Hidden Moats in Consumer Subscription

Consumers will always churn at higher rates vs. enterprise services and even the best consumer apps can expect first year churn to be 30–50%.

Your product isn’t for everyone, and that’s OK. More importantly, low churn for the sake of low churn is counterproductive - in reality, there’s a sweet spot of acceptable turnover to aim for. Extremely low churn can indicate you’re not stopping enough of your audience, failing to convert them at an optimal rate, or that it’s time to raise pricing,... See more

The churn rate for companies employing usage-based billing is about 10 percent less on an annual basis: 26 percent for usage-based billers in comparison with 37 percent for non-usage-based billing companies. These lower churn rates reflect higher customer satisfaction and engagement with companies that fulfill the central tenet of the Subscription

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...consumers are less likely to churn when they subscribe for a product or service they need. Aspirational services (e.g., gym/fitness memberships, audiobooks, meal kits) are usually the first subscriptions to go when consumers find that they can’t live up to their aspirations for being healthier or reading more.