Best Practices For Subscription Service Launches

Want to know how to build a real subscription business? Don't start with subscriptions. Seriously, this is one of the toughest lessons we've had to learn. Here's our detailed 5-point framework for building sustainable retention revenue: 1. Prove unit economics first Some brands rush to subscriptions to 'fix' bad unit economics. That's backward. What we focus on: - Target 1.5X ROAS minimum on first purchase - Test different offer structures (30-50% off based on margins) - Validate bundle economics before subscription plays - Build cash reserves for proper testing Why? You need runway to test retention strategies properly. 2. Wait for reviews to validate Your early customers tell you everything about retention potential. What to watch: - Post-purchase survey responses - Time between discovery and purchase - Common objections and concerns - Natural reorder patterns Key finding: Almost half our customers know us for a month+ before buying. Use this data. 3. Launch new products strategically The goal is to get 2-3 purchases in the first 4 weeks. Our approach: - Launch best/premium variants first - Time releases to maintain purchase momentum - Create urgency with limited availability - Use each launch to reactivate existing customers Real example: Our Black Friday strategy wasn't about one big discount. It was about driving multiple purchases through strategic launches. 4. Calculate product-specific LTV Different products have different retention patterns. Track everything: - Reorder windows - Flavor preferences - Cross-category purchase behavior - Channel-specific retention rates Don't assume all products deserve a subscription model. 5. Model subscription scenarios only after you have: - Proven reorder patterns - Clear flavor preferences - Strong retention signals - Cash flow for proper testing The results? We grew from 100% to 400% year over year by mastering steps 1-5 before pushing subscriptions. The reality is subscription revenue is earned, not forced. Focus on making a product people want to reorder before optimizing how they reorder. Your subscription model is only as good as your retention data.

Ever wonder why some subscription brands grow 300% faster than others? I've been studying the brands crushing it in the subscription space, and want to share the last two standouts from my research (and how you can apply their strategies). The difference between 8% and 15% retention often means millions in additional revenue. Here's how the best make it happen: Ritual took vitamins - arguably the most commoditized supplement category - and built a wildly successful subscription business through radical transparency. They didn't just tell customers about quality - they showed exactly where each ingredient comes from. Their iconic yellow bottles turned a daily habit into a branded experience that people actually want on their counters. What I love about Ritual: → Their 5-day "settling in" period acknowledges habit formation challenges → Loyalty discounts that increase over time, rewarding long-term subscribers → Supply chain transparency that justifies premium pricing in a skeptical market Then there's Drink LMNT, who took the opposite approach of most brands. Instead of trying to appeal to everyone, they went all-in on specific dietary communities (keto, low-carb, fasting). Their rotating flavors maintain interest (genius for a daily supplement), while seasonal releases create natural purchase cycles throughout the year. LMNT's brilliant moves: → Hyper-focused on underserved communities rather than mass market → "Element Brigade" turns subscribers into advocates through rewards → Products that function as lifestyle signals within their communities What ties these successful subscription brands together? After studying dozens of 8 and 9-figure subscription businesses, I've found they all master these three fundamentals: → They understand exactly where their products fit naturally into customers' lives and consumption routines → They create genuine flexibility that matches how people actually use their products, not just what's convenient for shipping → They deliver value beyond convenience - through community, education, exclusivity, or experiences that transform transactions into relationships The brands that truly win don't just sell subscriptions – they create indispensable rituals that customers can't imagine living without. Your subscription strategy isn't just about predictable revenue (though that's a beautiful benefit). It's about deepening customer relationships in ways one-time purchases never can. #retentionstrategy #subscriptiongrowth

I've been quiet about this for months, but it's time to share. After 8 years running pure ecommerce brands, we've completely pivoted our business model: every product we launch now has subscription component. Not because subscriptions are trendy. But because economics are undeniable. Here's what happened when we added a $27/month subscription option to a beauty brand selling a one-time $59 product (with proper funnel in place too): -Customer Acquisition Cost remained identical -Average first-order value increased by 14% -Customer Lifetime Value jumped by 40% -Retention rate at 49% after 6 months The difference between struggling and thriving in ecommerce often comes down to unit economics. When your LTV is 1.5X your CAC, you're barely surviving. When your LTV is 4X your CPA, you can outspend any competitor. Subscriptions change the entire psychology of your marketing. When you sell one-time product or have sh*t funnel with sh*t upsells you need to convince customers to buy again and again. When you sell subscriptions you only need to convince them once. Then inertia works in your favor. Most brands approach subscriptions completely wrong. They treat them as a minor addition to their business, not a fundamental shift in their model. Our approach: We design products specifically to create ongoing value. Every new product must answer: "Why would someone continue using this month after month?" The first 14 days are also critical. We've built a 9-touch onboarding process that drives initial product usage and builds habit formation. We've built systems that track customer usage patterns and send timely reminders when they should be seeing results or need to reorder. Each subscriber receives exclusive content tied to subscription journey - improving results and creating deeper brand connection. Before each renewal, customers receive a preview of what's coming next and how it builds on their current results. Results: Our retention rates are now 2.7X industry average, and our CAC payback period decreased from 62 days to 32 days. Successful DTC brands of the next decade won't be selling products. They'll be selling ongoing transformations, delivered through physical products. If you're still focused solely on one-time purchases, you're building a business model that's increasingly difficult to sustain. The shift isn't easy. But it's necessary. And not making shift is harder in the long run.