The rise of ecommerce subscriptions: what you need to know

One of the advantages often highlighted by the subscription model is the reduction in customer acquisition costs over the long term. In theory, when a customer subscribes in January, they remain active throughout the year, which means you don't have to convince them again every month. Less marketing effort, less advertising expenditure. At least, that's what the theory says.

But as this model becomes more widespread, its limitations are becoming more apparent. The unsubscription rate — or churn — is now one of the biggest challenges for subscription-based ecommerce businesses. Offering free trials, welcome offers or very attractive discounts may seem like an effective strategy for rapid growth. But if a significant proportion of customers leave at the end of the promotional period, the real value of this approach collapses. The challenge is not just to convert, but to build loyalty.

Investors are also becoming more vigilant. They know that a high churn rate means that acquisition costs are not generating sustainable added value. The most mature companies understand that it is not enough to attract a large number of customers quickly. You need to build a consistent experience that is aligned with expectations and maintain strong engagement over time. This requires a more realistic pricing policy, better targeted offers and attentive customer service that can enhance customer satisfaction.

As a result, some brands are scaling back overly aggressive promotions and revising their pricing strategy to attract a more stable customer base—loyal, committed customers who stay for months or even years.