Reasons Why Your Subscription Business is Failing

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  • Subscription-based business models have become popular, but executing them can be challenging.
  • High customer churn rates are a significant challenge for subscription businesses.
  • Lack of value, poor marketing, pricing, and poor user experience are common reasons for failure.
  • Strategies for success include customer engagement, targeted ads, and a user-friendly mobile app.

Subscription-based business models have gained immense popularity in recent years. The recent boom in 2017 has made it a popular business model among people making it an attractive choice for many entrepreneurs. Many companies have ventured into the subscription industry, hoping to create a steady revenue stream. However, this business model can be incredibly challenging to execute.

Failing Subscription Businesses

A failed subscription business can lead to negative financial consequences and brand reputation. Don’t throw in the towel if your subscription business is not thriving. Here are some reasons why your subscription business may not succeed and offer insightful solutions to get it back on track.

Lack of Customer Retention

Revenues for subscription businesses increased in 2021. However, this is attributed to the high customer churn rate for this kind of business model.

Customer churn rate is a significant factor that can affect the success of your subscription-based business. A high churn rate means you are spending more money on acquiring new customers than retaining existing ones. You can improve customer retention by providing an excellent product or service, handling customer complaints professionally, and implementing loyalty programs.

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Lack of Value

If your subscription-based business does not provide value to your customers, they will undoubtedly cancel their subscriptions. Your business should solve a problem or provide a unique aspect that customers cannot obtain elsewhere. Conduct market research to determine your target audience’s needs and develop a subscription service that offers what they want.

Inadequate Marketing Efforts

Marketing is a critical aspect of any business, including subscription-based businesses. Many entrepreneurs make the mistake of leaving marketing for last, assuming that their product or service is enough to promote itself. Marketing your subscription service should be an ongoing process that uses various channels to reach your target audience.

Poor User Experience

The user experience is vital to the success of your subscription-based business. If your website is challenging to navigate or your subscription process is confusing, customers will likely choose to cancel their subscription. Ensure your website is user-friendly, efficient, and easy to use. You can also offer a user-friendly mobile app to simplify the subscription process.


Pricing is a significant factor in determining whether customers subscribe to your service. If your subscription service is too expensive, potential customers may opt-out. On the other hand, if you price your subscription service too low, customers may question the quality or value of your product. Be sure to consult with a pricing expert when developing your pricing structure to ensure it is reasonable yet profitable.

Additional Tips to Improve Your Subscription Business

There are many other ways to improve your subscription-based business. Here are some great options:


Build an App

Apps are crucial for subscription-based businesses as they are convenient and easy to use. Customers can subscribe and manage their accounts with a few taps on their smartphones, making staying subscribed easier. If you don’t want to do this yourself, consider hiring an experienced app development service to do this for you. They can also help you with your marketing efforts.

Engage Your Customers

Engaging with customers is a great way to build customer loyalty and increase retention rates. Use social media platforms, email newsletters, and surveys to keep in touch with your customers and find out what they need or want. Make sure your team responds promptly to any queries or concerns they may have.

Targeted Ads

Use pay-per-click (PPC) advertising and other ads to reach your target audience. PPC advertising is an effective way to increase brand awareness and get potential customers to your website. You can also use targeted ads on platforms like Facebook and Instagram to reach more people.


Another way to get customers to your website is by utilizing search engine optimization (SEO). SEO is a great way to increase organic traffic, which can lead to more subscribers. Ensure you optimize your website for keywords relevant to your subscription service and use engaging content to keep people on your page.

Subscription-based businesses are becoming increasingly popular due to their convenience, affordability, and ability to generate recurring revenues. However, the success of this business model depends on several factors. Addressing the issues discussed here can increase customer retention, provide customer value, and improve your subscription business’s overall performance. With the right strategies, you can succeed with a subscription-based business.

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