Building Loyalty Through Subscriptions

87% of coffee subscriptions fail in year one. I finally figured out why. (After watching 3 clients burn through $2M trying) Last week, another specialty roaster called: "Our subscription isn't working. We need better marketing." I asked one question that made them go silent: "When did your subscribers last hear from you?" "...When we ship their coffee." There's your problem. 𝗧𝗵𝗲 𝗦𝘂𝗯𝘀𝗰𝗿𝗶𝗽𝘁𝗶𝗼𝗻 𝗗𝗲𝗹𝘂𝘀𝗶𝗼𝗻: Coffee brands think they're selling convenience. Customers think they're joining a relationship. You ghost them for 30 days. They ghost you forever. 𝗧𝗵𝗲 𝗣𝗮𝘁𝘁𝗲𝗿𝗻 𝗜 𝗦𝗲𝗲: Failed subscriptions: ☕ Ship and forget ☕ No communication between orders ☕ Treat subscribers like transactions Thriving subscriptions: ✨ Weekly coffee education ✨ Exclusive tastings ✨ Direct farmer updates ✨ Subscriber-only events 𝗧𝗵𝗲 𝗥𝗲𝗮𝗹 𝗣𝗿𝗼𝗱𝘂𝗰𝘁: You're not selling coffee delivery. You're selling coffee community. Miss that, and you're just another brown box on their doorstep. 𝗪𝗵𝗮𝘁 𝗔𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗪𝗼𝗿𝗸𝘀: I watched one client go from 200 to 2,000 subscribers by adding: → Tuesday "roaster notes" emails (3-min read) → Monthly virtual cuppings (15 min, optional) → Harvest season updates with actual photos → "Ask the roaster" text line Cost to implement? Almost nothing. Impact on retention? 4x improvement. 𝗧𝗵𝗲 𝗨𝗻𝗰𝗼𝗺𝗳𝗼𝗿𝘁𝗮𝗯𝗹𝗲 𝗧𝗿𝘂𝘁𝗵: Your coffee quality doesn't matter if your relationship quality sucks. Because subscription isn't a business model. It's a promise to stay connected. Break that promise, and they'll find someone who won't. Ready to fix your subscription? Stop shipping coffee. Start shipping connection. The 13% who succeed understand the difference. ____ ♻️ Repost if this changed how you see subscriptions ☕ Follow Darleen Scherer for more coffee industry truth

You don’t build loyalty through rewards—you reward customers for already being loyal. Big difference. Loyalty programs are primarily designed for customers who have already demonstrated consistent engagement and loyalty to your brand. The goal isn’t to create loyalty through rewards, but to recognize and strengthen it. By offering rewards, perks, and recognition, you can maximize their lifetime value, whether by increasing purchase frequency, boosting basket size, or encouraging referrals. Tactics like tiered rewards, exclusive access, and personalized incentives help reinforce their commitment and make them feel valued. 𝗦𝗲𝗰𝗼𝗻𝗱𝗮𝗿𝘆 𝗙𝗼𝗰𝘂𝘀:  For customers with the potential to become loyal, the strategy shifts. These customers have shown higher engagement but haven't fully crossed into the loyal customer category. To convert them, 𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 is key. Tailor rewards based on their behaviors and preferences to create a sense of exclusivity and recognition. It’s also crucial to stay top of mind through strategic touchpoints—whether via targeted email campaigns, loyalty app notifications, or personalized offers that speak directly to their interests. Offering a path to higher-tier rewards as they engage more frequently can further motivate them to commit to your brand long-term. 𝗖𝗮𝘀𝘂𝗮𝗹 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀:  Casual customers require a different approach. They won’t become loyal overnight, and the objective here is gradual nurturing. For this segment, it's all about increasing touchpoints and staying relevant. Broader offers, such as discounts, time-sensitive promotions, or entry-level rewards, help keep them engaged without overwhelming them. The goal is to activate them periodically, ensuring they interact with your brand from time to time. By keeping consistent offers flowing, you maintain visibility, and over time, some of these casual customers may transition into the potential loyal customer segment. ----- Ultimately, loyalty is about retention, not conversion. The focus is on maintaining a strong relationship with those who already support your brand and steadily nurturing others to deepen their commitment over time.

