When it comes to growing a subscription program, there are two key variables to optimize:
Take rate (the percentage of customers who start on subscriptions)
Churn (how many cancel their subscriptions)
Your take rate is often the most important lever for driving subscription growth.
Across the brands we work with, 60–80% of subscribers start on their very first order—not later. That means the majority of your future LTV is created upfront.
We’ve discussed how to improve your take rate before, so in today’s newsletter, we will focus on how to reduce churn.
Reducing Churn — How We Diagnose and Improve Retention
Once customers are in the system, churn becomes the constraint.
But instead of treating churn as a single metric, we break it down to understand where and why retention breaks.
We usually start with overall churn trends to identify volatility or shifts over time. This gives us a directional sense of whether the system is improving or degrading.
From there, cohort-based analysis shows us when customers are dropping off. Early churn typically points to onboarding or expectation mismatch. Later churn is more often tied to product fatigue, pricing, or cadence issues.

Product-level churn adds another layer. In most cases, a small number of products disproportionately drive retention outcomes—either positively or negatively. Fixing those often has more impact than broad retention initiatives.

We also look at retention through the lens of billing cycles.
Rebill 1 reflects the initial experience.
Rebills 2–3 are where habits form.
Beyond that, you’re measuring sustained value.
A sharp drop at a specific rebill is usually easier to act on than a blended churn rate.

Finally, we look at lifetime distribution—not just averages. A long tail of loyal customers can mask a weak core if most subscribers churn early.
Where Retention Actually Improves
Once the failure points are clear, the interventions tend to be straightforward.
Most meaningful gains come from focusing on the early lifecycle, where churn is highest.
This is where we see tactics like:
Free gifts on the 2nd or 3rd order
Early milestone-based incentives
Reinforcing value during rebill reminders
The key is that these additions feel intentional.
Cheap or irrelevant incentives can do more harm than good. But something that reinforces the product experience—like a useful add-on or a well-placed sample—can improve both retention and engagement.
Over time, the goal is to make the subscription feel like something that improves the longer a customer stays—not just something they’re billed for.
Next Steps
If you own or operate an e-commerce brand generating at least $5,000,000 in annual revenue, feel free to book a call with me to discuss how we can improve your ad creatives, landing pages, and retention marketing strategy.
