10 Factors To Consider When Evaluating Consumer Subscriptions

Subscriptions are attractive because they are predictable, but not every product or service is a natural fit for subscription.

For most consumer subscriptions, cohort churn declines as the cohort ages. Month 1 may have a churn rate of 15%, with the rate dropping to 3% by month 12. Intuitively this makes sense: subscribers who find less value cancel early, leaving the service with more committed members over time.

Whether it’s SaaS as the preferred delivery method for software products, monthly subscriptions for music / video streaming, newspapers, newsletters, podcasts, or physical products, subscriptions are infiltrating nearly every business model.