This visual is worth the zoom! I can’t switch off when it comes to retail. I walk around shops unable to stop myself analysing consumer behaviour, unpicking the tactics of pricing, placement and loyalty, while obsessively trying to connect the dots. I find it fascinating to see how retail brands understand the subtle yet powerful ways in which psychological principles shape consumer decisions. It’s been so interesting to see how membership pricing has spread throughout the industry, reshaping loyalty schemes. Our latest collaboration with Vypr delves into more detail on exactly this subject, exploring concepts, backed by data such as: 🔹 Self-Perception Theory: Loyalty pricing reinforces consumer identity. 59% of members feel emotionally connected to brands due to exclusive member pricing, creating committed brand advocates. 🔹 Scarcity effect: Limited-access deals significantly boost urgency—16% of non-members seriously consider joining schemes upon seeing exclusive member-only prices.  🔹 Anchoring and trust: This works by setting a reference point in consumers’ minds, helping them judge the value of membership pricing more favourably. By clearly communicating comparisons and long-term benefits, retailers can turn sceptical shoppers into loyal members who are confident they’re making the right choice. On average, 12% of members and 62% of non-members feel sceptical about membership scheme savings. 🔹 Social proof: 61% of members actively recommend their preferred loyalty schemes to family and friends, magnifying brand credibility and consumer acquisition. The deeper impact lies in how membership schemes fundamentally alter purchasing patterns: ✅ Frequency and basket size: 70% of members shop more frequently, with 63% more likely to buy impulsively. Membership creates habits translating directly into sustained higher spending. ✅ Segmented personalisation: Tailored rewards are essential. Strict budgeters respond strongly to tangible savings; affluent shoppers prioritise exclusivity and premium experiences, significantly influencing retention. Retailers who integrate behavioural psychology into their loyalty strategies is nothing new. But those that do it well, adapting to the huge number of distracts out there to cut through the noise are securing a competitive advantage. Explore these critical insights and unlock the full strategic potential of your loyalty programmes by downloading the full report: https://lnkd.in/eSrRR3R4 #LoyaltySchemes #RetailTrends #ConsumerInsights #RetailEconomics #Vypr

We spend so much time on conversions that we lose sight of their sinister cousin: anticonversions. Churning out all of your existing customers is the most common cause of death in modern tech companies. Companies don’t invest in reactivation, have a poor off-boarding experience, and lose customers forever. There’s three stats I want to highlight to emphasize the importance of this lever: 1. 40% re-subscribe rate: fully 40% of Netflix’s new subscribers are subscribers who canceled within the past 12 months. 2. 18s to catch them before churn: that’s about how long it’s estimated (on average) that you have to recapture your user in your cancelation flow - or they’re lost. 3. 5x cheaper to reach out to: canceled customers are much cheaper to reach via paid advertising, outbound, or other channels. In today's 5K word deep dive, I share the guidance I would give to my own teams working on anticonversions: 1. Dissecting 6 of the best cancelation flows out there today 2. Why people cancel: when to optimize flows vs core 3. Encyclopedia of top 20 anticonversion tests 4. Ideal testing framework + metrics 5. Anticonversion’s 8 key principles 6. Top 7 big mistakes made 7. Cancelation prototype This is the post to forward to your PM friend working on this. Or your product leader so you start.

