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Contrary to pushing subscriptions on the first order, analysis at beverage brand Hint found the highest-LTV customers subscribed after their third purchase. Allowing customers to first sample the product range before committing leads to more informed subscribers and lower churn. Brands should test this delayed approach.

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For products with high trial churn, replace the standard "try before you buy" model. Instead, charge users upfront and offer a rebate or a free second month if they complete a key activation task. This creates commitment and incentivizes the exact behavior that leads to long-term retention.

Gray Matter gamifies its subscription by showing customers the exact free gifts they will unlock over their first six months (e.g., frother in month 1, canister in month 3). This roadmap creates anticipation and provides a tangible, long-term incentive to stay subscribed, boosting retention.

De Soi aggressively targets customers who have purchased more than once but haven't subscribed. By offering them a "sick deal," they make subscribing a no-brainer. This focus on a specific high-intent cohort was key to jumping from a 15% to over 40% subscriber rate on first purchases.

The company initially used a one-time payment plan, resulting in low customer lifetime value. Switching to a recurring subscription model, even for a product with natural churn, massively increased revenue and LTV by capturing more value over time from each customer.

Securing a subscription is not the final step. Users often forget what they paid for or can't find the premium features. To prevent churn, growth teams must implement a 'subscription activation' process that actively guides new subscribers to discover and experience the value they just purchased.

Reacting to churn is a losing battle. The secret is to identify the characteristics of your best customers—those who stay and are happy to pay. Then, channel all marketing and sales resources into acquiring more customers that fit this 'stayer' profile, effectively designing churn out of your funnel.

A significant one-time startup fee increases a customer's initial investment and creates a psychological barrier to leaving. This counterintuitive strategy can drastically reduce churn and increase lifetime value, as customers feel they have more to lose by canceling.

To combat high CACs, Palta increases LTV by offering entirely separate subscriptions for additive features, not just pricing tiers for the core product. For example, a body scanner subscription alongside a workout subscription. This strategy of upselling distinct value can increase total LTV by 20%.

CLTV isn't just a metric; it's a strategic map. Understanding purchase frequencies and the entire customer lifecycle should be the foundation for creative choices, promotional timing, and messaging. Many brands neglect this, but it's the key to balancing acquisition with profitable retention.

For supplements that take time to show effects, proactively mapping out a timeline of what users can expect to feel at 7, 30, and 90 days is crucial. This manages expectations, prevents premature churn, and ultimately increases customer lifetime value.

Delay Subscription Offers to Maximize LTV and Reduce Churn | RiffOn