This is what an average subscription brand looks like these days:
Slap a “Subscribe & Save” button on the product page.
Pray someone bites.
And finally, hide behind renewal emails, hoping the customer doesn’t notice another batch is coming before they can unsubscribe.
I think that’s a lazy strategy.
Today, I’m breaking down what subscription brands can learn from Atomic Habits. More importantly…
I’ll give you seven effective yet simple tactics on how you can increase CLV by getting customers to fall in love with using your product.
Let’s get into it…
You’re Selling a Behavior, Not a Product
Data shows it’s one thing to convert the customer to a subscription. Keeping them subscribed is a totally different ballgame.
60–70% of subscribers are lost between orders 1 and 3. That means most brands look at their Recharge dashboard by the end of month 3 and realize most of their subscribers are gone.
Churn can happen because the product didn’t provide the expected results. Churn can also happen because the behavior that could’ve led to the results was never formed.
A good product is not enough to keep the customer subscribed. Is it the foundation? Absolutely. But customers don’t cancel products they use every day. They cancel products that never became part of their routine.
Forming A New Behavior Is Hard… Really Hard.
Science tells us it takes anywhere from 18 days to 254 days for people to form a new habit, with the average being 66 days.
Of course, there are many variables that influence this. One being the difficulty of the habit itself. It’s much easier to consume a scoop of creatine every morning than it is to run a 5k every day.
Moreover, adopting a new habit becomes harder when it requires you to replace a bad habit. At that point, you’re dealing with identity shifts and psychographics.
A fitness influencer is much more likely to stick to a morning spirulina drink than a person trying to replace their White Monster for AG1. One already sees themselves as a healthy individual, the other requires an entire identity shift.
Another variable is the environment. “People often choose products not because of what they are, but because of where they are.” You can have an amazing product, but if it’s collecting dust on the customer’s bathroom shelf, it won’t make a difference.
It doesn’t matter how long it takes to form a habit. Habit formation is hard regardless. It takes consistency and effort from the consumer. And it’s up to you, as the brand owner, to support them along the journey.
7 Tactics For Subscription Brands To Encourage Habit Formation & Increase Lifetime Value
Below are several tactics for subscription brands to encourage habit formation based on James Clear’s research. Some of these may or may not apply to your brand, depending on what you sell, so common sense is advised.
Increase Commitment With Longer Subscription Plans
A 30-day subscription plan may be sufficient for the customer to see some benefits, but it’s not enough to form a new habit around your product. It’s like dipping your feet in ocean water.
These days, I’m seeing more brands push 90-day subscriptions as the core acquisition offer. I consider this a smart strategy.
Now, you might be thinking: “but won’t longer subscriptions scare many potential customers away?”
You’re right, and that’s the whole point…
To attract the good (high LTV) customers, you must repel the bad (low LTV) customers first. With shorter, 30-day subscription plans, you’re more likely to attract freebie seekers and trial warriors.
Think of it as downloading a free eBook vs paying fifty bucks for it. The information inside is the same, but when you pay for it, you’re more likely to consume it because of the commitment.
The key here is to position the long subscription plan as a no-brainer. Increase perceived value with bulk savings and free gifts.
Engineer Quick Wins
Research shows that buyers who feel early benefits have 2x more retention by month 5.
Once the customer subscribes, you want them to consume the product as soon as possible.
“Make the new habit easy & make it obvious,” as James Clear says.
While the customer waits for their package to arrive, I recommend sending a plain text, founder-led post-purchase email with a video.
In the video, there should be clear instructions on how to consume your product. If you sell a supplement, tell them how often they should take it, at what time of the day, with or without food, etc.
This simple, yet highly effective tactic does two things: it shows there’s an actual human behind your brand, and it gets the habit formation ball rolling.
Use Days 0-30 To Educate
The first 30 days is when you turn a skeptical customer into a long-term believer. One of the ways to do that is by re-purposing blog articles into bite-sized, educational email content.
You want new subscribers to understand the “why” behind consumption. If you have unique ingredients in your product, educate them on the benefits. Focus on the mechanism. If you can deliver the content series from an authority figure, like a doctor or physician, even better.
For example, Dr. Andrew Huberman is an advocate for LMNT, an electrolyte drink. When he tells people to delay caffeine intake in the morning in favor of salt, they’re more likely to comply.
Promote Habit Tracking
“If you want to stick with a habit for good, one simple and effective thing you can do is keep a habit tracker.”
People love streaks. I don’t know why, but there’s something about visually tracking your progress that makes you want to repeat the behavior.
There are a few ways you can implement this. One is by actually sending customers a branded habit tracker as a surprise gift with the order. You can also gamify the experience online with Tapp’s routine builders.
Perform Regular Check-Ins
“Knowing that someone else is watching you can be a powerful motivator.”
In Atomic Habits, James refers to these people as accountability partners.
7-10 days after their order arrives, send another founder-led email. This time, check in with them. Ask about the progress they’re making. Did they have any problems using your product? Are they sleeping better? Do they have more energy throughout the day? Encourage them to leave you a review and collect social proof.
Performing regular check-ins with the customer can be a great way to offer support.
Sell the Process, Not the Outcome
A major reason why many people fail to stick with a new habit is they’re overly focused on outcomes. I mean, it makes sense, a promised outcome is why they bought the product in the first place.
However, in e-commerce, especially among supplement brands, the benefits you promised in your Meta ads tend to lag behind IRL. Showcasing customer stories and testimonials about how others saw great results by consistently using the product is a great idea.
Remember, it’s not about pushing the idea of perfection. It’s okay to miss a day. But when you miss two days in a row, that’s another start of a “bad” habit.
Reward Progress With Incentives & Gifts
Heavy users are your brand ambassadors. For those who complete streaks, be it 30-day, 60-day, or 90-day, get them to share it with you. Reward them with unique offers. You can also collect before & after transformation images and use them in your ad strategy to acquire more customers.
“Savor the little victories as much as you criticize the little mistakes.”
And when it’s time for renewal, instead of saying “your next bill is due in 3 days,” say “your free gift is about to ship.” It’s about re-framing.
What’s Next
If your current retention strategy starts and ends with slapping a “Subscribe & Save” button on your product page, you’re missing out on a ton of revenue.
Use these tactics to increase CLV and build a customer base that sticks around because they love using your product, not because they forgot to cancel their next shipment.
