intro trials.
It seemed like it was going to be very odorous cause a lot of, voluntary term.
And at the end of the day, it did increase voluntary churn, so we had a lot more pre bill cancels coming in, but it really dramatically reduced chargebacks.
So the net effect to the subscriber base was roughly equal, but merchants saved money because chargebacks can be costly.
Processing them, managing them, responding to them, fighting them. And then, you know, just the effect you have on your account, if you're getting to charge back trouble, But overall, consumers were happier. It worked out well for merchants. So just to make sure at least every April in October, you're up to speed on the, card brand regulations.
That's great, Melanie. Thank you so much.
You're welcome.
And I'm gonna hand it over to Brian. We love benchmarks at Recurly. So we've got some exciting news. Brian's gonna share with you.
Yeah. So super exciting news. Some of the benchmarks that we've seen today are actually in the recurly app. As of January twenty third, So there's two metrics that we that we added on this initial launch renewal invoice paid rates and renewal invoice decline rates.
What those two metrics do is give you insights into your potential risk for involuntary churn. And these benchmarks specifically will rank you against your peers by industry. So you can see how you're performing in these two areas. We'll have more to come down the road, but these are live in the Recurly app. All our merchants have access to them.
And they can get insights into not just for their benchmarks and their performances at, but they can drill into individual components of each of these two metrics to understand what the drivers are and how they might make improvements.
So what will these benchmarks help merchants do? It's going to help like I said, allow you to compare against industry peers.
More importantly, though, what benchmarks can really allow a merchant to do is as they're making incremental improvements understand how that incremental improvement is impacting, your peers performance. You might see slight improvements in your metric, but it could make really big difference in and the overall ranking of where you stand against other merchants. So this will really help give insights for our merchants into incremental improvements, help them continually get better and better as they monitor their progress against peers.
And then the last one, I talked about the two metrics renewal invoice paid rates and renewal invoice decline rates. The two dashboards that these are a part of are renewal invoices and renewal declines.
There's some screenshots on the right side of this slide, what they look like. But like I said at the beginning, there's not just the ability to see your performance against peers. That's a top right chart where you can see three gray lines, which are the upper quartiles, the top seventy five percent, the bottom quartile, the the lower twenty five percent in the median. But the green line is your your percentile. So like I said, you'll be able to see your trends against peers.
And then the other screenshots of this, allow, you as a merchant to drill into individual components, understand, what are the drivers of these two metrics Again, it all layers up to churn, and there's gonna be more benchmarks released specifically related to churn in the coming months.
We're gonna have churn and acquisition rates. So if you're curious about your performance, like you saw in state of subscriptions and you're comparing there, you'll be able to do it live and app every single month with the recurring platform going forward.
So super exciting.
And I just I love this. Right? I mean, it really gives our customers kind of a leg up on how they can understand and optimize their growth. So thank you, Brian.
A lot of times you know, and you see your metric in isolation, but it's really hard to gauge your performance against peers. And state of subscriptions is is great for that, but this will allow us to help our merchants do that every single month.
So Give it live.
Yeah. And I, you know, it's it's always the great question with data is what does good look like and what is the context and what does it mean? So having these benchmarks at your fingertips is just so powerful to help, improve your business.
Well, great. So Thank you, Melanie. Thank you, Brian. We've walked through lots of data points. There is a very wonderfully meaty thirty two page report that everybody will be receiving.
With this, we have some trends and forecasts for twenty twenty four. I just wanted to stop for a minute and say, You know, we're here to help subscriptions our customers grow if there's data that isn't in those thirty two pages or that you're really curious about or you think can help you to improve your business, feel free to reach out to myself. Feel free to reach out to Brian.
We have decades of data, and we have billions of transactions that we can help slice and dice and really give you a better understanding of how you're performing and how you're performing against the market. So that's an open offer. Feel free to take take advantage of it.
So what do we think is gonna happen this year? We're already a couple of weeks in.
It's really gonna be the year of growth. Right? So we're gonna see a continued shift to retention. We talked a lot about this.
What does retention mean? Right? It is managing your involuntary churn. It's really thinking about voluntary churn.
But most importantly, it's thinking about how do you grow that lifetime value? How do you grow the relationship?
How do you continue to personalize the off we see this in bundles and add ons and different tiers, how do you really dig in and understand those subscribers who have committed to you are loyal to you do you continue to get more out of that? So we're gonna see some sophisticated toolkits rolling out. We're seeing this in a lot of industries. Loyalty rewards, more competitive pricing, discounts, plan flexibility, gifting.
