Identifying and nurturing high-value subscribers is crucial to long-term success. Which is why Customer Lifetime Value is such a powerful tool, says Hazel Davis in the SubscriptionX 2025 report.
“CLV gives you a more holistic view of a customer’s true worth. For example, a customer who signs up to your highest-tier plan but cancels after a year may be less valuable than someone on a mid-range plan who stays for five years,” says Dean Standing, chief revenue officer at customer data company Sagacity. “Building these long-term relationships, and recognising and tracking the often hidden value of loyalty and customer advocacy, is what sets high- performing subscription businesses apart. And data is your most powerful ally.”
High-performing subscription businesses stand out because they focus on building long-term relationships and recognising the often-hidden value of loyal customers.
Data is central to this approach, enabling brands to spot early warning signs of churn, such as a drop
in engagement, increased returns, or subscription downgrades, and to act quickly with targeted offers or exclusive content to re-engage those at risk.
Adapting to changing needs
Adapting the proposition as customers’ needs evolve is also critical. For instance, someone who subscribes to baby products will require different recommendations as their child grows. Personalisation, powered by rich customer profiles and segmentation, is key to delivering timely, relevant experiences that increase satisfaction and reduce cancellations.
Ultimately, brands that invest in understanding their subscribers at this level are best placed to boost retention and drive long-term profitability. Increasing customer lifetime value depends on building strong relationships and delivering personalised, relevant experiences that evolve over time.
“Customer lifetime value increases when brands build a strong relationship with consumers
and a reputation for delivering bespoke helpful interactions,” says James Herridge-Leng, head of retail & CPG, EMEA at Braze, “This means delivering personalised, relevant experiences that evolve over time. Retention based strategies such as multichannel engagement, rewards, and tailored onboarding are most effective.”
Feedback also provides insight into why customers subscribe, what they value, and what drives their loyalty. This allows brands to make continual, data-driven improvements, experimenting with new approaches and measuring their impact on retention and satisfaction.
This is an excerpt from the RetailX Subscription Report 2025, which provides an in-depth look at the ever-evolving subscription economy, offering retailers a roadmap to tap into this growing trend. The subscription economy is reshaping how consumers engage with brands—and this report aims to help you harness its potential.
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