🚫 Stop Chasing New Customers — Start Leveraging the Ones You Already Have! 🚀 It’s the oldest business myth in the book: “Just get more customers and sales will follow…” But in today’s crowded market, throwing budget at acquisition is often a fast track to burnout—not breakthrough. Here’s the real growth hack: Your most valuable assets are the customers who already know, trust, and have spent money with you. The (Profit) Power of Retention Over Acquisition ♠️ It costs 5x to 25x MORE to acquire a new customer than to keep an existing one (Harvard Business Review) ♠️ Chances of selling to an existing customer? 60–70%. A new prospect? Just 5–20%. ♠️ A mere 5% improvement in retention can boost profits by UP TO 95% (Bain & Co.) Why? Because loyal customers: + Spend more, + Buy more often, + Refer others, + Cost less to serve. Yet too many brands chase new leads while neglecting their gold mine of repeat buyers and brand fans. Proven Ways to Re-Engage and Reactivate YOUR List 1️⃣ Personalized Re-Engagement ♠️ Use email/SMS check-ins with a real reason (“We miss you!” or special offers tied to last purchase) ♠️ Celebrate milestones (birthdays, anniversaries) for relevance and connection 2️⃣ Smart Segmentation & VIP Offers ♠️ Analyze your CRM and target dormant buyers with tailored deals ♠️ Reward top customers with loyalty perks (first access, exclusive rewards, etc.) 3️⃣ Value-Added Content & Support ♠️ Share guides, how-tos, or webinar invites to reconnect and add value ♠️ Offer proactive service outreach—show you CARE, not just sell 4️⃣ Win-Back Campaigns ♠️ Craft “We haven’t seen you in a while!” messages plus strong incentives ♠️ Highlight what’s new, improved, or different since their last purchase 5️⃣ Referral & Advocacy Programs ♠️ Make it simple—and rewarding—for satisfied customers to send friends ♠️ Spotlight customer success stories to foster loyalty and community Is Your Retention Strategy Working? Ask yourself: ♠️ Are you still spending more on acquisition than on deepening existing relationships? ♠️ Do you have systems in place for reactivating and rewarding loyal buyers? ♠️ How often are you truly listening to and learning from your current customers? 💡 Action Challenge: This week, choose ONE retention strategy above and put it into play. A well-timed email… a VIP offer… or a personal check-in can turn a “cold” customer into your next top advocate. 👇 What’s YOUR #1 retention or reactivation win? Drop it in the comments and help spark better business for everyone! #CustomerRetention #CustomerSuccess #BusinessGrowth #Profitability #RetentionMarketing #RelationshipMarketing #Entrepreneurship #LinkedInBusiness #RevenueGrowth #CustomerExperience

Retention Isn’t Sexy - Until You’re Broke Brands chase growth. But when the faucet turns off and the market tightens, email becomes your backbone. So why do we treat it as a short-term fix rather than a long-term asset? I hear this conversation replayed to me all the time from CRM and Brand Managers: Their Manager: Targets are down. Budget’s gone. Just send more emails. CRM: We already sent one this week with a promo. Manager: Send another. Bigger discount. CRM: Unsubscribes were high last time… Manager: Send to everyone — even non-engagers. Add urgency. And so it begins. 📉 Deliverability drops. 📉 Clicks tank. 📉 Unsubscribes rise. 📉 The database - your only owned audience - starts eroding. But the revenue target stays the same. This is what happens when you treat email like a faucet you can turn on and off — instead of a system you build and respect. 💡 Want to break the cycle? Here’s how smart brands avoid the spiral: 1. Build an acquisition engine, even when times are good. Don’t just chase sales. Chase subscribers, on all channels, not just site pop-ups. If 2% of traffic buys, aim for 20% to subscribe. That’s your future revenue. 2. Agree on discounting guardrails. Not every campaign needs a percentage off, even if times are tough. Consider other conversion tools like: - loyalty perks - free gifts - tiered basket incentives - competitions - outlet-style categories 3. Treat non-converters as humans, not dead weight. Reduce frequency, but stay visible. Try to understand why they’re lapsing e.g gift buyers? Promo-only? Seasonal? 4. Use peak trading to re-acquire, not just sell. Black Friday can re-engage lapsed customers. But the follow-up can’t be more noise. Build a new journey. Reset the relationship. 5. Track long-term metrics. Not just revenue-per-send. Show your management week on week how these are growing: -LTV - Repeat purchase rate - AOV - Site visit frequency from consumers on your database 6. Invest in content, not just campaigns. Nurture a community. Give them reasons to stay subscribed. Boost engagement before you ask for a sale. Remember nobkdy going to buy daily and weekly, you need more to keep them engage. Think weekly style tips, news Roundup, podcast drops, games, polls etc Email can be your safety net — but only if you protect the list, grow it intentionally, and stop burning it out with knee-jerk sends. Want to find out our playbook for growing your subscriber base rapidly. (like how we grew out base to 17m). DM me. Build it right. Because when things get tough, it’s your email list that keeps the lights on.

