Dose #145: Making Your Subscription Stickier

Matt here with your weekly Subscription Prescription 💊

What does Amazon Prime, gyms, telecom companies, and movie clubs have in common? They’re all based on recurring revenue models and depend on members for that revenue. In this week’s dose, we dive into how these businesses make their membership models sticky - and what you can take from them to build up yours.

This week’s podcast goes a little deeper into some of these membership models. Listen or watch on your favorite podcast platform:

Welcome to another dose of Subscription Prescription, where we break down the strategies that help subscription businesses grow and keep customers around longer.

This week, I’m looking at some of the most well-known subscription and membership programs—what they do well, where they fall short, and what lessons you can apply to your own business.

If you’re trying to get more subscribers and make them stick around longer, here are three key takeaways from the best (and worst) subscription models out there:

1️⃣ Give customers a reason to stay engaged.
2️⃣ Know your numbers so you can use pricing and perks strategically.
3️⃣ Enhance your subscription’s value beyond just discounts.

Let’s break it down.

1. Give Customers a Reason to Stay Engaged

One of the best examples of a sticky subscription is Cinemark’s Movie Club. It’s a simple model—you pay a monthly fee (equal to the price of a single movie ticket) and get a ticket credit, 20% off concessions, and waived online fees. If you don’t use a ticket one month, it rolls over to the next.

Why does this work? Because it keeps subscribers engaged, even when they’re not actively using the service. If you go to the movies even semi-regularly, the membership feels like a no-brainer. And even if you don’t go for a few months, the tickets stack up, making you more likely to come back and use them later.

For subscription brands, this same principle applies:

• Can you create a perk that encourages subscribers to keep coming back?

• Is there a way to let unused benefits “roll over” so customers feel like they’re getting continued value?

• Are there incentives that make your subscription the default choice over competitors?

The more reasons you give customers to engage with your product or service regularly, the longer they’ll stick around.

2. Know Your Numbers So You Can Use Pricing and Perks Strategically

Gyms are a great example of a business that gets people in the door with a low price but makes money through strategic pricing structures.

Many gyms advertise a $10 monthly fee, but that price is often just the starting point. Want to access multiple locations? That’s extra. Need a sauna or pool? Upgrade to the $20/month plan. And then there’s the annual membership fee—a hidden cost that kicks in after a few months, driving up the true cost of membership.

Now, I’m not saying you should hide fees from your customers, but understanding customer behavior and pricing psychology is key.

For example, if you know that a longer subscription commitment leads to higher retention, you can:

• Offer an entry-level plan that encourages upgrades over time.

• Use annual fees or memberships to capture more upfront revenue.

• Design pricing structures that encourage customers to spend more while still feeling like they’re getting a great deal.

The key here is that gyms, telecom companies, and other membership-based businesses know their numbers inside and out. They understand how long customers stay, what features they’re most willing to pay for, and how to design plans that maximize revenue per subscriber. If you’re not tracking these things in your own subscription business, you’re leaving money on the table.

3. Enhance Your Subscription’s Value Beyond Just Discounts

Think about Amazon Prime—it started as a way to get free two-day shipping, but now it includes Prime Video, exclusive deals, music streaming, and more. Over time, Amazon kept adding value to the membership so customers wouldn’t think twice about renewing.

The best subscription businesses do the same:

• Streaming services release new exclusive content to keep people subscribed.

• Telecom companies offer device financing and family plans to make switching harder.

• Some eCommerce brands bundle exclusive perks like free shipping, early access, or members-only products to increase perceived value.

If your subscription’s only value proposition is a discount, you’re making it easy for customers to churn the moment they feel like saving money. Instead, think about what else you can offer that makes your subscription feel essential.

A few ideas:
✅ Exclusive access: Members-only products, early drops, or special perks
✅ Content and community: Private groups, expert Q&As, or exclusive guides
✅ Convenience upgrades: Priority customer service, flexible shipping, or “pause instead of cancel” options

Discounts can be a tool, but the real goal is to make your subscription feel like something customers don’t want to lose.

Final Thoughts

The best subscription businesses don’t just rely on a good product—they design sticky experiences that keep customers engaged, maximize revenue, and make the subscription feel like an obvious choice.

If you want to make your subscription more effective:
1️⃣ Give customers an ongoing reason to engage with your product.
2️⃣ Know your numbers and design pricing structures that drive higher revenue.
3️⃣ Add more value beyond discounts to keep subscribers from churning.

Got a subscription model you want me to break down? Reply to this email or send me a DM—I’d love to dive into it.

Stay tuned for dose #146 of Subscription Prescription next Tuesday! 🚀

 - Matt Holman 🩺

The Subscription Doc