Subscription Businesses
topic on 3 shows · 6 statements across 5 episodes
My First Million 
Top Founders 
20VC
6 statements about Subscription Businesses, every show
Salguero: Retaining subscription customers past 90 days secures long-term retention
“The first 30 days is, you know, big churn 30 days, gets a little smaller. If you get them through that first 90 day hump, you have a customer who will stay with you for a very long time.”
Puri: Subscription businesses profit from customer forgetfulness and zero usage
“Easily, you know, most of, I think this is the ugly side of most subscription businesses is that people don't use the subscription. They just don't remember. They don't cancel. They're either too lazy or they forgot. And you sit here thinking you have all thes…”
Union Square Ventures focuses its recent investments heavily on subscription businesses
“And I think today, if you look at the investments we've made in the last few years the vast bulk of those revolves around subscription businesses where we think the incentives between the company and the end user are actually aligned, right?”
Mehr: $89/mo subscription businesses typically see 40-50% month-one churn
“Most subscription businesses around this price point would lose 40, 50% of their customers on month one. Month one is the highest churn.”
Churn rate is the most critical metric for subscription businesses
“The key metric in all SaaS or subscription businesses is churn rate. The lower the churn rate, the easier it is for the company to grow.”