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The global subscription economy is projected to reach $2.1 trillion by 2025.
Subscription businesses have grown 5x faster than S&P 500 companies in the last decade.
78% of adults worldwide now have at least one paid subscription.
The average consumer holds 5.6 active subscriptions.
32% of consumers say subscriptions now represent over half their discretionary spending.
69% of subscription companies reported positive revenue growth in 2024.
Subscription businesses have a 70% higher customer lifetime value (CLV) than transactional businesses.
62% of companies plan to convert at least one product into a subscription service by 2026.
54% of consumers think subscriptions provide better value than one-time purchases.
41% of consumers say they experience subscription fatigue.
73% prefer subscriptions because they offer predictable monthly costs.
65% say flexibility (pause/cancel anytime) is the #1 reason they subscribe.
49% subscribed because of low-cost introductory offers.
44% canceled because the price increased.
38% canceled because they stopped using the product.
57% say they would return to a subscription if offered a personalized discount.
29% of consumers have subscribed to something accidentally.
82% want transparent billing with no hidden fees.
35% try a subscription because of influencer recommendations.
27% upgrade their subscription within the first 3 months.
Average subscription churn rate: 5.3% monthly.
Top-performing subscription companies have churn below 3%.
Average annual customer retention rate: 72%.
High-performing SaaS subscriptions retain 90%+ annually.
The average subscription conversion rate from free trial is 24%.
Trials without credit cards convert at 14%.
Trials with credit cards convert at 43%.
Average customer lifetime value (CLV): $618.
High-ticket subscriptions reach CLVs above $2,500.
Subscription CAC (cost per acquisition) averages $72.
46% of subscription revenue comes from upgrades/upsells.
22% comes from add-ons.
Price increases lead to a 15% immediate spike in churn on average.
Annual plans reduce churn by 51% compared to monthly plans.
Annual subscribers are 2.4x more profitable than monthly subscribers.
61% of subscriptions offer at least three pricing tiers.
The most popular pricing model is tiered + usage-based.
58% of subscription companies run dynamic or personalized pricing.
Average subscription cancellation refund request rate: 12%.
Companies offering “pause subscription” reduce cancellations by 18%.
Email is the #1 conversion channel, driving 39% of new subscribers.
Paid ads drive 27% of subscription sign-ups.
Referral programs increase subscription growth by 18%.
Social media ads convert at 2.3% average for subscription offers.
Subscription landing pages convert at 5.8% on average.
Offering a free gift boosts sign-ups by 27%.
Flash subscription discounts increase conversions by 41%.
34% sign up due to “cancel anytime” guarantees.
Subscriptions using personalization see 28% higher conversions.
Retargeting ads bring back 21% of abandoned subscribers.
68% of churn is involuntary (payment failure).
Smart dunning recovery tools recover 37% of failed charges.
Personalized retention emails reduce cancellations by 12%.
Loyalty rewards increase retention by 19%.
Subscriptions with community features reduce churn by 23%.
Behavior-based messaging reduces churn by 17%.
Customers who use a product weekly have 85% higher retention.
Super-users (top 20%) generate 72% of revenue.
44% of cancellations happen within the first 90 days.
The average reactivation rate: 11%.
SaaS subscription ARPU averages $52/month.
SaaS subscriptions grow 18% YoY on average.
SaaS free trials convert at 29%.
Average SaaS gross margin: 78%.
SaaS companies lose $1.6B annually to involuntary churn.
72% offer monthly + annual plans.
Freemium models convert 4.2% of users to paid.
SaaS upsell revenue averages 32% of MRR.
91% of new SaaS customers prefer self-service sign-ups.
Most SaaS churn occurs within first 60 days.
Ecommerce subscription revenue grew 26% in 2024.
Replenishment subscriptions (e.g., consumables) have churn below 4%.
Subscription box churn averages 10–12% monthly.
48% of ecommerce subscribers choose delivery subscriptions for convenience.
Average subscription box value: $43.
Auto-ship discounts increase retention by 29%.
Cross-sells generate 22% additional revenue.
Subscription box unboxing videos drive 2.7x higher engagement.
64% stay subscribed because the products feel personalized.
Referral incentives increase ecommerce subscription growth by 31%.
Average household uses 3.2 streaming subscriptions.
Streaming churn is 6.7% monthly.
55% cancel when a show they like ends.
47% re-subscribe when a new season releases.
Bundling reduces churn by 34%.
Ad-supported plans now represent 31% of new subscribers.
62% choose plans under $10/month.
Family plans increase retention by 52%.
Streaming services with exclusive content reduce churn by 21%.
37% share subscriptions with someone outside their household.
Mobile subscription apps have a 4.8% average conversion from free trial.
Average mobile subscription churn: 9% monthly.
Subscription app ARPU: $8.41.
Push notifications increase subscriptions by 14%.
Introductory $1 trials boost conversion by 38%.
Weekly subscription plans churn 3x faster than monthly plans.
46% of users cancel via app store within the first billing cycle.
Fitness apps have the highest subscription retention.
Meditation apps have the lowest churn among wellness categories.
59% of mobile subscribers prefer annual plans when offered a 30–40% discount.
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Bill Nash is the CMO of Marketing LTB with over a decade of experience, he has driven growth for Fortune 500 companies and startups through data-driven campaigns and advanced marketing technologies. He has written over 400 pieces of content about marketing, covering topics like marketing tips, guides, AI in advertising, advanced PPC strategies, conversion optimization, and others.