The shift to retention

In the subscription economy, the rules of growth are changing. Today, it’s no longer just about acquiring new subscribers — it’s about keeping the ones you already have.

Why? Because retention isn’t just cost-effective — it’s transformative. According to McKinsey & Company, compensating for the loss of a single customer can require the acquisition of three new ones. Meanwhile, some of the world’s leading growth companies derive 80% of their value creation from their core business — primarily by unlocking new revenue streams from existing customers.

Today, businesses must embrace this shift: from short-term acquisition tactics to building meaningful, long-term relationships with subscribers.

In fact, our 2025 State of Subscriptions data showed that acquisition rates have declined from 4.1% in 2021 to 2.8% in 2024 — signaling a continued focus on profitable growth. While still prioritizing cost-effective acquisition strategies, subscription businesses are doubling down on retention to improve subscriber engagement and long-term revenue.

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Retention isn’t just about preventing churn — it’s about building a subscriber experience so compelling that customers don’t just stay; they become your biggest advocates. Acquisition gets their attention, but retention earns their admiration. Loyal subscribers not only provide predictable revenue streams but also act as brand advocates, spreading the word and reducing your need for costly acquisition campaigns. They also spend more money over time, have an increased customer lifetime value (CLV), and are often more receptive to cross-sell and upsell opportunities.

So, how do you keep subscribers engaged for the long haul? It starts with rethinking the subscriber journey: creating meaningful engagement, adding flexibility, and removing friction. Every interaction should reinforce value and make it easy for subscribers to stay — not give them reasons to leave.

In the following chapters, we’ll explore actionable strategies to foster engagement, increase flexibility, and deliver frictionless experiences that keep subscribers coming back. Along the way, you’ll discover how Recurly’s expertise and innovative tools can help you turn subscribers into loyal fans, ensuring long-term growth and success. Let’s dive in.

sales@recurly.com

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