Retailers are prioritising retention strategies over the relentless acquisition of new customers. According to the latest data from Recurly, a leading subscription management platform, acquisition rates are slowing across the sector, prompting brands to rethink their approach and invest in keeping existing subscribers engaged.
Recurly’s 2025 Subscription Benchmark Report reveals that pause options – a feature allowing customers to temporarily suspend their subscription – have surged by 68% year-on-year. This flexibility is proving critical in reducing churn, as consumers can enjoy control over their spending without needing to sever ties with favoured brands. Conversely, making it harder for customers to suspend subscriptions is more likely to drive away business as customers disengage entirely.
Loyalty rewards and personalised offers are also gaining traction, with retailers leveraging data-driven insights to deliver experiences that feel bespoke rather than transactional.
Subscription fatigue
The shift comes as subscription fatigue sets in among consumers. With streaming, meal kits, beauty boxes and replenishment services competing for wallet share, shoppers are becoming more selective. Retailers that once relied on aggressive acquisition campaigns are finding that the cost of winning new customers is rising, while lifetime value is harder to guarantee. As a result, retention-first strategies are increasingly being prioritised.
Pret A Manger, for example, reported a 20% revenue uplift in 2023 after introducing Club Pret – its loyalty-driven subscription which offers 50% off five barista-made drinks a day as well as additional perks such as 20% off all in-store purchases for £5 a month, a subscription which can be paused at any time. Subscribers to Pret spend four times as much as non-subscribers, the company has found.
The role of AI
AI is playing a pivotal role in this transformation. Predictive analytics tools are helping retailers identify churn risks early, enabling proactive interventions such as tailored discounts or curated product recommendations. These technologies are proving highly successful in deepening engagement and reinforcing brand loyalty in an increasingly competitive landscape.
Retailers are now concentrating on flexibility and personalisation as core elements of their subscription models. Pause features, loyalty perks and tailored experiences are becoming standard practice, while the ability to anticipate customer needs through data is shaping the next phase of growth. In a crowded market, the emphasis is shifting from signing up new subscribers to creating value that keeps existing ones committed for the long term.
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