Subscription marketing focuses on lifetime value over one-time purchases. Success requires optimising both acquisition and retention, as churn directly impacts profitability.

Subscription Business Models

View Subscription Types

Replenishment: Regular delivery of consumables (razors, vitamins, pet food)
Curation: Discovery boxes (beauty, snacks, books)
Access: Membership for content or services (streaming, software)
Hybrid: Combination models

Key Subscription Metrics

  • Monthly Recurring Revenue (MRR)
  • Customer Lifetime Value (LTV)
  • Customer Acquisition Cost (CAC)
  • Churn Rate (target below 5% monthly)
  • LTV:CAC Ratio (target 3:1 or higher)

Acquisition Tactics

  • Free trial or first box discount
  • Gift subscriptions
  • Referral programmes
  • Influencer unboxing and reviews
  • Content marketing and SEO

Reducing Churn

Onboarding emails, pause options instead of cancel, win-back campaigns, loyalty rewards, personalisation, and regular engagement all reduce churn. Understand why people leave.