Matt Collins discusses churn rates for Subscription Boxes.
To help you choose a realistic number, here are the retention rates and churn rates of a few subscription box businesses based on information that has been shared online:
According to this interview with Andrew Warner of Mixergy, one of the founders of Foodzie(selling monthly tasting boxes of artisan food) said they had average subscription lengths of6-8 months. That implies a churn rate of around 14% (and a retention rate of 86%).
BarkBox (selling monthly boxes of toys, gifts and treats for dogs) reportedly boasted a 93-95% retention rate in their first year. I assume that’s a monthly retention number. Taking the midpoint of 94% retention rate, that equates to a 6% monthly churn rate or an average subscription length of around 17 months.
UmbaBox (selling monthly boxes of curated handmade goods) reportedly claimed a retention rate of 90% (churn rate of 10%) a few months after their launch, with a not-insignificant $18,000 in monthly revenue. That’s equivalent to an average subscription length of 10 months.
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