There are three huge myths that entice business leaders into launching a subscription model when it may not be the right business model for their objectives.

Myth number 1:  Faster growth

Growth does appear faster shortly after launching a subscription model. Revenue compounds as you accumulate subscribers. However, the business will plateau unless your team understands how to drive LTV with better onboarding for retention.

Myth number 2: Lower CAC

If anything, CAC is actually higher because consumers are often reluctant to cross the threshold when they know a commitment is involved. But, there’s the benefit of reselling to existing customers as long as you are able to get high retention rates with onboarding.

Myth number 3. Loyalty, Loyalty, Loyalty. 

It’s often expressed that customers prefer subscription to ownership. And, that makes them loyal to companies providing subscription offerings. Turns out, members are loyal to those who solve important problems. And, if you provided what you promised in the past, that’s not enough to guarantee perpetual renewals. Relationship focused onboarding is what creates loyalty, not the subscription offer.

The #1 solution to address these problems is a 7-day strategically designed email onboarding sequence, to increase retention for faster growth, have a shorter CAC payback period with more subscribers generating revenue, and a higher perceived value delivering that luxury experience that retains subscribers for life.

?? How I Fix Retention Problems:

Is improving retention a 2023 priority?

Subscription leaders often discover I can help them accelerate implementation within projects that include:

1. New Subscriber Retention/trial conversion rate – onboarding new subscribers to reduce churn within the first 30-90 days, which is highest churn period for most subscriptions.
2. Long-term retention – creating long-term engagement and annual renewal processes.
3. Cash flow forecasts for subscription businesses – often initiated by subscription business investors inviting management to have a conversation with me.
4. Accelerating subscriber acquistion – Shorten CAC Payback period by proper measurement and choreographing upgrades, upsells, cross sells.
5. Subscription team training – leading to a shared vision of the member experience and business model to deliver it.

If any of these projects resonate with you, hit reply to let me know more about what you’d like to implement within your subscription business.

About Robert Skrob

The problem with subscription membership programs is that members quit, I fix that problem. For more than 20-years I have specialized in direct response marketing for member recruitment, retention and ascension in diverse subscription members environments including non-profit associations, for-profit publishers/coaching, subscriptions and SAAS companies. For an evaluation of your current churn rate and how I can improve it, contact me here. I discover there are often two or three quick wins you can implement within a week to lower churn immediately, let’s talk about your quick wins.