Right? Really help to drive more profitable growth. They create longer, lasting subscriber relationships, which is, which is really what we're all here for. Right?
That's how we get LTV.
AI. Right? We can't have a twenty twenty four without a conversation about AI so we didn't check. No.
AI optimizes churn. Right? Melanie talked a little bit about this. Brian talked about it. When you think about all of the different payment methods, payment types, different geographies, different, levers within churn, really involuntary and management, it is ripe for AI and machine learning.
At Recurly, we have been doing this for quite a long time. It's a great learning model that you can apply ML and AI against to help to get really nuanced. Right? We talked about different hard types.
If you've got a government benefits card, you can anticipate when that will be funded. Right? They you you can really understand and optimize to a very specific level when and how you retry your payments to really optimize your success based on all of those different variables. So How do you do that?
Right? You need expertise, you need partners. Obviously, we think recurrently in optimized payments are some of the best, but looking at all of those data points and really getting those AI powered transaction models is gonna help improve your business. It's gonna help improve your revenue retention.
Ideally, it's really also gonna help you improve the subscriber relationship. Right? Nobody wants to show up to their subscription. And not be able to log in or have a payment failure. Right? That creates kind of a negative halo effect.
Automation enables scale, right, as the market gets bigger as subscriptions as a industry have grown Right? You really need more automation to scale. So companies, we talked about streaming companies global by nature, we're seeing this expansion and a lot of other markets. So a lot of companies are thinking about how they can better automate, and how they can get that ROI and really move away trying to build in house, to enabling, like, a best of breed approach that helps you really scale globally and do that without the risk and without the internal investment.
Increased regulations. Right? We talked a little bit about payments mandates, but we've seen a lot of this Right? Click to cancel. There's payment mandates. There's local regulations.
There's over twelve thousand US tax jurisdictions. Did you know that?
So there's a lot of different ways. Right? And if you are operating domestically or globally, staying on top of that complexity becomes very important. Subcriptions are a matured, industry.
So folks are starting to regulate against it. Right? And they're starting to think about how this, engages consumer privacy, consumer protection, all of those different organizations. You need to make sure that you're on top of that.
Many people choose to have a partner like Recurly to handle that, but it's very important to think about. We will continue to see increased regulation and compliance demands in this space.
Industry consolidation and bundling. So we talked a little bit about this, but subscribers aren't going anywhere. Actually, the appetite for subscriptions continues to grow, but what you're gonna see is a natural maturity curve in a lot of these spaces. So you will start to see consolidation in major industries.
A lot of them are already in the new cycle. But we anticipate that we're gonna see some consolidation from known providers, but we're also gonna see bundling, right, if if a consumer likes subscribe, and they like your box of the month, what else do they like? Right? What's their streaming preference?
How do you bill build some brand connectivity with strategies like bundling.
Excuse me. So we think that's really exciting, bundle your own product bundle with other brands, we think there's a lot, more to come to that. We've seen some big players like Disney do that right with all of their properties.
Expertise equals growth. It's a hard market out there. Right? You talk about the dynamics of, you know, we've got some consumer macroeconomic concerns. We've got the compliance challenges.
You've got competitive challenges. Right? It's tough to continue to grow and grow in a meaningful way. So make sure that you partner with people that can help see around the corner.
Right? Folks that really understand and have seen this before. They know the playbook. That becomes really important to accelerating your growth and making sure that you and your business.
Are in the position that you want it to be, as we start thinking about twenty twenty five.
So who's recurly? Right? We are the subscription growth experts. We really we like to help our our partners grow faster, smarter, and stronger.
We talked a lot about retention, churn management. It's one of the it's one of the things that we were just the absolute best at. So our customers see an eight point six percent revenue lift on their first year with Recurly. This is huge. Right? You can't grow on a quote unquote leaky bucket.
We've recovered one point two billion dollars for our merchants just last year. That's a lot of money. So we're excited to be handing that back to our partners on their bottom line. And it's a great ROI.
Right? So we're we're here to to make smart investments, as business people. And it's just a really great ROI. It's an easy business case.
For your business.
And it's great. Right? Growth is wonderful. We wanna see our subscribers grow. We wanna see our business grow. So it's just a really exciting time to be in the space. And hopefully these benchmarks and insights will be helpful.
For that, magical thirty two page, report with a lot more insights and data. You can access your copy here. Through the QR code, we will be following up. We've recorded this, and we will be sending it out, to everybody that registered.
So you'll get also a copy of this, as well as the report. So thank you for joining us. We will open up. We have chat available for any questions.
But we appreciate you taking the time and hope you have a great year.
