Retention Edge E17: The Subscription Playbook for 2.5-3x Higher LTV

In this episode of The Retention Edge Podcast, Eric talked with Andriy Rudnyk, founder of The Good Subscription Agency about how ecommerce brands can grow recurring revenue through smarter subscription programs.

Andriy’s agency helps Shopify brands increase their MRR by improving every touchpoint in the subscriber journey, from acquisition offers and onboarding to churn prevention and analytics.

If you’ve ever wondered whether your brand is a good fit for subscriptions, or how to set up a profitable program that customers actually stick with, this one’s for you.

Here are the key takeaways from the pod.

Why Subscriptions Matter More Than Ever

Subscriptions are a path to long-term profitability, not just top-line growth.

Andriy kept coming back to this. Subscribers are worth 2.5 to 3x more over their lifetime.

Subscription models are basically a mindset shift. Instead of chasing the next new customer, you just keep serving the ones who already love you. And that leads to significantly better results.

How to Know If You’re a Good Fit

You don’t need to sell toothpaste or protein powder to make subscriptions work.

Yes, consumables are the obvious fit. But Andriy walked through a ton of examples in that “murky middle” where it still works: apparel, curated boxes, even furniture-as-a-service.

The real test is simple: do people come back? If they’re already buying 2–3 times a year, you’ve got something to build on.

Setting Up a Subscription That Converts (and Sticks)

Your first-order experience is everything.

Most brands obsess over the fear of “what if we remind customers their order is coming and they cancel?”

Andriy’s advice is the exact opposite. Over-communicate. Set expectations. Teach people how to get the most out of the product.

The way someone feels after that first delivery basically decides whether they stick around.

Why Subscribers Churn (and How to Prevent It)

Churn sucks, but it’s a reality of the subscription game. But cancellations aren’t a failure. They’re feedback you didn’t have to pay a focus group for.

Most churn happens because of a misalignment between expectations and reality.

Use cancellation surveys to dig into why — “too much product” might actually mean “didn’t use it enough” or “didn’t love it.”

Then use what you learned to refine your offer and acquisition promise.

Subscription Tools & Tech Stack

Recharge, Loop, Skio… they’re all pushing forward but in different ways.

Recharge is the “big dog” with the most mature product and analytics. Loop has killer build-a-box. Skio is scrappy and hungry.

But everyone is basically fighting to become the “retention OS” — the place where all your post-purchase data lives. Think Klaviyo, but for subscriptions.

Measuring Success

Andriy boiled success down to three numbers:

• how many customers choose subscription,

• how much they spend per order,

• how many orders they place in a year.

Multiply those together and you’ve got your revenue machine. It’s much cleaner than chasing churn benchmarks that don’t mean anything across categories.

Businesses built on subscriptions and recurring revenue are the most reliable, the easiest to make work long-term.

But a subscription product is not a silver bullet. This episode has everything you need to know to build a successful subscription ecommerce business; instead of pushing a recurring buy that no one cares about.

Watch or listen to the full pod below:

You can also find it on Spotify. Wherever you listen, don’t forget to like, rate, review, comment, subscribe. Each interaction helps us bring more experts on to share their wisdom (always free, btw).

You can connect with Andriy on LinkedIn, and find his agency here.

I’ll be back later in the week with the latest from around the ecom world, plus our regular deep dives into retention and sustainable growth strategies.

Talk soon,

Pietro and The Retention Edge Team

PS: thinking about launching your own app? Go to our website to get a preview of your app for free, or shoot me a DM on LinkedIn to talk about it.