Hey there!
It’s time for our fifth newsletter — featuring content, links, and insight from our community and team.
Last time, we talked about ChatGPT for subscription businesses. TL;DR — it’s got the potential to revolutionize how you approach your business strategy, particularly when it comes to marketing and doing research.
This time, we’re taking it back to basics. One of the main points we’ve always tried to hammer home is the fact that subscription business success goes hand in hand with maximizing customer lifetime value (CLV). The longer the relationship, the higher the lifetime value — which goes hand with the topic of this week’s newsletter: 🔁 customer retention strategies for subscription businesses.
Before we dive in — we just want to highlight that there’s still time to claim a spot for our free upcoming webinar on purchase journeys with Chris George, CEO of SubSummit, ****the subscription industry’s largest event dedicated to subscriptions, memberships and recurring revenue — plus a chance to win a free ticket (worth $999). Secure your spot here.
— Zaki Gulamani, Editor-in-Chief
“A subscription-first business expends most of its energy on delighting customers. Their customer retention strategies are as elaborate as their acquisition strategies.”
— Subbly’s subscription-first principles: Operational focus
Customers are cheaper to retain than to acquire.
Subscribers are signing up, but aren’t sticking around.
Spot the patterns and react accordingly.
It’s a lot like an investment account — compounding is key. The more time your churn rate continues to increase, the more potential revenue you’re losing out on.