Maximizing Your Subscription Model

Insights from Lisa Bratkovich, Founding Partner at The CMO Syndicate 

Subscription models may feel like a creation of the past two decades, but their roots run much deeper. As Lisa Bratkovich noted during her recent webinar, “Most people think subscription models were invented in the last 15 to 20 years, but they've actually been around much longer. Just think back to the old book and record clubs or even simple newspaper subscriptions.”  

Today, subscription programs are not only resurgent, they are a strategic engine for predictable revenue, stronger customer relationships, and increased company valuation. But the companies that treat subscriptions as “set-and-forget” programs often experience lackluster performance, damage to the brand, money left on the table, or all the above.” 

This blog distills the most important insights from her session, including the business case for subscriptions, the models that work, the pitfalls to avoid, and the case studies that prove the power of recurring revenue done right. 

Why Subscriptions Matter More Than Ever 

Consumer buying behavior continues to shift rapidly. Bratkovich highlighted that “by the end of next year, 75% of companies selling direct-to-consumer will start offering subscription programs,” driven by skyrocketing global demand.  

The financial rationale is equally compelling: 

• Predictable Revenue: Crucial for budgeting, production planning, and inventory forecasting. 

• Higher Customer Lifetime Value: Subscribers stay longer, buy more, and share more data. 

• Scalability: Recurring models are easier to grow than transactional ones. 

• Higher Valuation Multiples: Subscription-based businesses often command two to three times higher valuation than a transactional model. 

Yet Bratkovich emphasized that subscription programs work only when companies truly shift to a customer-centric model.  

“The goal is to develop a monogamous customer relationship with that subscriber,” she said. “What is it about your experience and benefits that will keep them subscribing to your program?”  

The Four Primary Types of Subscription Models 

Bratkovich outlined four dominant subscription archetypes shaping today’s market: 

1. Savings Model 
Best exemplified by Amazon, this approach rewards customers with discounts for committing to recurring shipments. 

2. Access-to-Content Model 
The Netflix or traditional cable model. Ongoing payment for unlimited content access. 

3. Curated Model 
As Bratkovich described, “Blue Apron is a good example. You’re committing to ongoing shipments of a curated product for variety.”  

Understanding these models is critical because your choice should reflect both your strategic goals and your customers’ motivations. 

Case Study: How Restoration Hardware Reinvented Its Business Through Subscription 

One of the most compelling examples Bratkovich shared was Restoration Hardware’s transformation. 

By 2016, the brand was struggling. Heavy discounting eroded revenue, damaged brand equity, and weakened loyalty. When the company announced it would pivot to an annual subscription program, replacing constant discounts with an exclusive paid membership, its stock initially fell 26%. 

But then the strategy took hold. 

Subscribers received 25% off all full-price items, 20% off sale items, and exclusive access to design services and preferred financing. And customers embraced it. 

Bratkovich highlighted the remarkable turnaround: 

• 95% of RH sales now come from subscribers. 

• By 2020, RH’s stock was up 320% since launching the subscription. 

• The program delivered $60 million in cash flow before shipping a single product, thanks to fees from 400,000 annual members. 

The strategic lesson? 
“It’s not enough to simply launch a subscription program,” Bratkovich cautioned. “Other retailers tried to emulate RH but weren’t successful because they kept discounting. Their programs were set up for failure.”  

A subscription must solve a strategic business problem, and must offer clear, differentiated value that makes the ongoing commitment feel worthwhile. 

Case Study: Reducing Churn for a Streaming Education Company 

Bratkovich also shared a client example involving a well-known education company whose churn rate was unexpectedly high. Despite decades of experience in direct-to-consumer marketing, their new streaming service was underperforming. 

A full audit of the customer journey uncovered issues across: 

• Pricing and plan design 

• Acquisition messaging 

• Brand positioning and value proposition 

• Onboarding experience 

• Cancel/save workflows 

• Communications strategy 

• Upsell/cross-sell 

• Account management and credit rules 

Once these areas were rebuilt, the results were significant: 

• 260% increase in active subscribers 

• 15-point increase in retention for new subscribers 

Subscription success rarely comes down to one fix, but rather the orchestration of the entire lifecycle. 

Six Components of Successful Subscription Programs 

According to Bratkovich, winning subscription programs share six characteristics: 

1. They solve a meaningful business problem. 
2. They offer a clear, compelling value proposition. 
3. They deliver a high-quality customer experience. 
4. They create or reinforce competitive advantage. 
5. They leverage best-practice strategy and pricing architecture. 
6. They execute flawlessly across operations, technology, and service. 

When programs fail, the root cause typically traces back to one of two areas: 

• A poor customer experience, or 

• Internal misalignment and lack of operational readiness 

Critically, poor customer experience carries the highest risk. As Bratkovich explained, “You can have significant damage to both brand reputation and sales.”  

The three areas where dissatisfaction spikes most often? 

1. Pricing and billing 
2. Cancellation experience 
3. Account management 

Surprisingly, billing, not cancellation, is where consumers report the greatest dissatisfaction. This makes operational precision as important as marketing creativity. 

The Bottom Line: Subscriptions Are a Growth Engine, Not a Pricing Tactic 

Successful subscription programs are not about discounts, convenience, or clever packaging. They are strategic business models that reshape customer relationships and create durable financial value. 

As Bratkovich concluded,  

“Although there's a variety of different things that need to be done, best practices across these areas are essential not just to run a subscription program, but to truly monetize it.”  

For companies looking to improve revenue predictability, increase valuation, and build deeper customer loyalty, the subscription model offers a powerful path forward when built and managed with intent. 

📩 Contact us here to learn more about how The CMO Syndicate can help you maximize your subscription model. 

🎥 Missed the webinar? Watch it here!