The subscription model: what suits one, and the emails that keep it running
Customers agree to be billed and sent the product on a schedule. It suits things people run out of, and it lives or dies on the emails around each charge.
- 128Subscription Model
- A business model where customers pay a recurring price at regular intervals, monthly, quarterly, or annually, to gain access to a product or service.
- Common forms
- Subscribe and save, curated boxes and paid memberships
- Suits
- Products with a predictable run-out date: coffee, supplements, pet food, refills
- Measured by
- Active subscribers, and churn read by billing cycle
- Runs on
- Shopify subscriptions or an app like Recharge, wired into Klaviyo
Three kinds of subscription an online shop can sell
Not every subscription is subscribe and save. What the customer is paying for decides why they'd leave, and what your emails have to do about it.
| What they're paying for | Why they cancel | What email does | |
|---|---|---|---|
| Replenishment | Never running out | Product piling up in the cupboard | Reminders before each charge, with skip and delay |
| Curated box | A surprise in every delivery | The surprise stops landing | Previews, swaps and a say in what comes next |
| Membership | Perks: free delivery, early access, member prices | Not using the perks | Reminding them what they've had, and what's coming |
Which products suit a subscription, and which don't
The test is the run-out date. If customers finish your product at a steady pace and need the same thing again, a subscription takes a decision off their plate. Coffee, supplements, pet food, skincare refills, wax melts.
If they don't run out, a subscription is a standing order for something they don't need yet. Durable goods, gifts and most fashion fail the test. They can still sell a membership, but subscribe and save on a kettle is a cancellation waiting to happen.
The emails a subscription can't run without
Every charge is a moment the customer can change their mind, and each one needs an email. Most subscription apps ship defaults for these. Hardly anybody rewrites them.
- A reminder a few days before each charge, with skip, delay and swap one click away
- A failed payment sequence that names the card and links straight to updating it
- A card expiry warning, sent before the charge fails
- A cancel route that offers pause and swap before any discount
- A winback for the ones who still go, written for a lapsed subscriber
The failed payment emails matter most. That customer still wants the product, and the system is the only thing in the way. Our subscription churn guide takes each one in turn.
Reading subscription churn by billing cycle
One monthly churn figure hides the problem. Split it two ways. Failed payments against people who chose to leave, because they need different fixes. Then by cycle: people who leave after the first box never understood the plan, and people who leave a few boxes in are usually drowning in product.
Related terms
FAQs
Does subscribe and save need a discount to work?
A small standing saving helps people say yes, but it isn't why they stay. They stay because the timing's right and changing it is easy. Lead with convenience, set the cadence to how fast the product really runs out, and keep big first-box discounts out of it, or you'll attract people who cancel after one delivery.
How do I know if my product suits a subscription?
Look at your repeat orders. If plenty of customers already reorder the same product at a fairly regular gap, a subscription formalises a habit that exists. If repeat orders are rare or irregular, a subscription won't create the habit. Fix the second order first, then offer the plan to people already coming back.
What's the difference between a subscription and a loyalty programme?
A subscription is a commitment to buy on a schedule. A loyalty programme rewards buying, with no commitment at all. Plenty of brands run both: the subscription for products people run out of, the programme for everything else, with each group held apart in Klaviyo so nobody gets the wrong email.
Rather we explained it on your own account?
Bring your Klaviyo account to a growth consultation. We'll walk through what this means for your numbers, in plain English, and what we'd fix first.
Half an hour with Theo, our founder.
We're all about relationships built on trust, mutual respect and a shared vision for success. If that sounds like your vibe, let's make some waves together 🌊
