Latest / The Retention Marketing Podcast with Fexingo: Email, SMS, and Loyalty for Repeat Customers
How Subscription Brands Reduce Churn Without Discounts
Lucas and Luna dig into a counterintuitive retention strategy: subscription brands that reduce churn by removing discounts, not adding them. The episode centers on Dollar Shave Club's 2018 decision to cut introductory offers and how it reshaped their customer lifetime value. Lucas walks through the data: a 12 percent drop in new sign-ups but a 31 percent improvement in 12-month retention. Luna pushes back on whether that trade-off works for every brand. They look at the psychology of value-based retention versus price-based retention, referencing a 2023 Harvard Business Review study that…
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