Why Subscriptions Aren't About Retention (They're Not)
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About this listen
Most DTC brands waste time optimizing retention when they should be testing offers. Matthew Holman, who's worked with 150+ subscription brands doing up to nine figures in revenue, explains why the brands growing fastest aren't focused on churn—they're focused on acquisition. If your subscription program feels stuck at $1-2M in revenue, this conversation will show you exactly where to focus your energy.
Matthew Holman is the founder of Subscription Prescription and a subscription consultant who's helped brands add hundreds of thousands of subscribers. His clients include companies doing $10-15M per month in subscription revenue.
What You'll Learn:
→ Why subscriptions isn't a retention game (and what it actually is)
→ The two reasons people cancel subscriptions—only two
→ Key benchmarks: save rates, churn rates, and take rates that matter
→ Why improving take rate from 35% to 40% beats any retention optimization
→ How to calculate LTV so you know what you can afford to spend
If you're a DTC founder or operator at a $1-20M brand trying to scale subscriptions profitably, this episode gives you the strategic framework to stop spinning your wheels on low-impact retention tactics and start growing through smarter acquisition.
Connect with Matt:
https://x.com/mattlady
https://www.linkedin.com/in/mattlady/
The Performance Marketing Agency for eCommerce & DTC Brands: https://www.klientboost.com/
Connect with Matthew:
https://x.com/subscriptiondoc
https://www.linkedin.com/in/holman-matthew/
https://www.thesubscriptiondoc.com/
00:00 Why subscriptions aren't about retention (intro)
00:58 Biggest misconception: retention vs acquisition focus
02:25 Where to start when subscriptions feel neglected
04:30 Three critical touchpoints: onboarding, billing, cancellation data
05:30 Key metrics audit: what experts look at
07:00 Save rate benchmarks: 10-15% vs 20%+ elite performance
09:00 Monthly churn rates: what's good vs what's realistic
11:20 Understanding take rate and why it matters most
13:30 Testing offers: the acquisition side most brands ignore
15:47 Where to start: art and science of prioritizing
16:30 The math: 35% to 40% take rate vs reducing churn
18:36 Low lift, high impact framework for limited resources
19:10 Calculating LTV to know what you can afford to spend
20:03 Brand personality in subscriber communications
21:33 Episode wrap and next steps in the series