With these insights, the client was able to optimize their promotional strategy to focus discounts within the ‘sweet spot,’ increasing: AOV by 24%, LTV by 73%, and Retention Rate by 50%
By acquiring subscribers through a lower discount, the client saw that cancellations dropped and the average customer lifespan and revenue value increased overall because they were now attracting customers who were actually in market for their product, rather than attracting bargain hunters.
For proactive management of their discounts and ensuring profitable LTV, the client has leveraged Sublytics notifications to send email/text alerts when a promo code drives 200+ sales with a first renewal retention rate less than 80%.