What makes Sephora’s 38m+ member Beauty Insider program so effective? I sat down with Emmy Brown Berlind, SEPHORA’s SVP & GM Loyalty to find out. The podcast link is in the first comment. Really worth a listen for anybody working in loyalty – Emmy (and Sephora) are doing some brilliant stuff. Here are the big three themes for me (with an example of how they bring it to life): 1️⃣ Valuable, not transactional 1️⃣ → Members get real value for desired actions, BUT it isn’t just a simple earn-and-burn proposition or a barrage of discounts. Sephora really keeps the rewards fresh, with an ever-evolving mix of items available in the Rewards Bazaar, changing birthday gifts, etc. 💡 Example: last month, Sephora added an exclusive Rare Beauty (Selena Gomez’s brand) bundle with a vanity mirror, journal, hair clips, etc on the Rewards Bazaar, redeemable for 1000 points. 2️⃣ Personalized, not spammy 2️⃣ → Beauty is a really personal category. Brands waste lots of calories sending irrelevant messages to customers. Sephora uses Beauty Insider as their data engine, rewarding members for sharing data and putting it to use in a transparent, valuable way. 💡 Example: Sephora runs gamified challenges like Passport to Beauty which reward members for sharing relevant data and learning about Sephora’s offering, like 100 points for coming in-store for a ColorIQ shade matching. 3️⃣ Omnichannel, not siloed 3️⃣ → The BI program rewards members who are engaging across Sephora’s shopping and marketing channels. The in-store experience rocks and leads to tons of new product discovery, so they invest heavily in celebrating & promoting that. They’re also expanding to be in 1,100 Kohl's stores nationwide by 2025, so the in-store experience is incredibly accessible. 💡 Example: one of the Passport to Beauty ‘stamps’ was Buy Online, Pick Up In Store (BOPIS), which helps members get their items same-day while discovering new products. This is a best-in-class program in so many ways. Most importantly, it’s just plain fun for members. Gamified, evolving, omnichannel, and filled with tons of ‘wow’ moments. Definitely one of our most innovative customers at Talon.One. We’re thrilled to be supporting them on program tech. Check it out – would love to hear your thoughts 💄 https://hubs.li/Q02nx7BV0 #loyaltyprograms #loyaltymarketing #customerloyalty #sephora

Most companies try to scale by sprinting after new buyers and wonder why their churn spikes. I give them the Sustainable Growth Framework instead. Three focus areas. Total alignment. Real momentum. After helping subscription businesses grow and retain their members, I’ve learned this: scaling isn’t about speed. It’s about direction. Here’s the framework that keeps your growth steady and your subscribers loyal. 1. Relationships over transactions Don’t chase one-time buyers. Build long-term trust. When you focus on relationships, you create members who stay not because they have to, but because they want to. 💡 Example: If you’re a fitness app, build habits with your members. Send progress updates, celebrate milestones, and personalize recommendations. Growth happens when people feel seen, not sold to. 2. Freedom over friction Don’t lock people in. Make it easy to leave or stay by choice. Subscribers value autonomy. When you respect that, they reward you with loyalty. 💡 Example: If you’re a streaming service, a clear cancel button and transparent pricing signal confidence. The trust you gain outweighs the short-term retention dip. Ease builds credibility. Credibility builds staying power. 3. Outcomes over offerings Don’t pile on features. Deliver results that matter. Your best subscribers don’t want more. They want better. Example: 💡 If you’re a learning platform, don’t add hundreds of new courses. Focus on completion rates, results, and community feedback. Outcomes drive word of mouth far more than volume ever will. The magic? Only you know who your best subscribers are. Serve them well, and growth follows naturally. Because in subscription businesses, scale isn’t about adding more. It’s about deepening what works. +++++++++++ 👋 I'm Robbie, I'm a consultant, author, and speaker covering all things subscription businesses. +++++++++++ 🛎 Tap the bell under the banner on my profile to catch the next post. ++++++++++++

