24 stats that show why you should care about subscriber LTV

Knowing what your subscribers' lifetime value (LTV) is and how to increase it is key to creating a healthy, sustainable, and profitable subscription.

Subscriptions not only provide your customers with the convenience of automatic deliveries, they put earning revenue on autopilot for your store. We compiled some key stats to help you understand why.

A subscription with a low churn rate, low customer acquisition cost, optimized costs of goods sold, and high average revenue per customer will help you operate more efficiently and serve customers better.

Subscription businesses tend to get valued a lot more than tradition buy-one-at-a-time stores. That's partly because you're putting earning on autopilot and building long-term relationships with your customers.

The stats below will show you why you should care about LTV and the potential your business can unlock by optimizing it.

If you want to learn more about subscriber LTV, we have a couple of free valuable resources that will help you find the right path.

The first is a calculator that can give you an idea of where you're at right now.

From there, you can use our handy free ebook to understand the factors that influence LTV and actions you can take to move the needle on each one in a way that's effective for your business.

We hope these resources help you get a better grasp on subscriber lifetime value and how it can help you create a better experience for your customers and a more profitable business.

Infographic sources:

• Subscriptions growing 8x faster than S&P
• More than half of online shoppers subscribe to a box service
• Estimated growth of  subscription box market by 2022
• 75% Percent of businesses will be offering subscriptions by 2023
• Successful businesses have LTVs at 3x higher than their customer acquisition costs
• Companies who see customer experience as a key factor driving loyalty and retention
• 1 in 3 companies feel poor systems or lack of integrations hinder customer experience and prevent LTV growth
• 1 in 3 customers say it takes at least three purchases to feel loyal to a company
• Consumers who consider subscribing that actually sign up
• Average CAC in the ecommerce sector
  • $45.27 via Paid Search
  • $65.80 via Display Ads
• More than 70% of marketers agree it’s cheaper to retain than acquire a customer
• 25% to 95%: amount of increased profits that can come from boosting customer retention rates by as little as 5%
• Repeat customers spend 67% more than a new customers
• Half of repeat customers make their 2nd purchase within 16 days of their 1st
• Companies that provide an excellent customer experience can charge up to a 16% premium
• Loyal customers are 50% more likely to try a new product
• Companies that can upsell new customers (65%) 
• Companies that can upsell existing customers (12%)  
• Nearly 1 in 10 ‘Box of the Month’ subscribers will voluntarily unsubscribe 
• Only 1 out of 26 unhappy customers complain.
• #1 reason why subscribers cancel: lack of perceived value
• 47% of repeat buyers turn to marketplaces (like Amazon), even if their first purchase was made directly from a brand (online or retail)
• 11% of customer churn good be prevented by simple company outreach