The month-two cliff
First order looks profitable. Then a third of the cohort never takes shipment two, and the contribution margin you modeled evaporates before the second charge clears.
You are good at buying customers. That is why the problem is invisible until the math turns. Month two takes a bite, month three takes another, and you buy new subscribers just to stand still. We rebuild the back door so the front door finally pays.
Cohort work / Not decoration
Six leaks we find in almost every subscription P&L between fifty thousand and one million a month. None of them show up on a first-order ROAS dashboard.
First order looks profitable. Then a third of the cohort never takes shipment two, and the contribution margin you modeled evaporates before the second charge clears.
You need four or five cycles to recover acquisition cost, so every scaling push drains cash. Growth becomes a financing problem instead of a marketing one.
Failed cards, expired tokens, insufficient funds. Anywhere from eight to eighteen percent of your churn is not a decision at all, and no one on the team is measured on it.
The subscriber pays, waits five days, opens a box with no context and no ritual. Nothing taught them how to use the product, so nothing convinced them to keep it.
Your flow offers one button. Somebody going on vacation, sitting on three unopened bags or wanting a different cadence gets treated exactly like somebody who hates the product.
Fifty percent off the first box buys a cohort that was never going to stay. You trained the market to wait for the coupon and taught your best customers to feel overcharged.
Six workstreams, one economic target: make a subscriber worth more than it costs to get one, faster than your bank account notices.
We rebuild your numbers by signup cohort instead of by month, then separate voluntary from involuntary churn until the real leak has a name and a size.
The first 90 days get redesigned around commitment, cadence and perceived value rather than a discount that only filters for bargain hunters.
From confirmation to unboxing we script the experience that teaches usage, sets expectations for shipment two and turns a purchase into a habit.
We replace the cancel button with a decision tree, then run structured win-back on everyone who leaves anyway, timed to their consumption cycle.
Every message is anchored to the replenishment clock instead of the marketing calendar, including dunning that reads like service, not collections.
Meta and Google get rebuilt around payback period and lifetime value by cohort, so spend chases subscribers who stay instead of first orders that flatter the dashboard.
Aggregate results across subscription and replenishment engagements. Individual outcomes vary with category, margin and how much runway you give the work.
Ranges we consider a normal outcome: churn down 20 to 45 percent, lifetime value up 40 to 120 percent, payback measured in weeks instead of months. Nothing here is a guarantee.
Five phases. We diagnose before we touch anything, and we ship in the order the money responds to, not the order that is easiest to present.
We pull two years of subscription data, rebuild retention by cohort and by entry offer, then split churn into voluntary and involuntary. You get a one-page verdict on where the money leaves and what it is worth to plug it.
Week 1—2Entry offer, cadence options, prepay incentives and tier structure get redesigned against your contribution margin. The target is a subscriber who reaches shipment three without a discount holding them there.
Week 2—4Onboarding sequence, first-delivery ritual, pause and swap flows, dunning and win-back all get written, built and connected to your subscription platform. This is where most of the churn reduction actually comes from.
Week 3—7Paid media gets rebuilt around payback and lifetime value by cohort. Creative stops selling a coupon and starts selling the reason to stay subscribed, and scale decisions get gated on payback rather than day-one ROAS.
Week 5—10Monthly cohort reviews, a live retention dashboard and a standing test queue across offer, lifecycle and creative. Every cycle the curve should flatten a little further and the payback window should close a little faster.
OngoingFounders and operators who stopped buying the same customer twice.
We were adding four thousand subscribers a quarter and standing still. They found that most of our month-two churn was failed payments and a first box that explained nothing. Fixing those two things moved more revenue than any campaign we had run all year.
The pause-first flow felt risky and it was the single best decision we made. Roughly a third of the people who used to cancel now pause and come back. Our payback window went from just over three months to about six weeks.
They refused to touch our ad account for the first month, which annoyed me and was completely right. Once the refill offer and onboarding were rebuilt, the same spend produced subscribers worth nearly double what they used to be.
Fixed scope, no long ramp, no retainer that quietly turns into reporting. Pick the depth that matches how urgent the leak is.
The eight questions every subscription founder asks us in the first call.
Around two thousand active subscribers is where cohort analysis stops being anecdote and starts being math. Below that, monthly cohorts are too small for a churn difference to be distinguishable from noise, and you are better served by fixing the obvious experience gaps yourself. Most brands we work with sit between five thousand and sixty thousand active subscribers and do fifty thousand to one million a month. If you are smaller but growing quickly, the teardown is still worth it as a blueprint for the volume you are about to hit.
Both, but never in that order. Pouring paid traffic into a subscription that loses a third of every cohort by month two is how brands buy their way into a cash crisis. We fix the offer, onboarding and lifecycle first, then rebuild Meta and Google around payback period and lifetime value instead of first-order ROAS. If you only want media buying and no retention work, we are the wrong agency and we will say so on the first call.
We work day to day inside Recharge, Skio, Stay, Loop, Bold, Shopify native subscriptions and Chargebee, plus Klaviyo, Attentive and Postscript on the messaging side. Headless and custom billing stacks are fine as long as we can get read access to subscription events and charge attempts. The platform matters far less than the data quality behind it. If your subscription events are not being logged cleanly, cleaning that up becomes the first deliverable.
Involuntary churn moves first. Better dunning, card updater logic and retry timing usually recover revenue within two to three weeks because failed payments resolve on a short clock. Voluntary churn is slower by definition: a cohort that enters in March only tells you about month-two retention in April and month-three retention in May. Plan on sixty to ninety days before the retention curve for a full cohort can be compared honestly, and remember that results vary by category and margin structure.
Almost never, and it is usually the reason the problem exists. A deep first-box discount selects for people who wanted a cheap trial, not a habit, and those cohorts churn hardest in month two. Worse, standing discounts destroy contribution margin exactly when you need it to shorten payback. We do use prepay and commitment incentives, because paying for three cycles up front is a fundamentally different economic decision than getting half off one.
We treat involuntary churn as an operations problem with an owner and a number, because for most brands it is eight to eighteen percent of total churn and almost entirely recoverable. That means account updater coverage, retry schedules timed to payday patterns rather than fixed intervals, and dunning messages written as service rather than collections. We also fix the quiet killers: expired tokens, address failures and cards that were never eligible for recurring charges. This is typically the fastest revenue we find in the first month.
For the teardown we need read access to your subscription platform, your ecommerce backend, your email and SMS platform, your analytics and a data export of subscription and charge events covering at least twelve months. For build work we need editor access to the lifecycle platform and the subscription flows, plus a named internal owner who can approve copy and offer changes. If we run paid media we need partner access to your ad accounts, never ownership of them. Everything is covered by a mutual confidentiality agreement before any credential changes hands.
You send the form on this page, we review your numbers and reply within one business day. If the fit looks right we run a forty-five minute call about your cohorts, margin and what you have already tried, then send a scope with a fixed price and a delivery date. Once you sign, access is collected in a single kickoff session and the teardown starts the same week. We take on a limited number of subscription brands per quarter so the diagnostic work never turns into a queue.
The more honest the numbers, the more useful our reply. We answer every serious submission within one business day.
Your submission is in. We read every one against real cohort math, so expect a substantive reply within one business day. If it is urgent, message us on WhatsApp and reference your brand name.
We cap intake so the diagnostic work stays deep. If the quarter is full we will tell you the next available start date instead of stalling you.
Stop buying
the same customer twice
Every month you wait, another cohort walks out the back and you pay to replace it. The teardown takes fourteen days and tells you exactly what that door is costing you.
Get the churn teardown