Stop churning high-value customers. Segment your loyalty programs! You’ve worked hard to build a loyal customer base, but are you maximizing their value? If you're not segmenting your loyalty program, you're leaving money on the table. 💵 Based on the success of ‘000s of Appstle customers,  I truly believe personalization is key for customer engagement, retention, and loyalty! 📌 Here’s why I think segmenting your customers into loyalty based tiers is a game-changer: 1️⃣ Personalization drives engagement Generic rewards don’t cut it anymore. Infact, 56% of customers prefer highly personalized loyalty rewards. 👉 By segmenting your customers into distinct tiers based on key characteristics, you can offer rewards that matter to, and motivate them. The result? Higher engagement and increased CLTV! 2️⃣ Encourage more frequent purchases Everyone loves a challenge, and wants to be at the top! Tiered programs with distinctive benefits motivate customers to level up.  Studies show that customers in tiered programs spend 67% more than those without. 👉 As customers move through the tiers, their incentives grow—making them more likely to continue their relationship with your store. 3️⃣ Reward high-value customers Not all customers are the same. Some are your brand’s biggest advocates—your VIPs. With tiered programs, you can give your most valued customers, rewards that make them feel valued. 74% of consumers believe brand loyalty is about feeling understood and valued. 👉 Focus on your top spenders and offer tailored incentives that will keep them coming back. 4️⃣ Track & improve customer behavior With tiered loyalty programs, you gain a clear view of how different shopper segments behave. Are they more likely to shop during specific days and times? Are they influenced by certain promotions and benefits? 👉This data helps you optimize your strategy and maximize LTV over time. ✅Pro tip: The beauty of tiered programs? They incentivize behaviors! Offer perks that motivate customers to reach the next level, and you’ll have customers for life. ♾ Want to grow your Customer Lifetime Value? Segment, personalize, and reward! It’s how you create customer loyalty—and keep it. #Appstle #subscriptions #memberships #loyalty #bundles #customerretention #shopify #shopifyplus

While competitors sell mattresses and forget about customers, Eight Sleep scaled to a $500M valuation by turning a smart mattress cover into a recurring revenue machine. The secret lies in their counterintuitive approach. 1. HARDWARE SELLS ONCE, SUBSCRIPTION PAY FOREVER Without the subscription, you lose AI adjustments, detailed sleep analytics, and smart alarm features: → Pod Cover: $1,745-$4,250 upfront → Autopilot subscription: $15-$24/month for AI temperature control and sleep tracking → Resulting in $180-$288 annual recurring revenue after hardware purchase The hardware collects data while the subscription turns it into automatic temperature optimization. 2. SCIENTIFIC AUTHORITY OVER SOCIAL MEDIA CLOUT Eight Sleep targets performance optimization authorities: → Dr. Andrew Huberman (Stanford neuroscientist) → Dr. Peter Attia (longevity researcher) → Lewis Hamilton (Formula 1 champion) These are professional recommendations from scientific authorities, not paid celebrity endorsements. When Dr. Huberman discusses Eight Sleep on his podcast, millions of optimization-focused listeners treat it as expert validation. 3. FROM FREE TRIAL TO FEATURE ADDICTION The trial creates subscription dependency through staged value: Week 1: Pod learns sleep patterns while providing baseline data you've never accessed. Week 2-3: AI makes intelligent adjustments. Sleep improves, and you check the app daily. Week 4: Try sleeping without perfect temperature control after a month of optimization. Feature dependency is formed. 4. AUTHORITY → TRIAL → SUBCSCRIPTION LOCK-IN Eight Sleep has carefully set up a funnel architecture that you just can’t miss: Top: Authority-driven awareness through WIRED, CNN Underscored reviews Middle: 30-night trial removes risk, financing makes $2K+ accessible Bottom: Monthly updates and habit-forming optimization justify recurring fees Users report 27% improvements in deep sleep. When outcomes are measurable, canceling feels like sabotaging your health. 5. $500M VALUATION ON MEASURABLE OUTCOMES Eight Sleep raised $86M Series C at $500M valuation, creating "sleep fitness" as a category between health tech and performance optimization. They turned one-time purchases into ongoing relationships through measurable value creation.