Dose #136: How Acquisition & Retention Work Together

Al here with your weekly Subscription Prescription 💊

This week’s dose is all about aligning your acquisition and subscription efforts. We dive into how to think about acquisition, removing silos in your data, and offers that attract the right kind of subscribers.

This week’s dose also includes a full interview with Rachel Ricks, an experienced ad buyer and performance marketer. Tune in on your favorite platform.

The Gaps Holding Your Subscription Growth Back

Hello everyone! I’m taking over for Matt this week, and we’ve got a great dose lined up for you. My name is Al Salomon & I’m a retention lover & guru. I’ve worked at many DTC brands leading retention efforts from brands in the beauty space to supplements & everywhere in-between. Drawing from my experience and the experience of my friend Rachel Ricks, we discuss how acquisition influences retention for your subscribers.

Finding the Right Balance: Scaling Acquisition and Retention Together

If you’ve ever wondered how these two sides of the business can work better together to scale your subscription program sustainably, you’re in the right place.

Part of the problem with many teams is that acquisition is the driving initial force, and retention is left to drive additional revenue.

However, when retention and acquisition work together, you can craft offers that have a strong impact on retention for your subscribers.

So let’s dive in!

1. Start With the End in Mind: Acquisition Shapes Retention Success

Acquiring customers is one thing, but acquiring the right customers? That’s the key to making retention a whole lot easier. Here’s why it matters: if you’re constantly bringing in discount-dependent shoppers during major sales like Black Friday, your retention team is left juggling a customer base that only shops at a discount. That leads to higher churn and less predictable revenue.

Instead, think about who your perfect customer is. Are they buying because of the brand's quality or convenience? If so, acquisition tactics like bundling or offering value-driven deals (e.g., "buy one, get one half-off") can attract shoppers who care more about long-term value than quick savings. Once you identify these patterns, you can align your acquisition strategy to fuel retention success.

2. Shared Metrics: Stop Siloing Data Between Teams

Retention and acquisition teams often operate like two ships passing in the night. But when teams don’t communicate, you lose out on valuable insights that could be helping both sides thrive. For example, knowing when customers typically make their second purchase or how Average Order Value (AOV) evolves over time helps both teams optimize their strategies.

Cohort analysis is a game-changer here. By tracking cohorts (e.g., customers acquired via direct mail vs. paid social), you can measure retention rates, repeat purchase behavior, and lifetime value. This data arms your acquisition team with insights to target better-quality customers while giving retention the tools to keep those customers engaged.

3. Creative Over Discounts: Attract Buyers Who Stick

Discounts are the low-hanging fruit of acquisition, but they often train your customers to expect sales before making a purchase. Instead, get creative with your offers to build stronger customer relationships right out of the gate. For example:

• Offer free shipping to first-time buyers if it’s not already included.

• Promote bundles or subscription offers with a clear value proposition.

• Highlight “hassle-free returns” as a guarantee of trust and quality.

Your first offer sets the tone for how customers will interact with your brand. A creative, value-focused approach not only appeals to more loyal buyers but also supports healthier margins long-term.

Here are examples of offers that go beyond the discount:

• Humann rewards subscribers for buying more at a time.

• Yo Pretty Boy gives away a free cleanser to quarterly subscribers.

Your Prescription for Success

If you take one thing from today’s insights, let it be this: acquisition and retention are two sides of the same coin. Align your teams, track the data that matters most, and focus on attracting customers who stick around.

Stay tuned for the next dose of Subscription Prescription next Tuesday!

 - Al Salomon 🩺

An Interim Subscription Doc