“9 out of 10 subscription and membership brands do not align their teams with revenue retention or customer value. Houston, we have a problem.”Substribe mission to rocket retention
At work, few things are better than the energy transmitted by a team moving purposefully to reach meaningful goals for their business and customers.
Quiet quitting and talent wars are manifestations of people searching for growth and finding ourselves in the wrong place. The trap of a comfort zone.
When you hear “Business as usual” – the harbinger of mediocrity – it is a symptom of living in a comfort zone.
A high performance environment must be designed – and redesigned – to capture and harness value.
But in the pursuit of efficiency, bright people have been driven into an institutional mindset. Dots don’t get joined up. People stick to their knitting.
Growing revenue retention sustainably is the by product of a valuable subscription service.
Subscription teams who do not know the part they play in protecting, growing and finding recurring revenues have an existential crisis to content with. Regardless of how well crafted the KPI / OKRs and strategy plans are.
Subscription brands making the choice to not measure customer value consistently are stuck in the past, where subscriptions were purely a financial instrument.
Can you measure customer value? Yes. Yes, you can.
For customers it is experiencing a must have service.
For subscription businesses, it is net revenue retention.
The two elements are – or should be – part of the same balanced system.
If you have a large, established subscription brand, then the benchmark for revenue retention is 88% gross revenue (GRR) 106% net revenue (NRR). From a customer perspective, the benchmark is 7.6 for Must Have Score. How this changes over time and by segment is a critical input into high performance subscriptions. How this differs to nascent brands and SaaS is also useful, when you want to keep control of the narrative.Substribe 2023
Subscriptions are about revenue retention. They are about the impact you need to make, in order to achieve revenue retention. And all about the cross functional teams who need to move in sync with each other to push the boundaries of value.
Substribe exists to create and maintain a high performance mindset for subscription teams and their customers. Work is way more fun when this happens.
The fundamentals of subscriptions – knowing who the customer is, the problem to solve, and how to solve it – should always evolve.
Subscription leaders look for new ways to tackle retention – and Substribe helps to bring the outside in.
We created Substribe to help our clients – and their customers – harness the power of the subscription model to unlock performance.
Substribe is not for people with closed minds. Or the business as usual brigade. The, “it won’t work here” crew.
Is it for you?