The Routine Economy: Subscription Retention with Jen Gray

Building Brands Around Best Fit Customers

0:00our core belief is that the best Brands build their businesses around their best fit customers you have to leverage

The Importance of Routine and Subscriptions

0:05routine you have to leverage routine you have to figure out what their daily life looks like you have to leverage subscriptions and you have to build a compelling subscription experience that goes through the entire customer journey through conversion our friend Brian did a really great job here through retention through growth really understanding the entire journey and how routine and subscription experience fits into that [Music] for our final education piece Jen please

Introduction by Jen Gray

0:32join me on the [Applause] [Music] stage the stage is a little bit more pants friendly than it is skirt friendly hi everyone it is great to be here I am Jen gray and I'm the SVP of marketing for recharge and recharge Powers subscriptions and retention for routined driven Brands and that's what we're going to talk about today we're going to talk about the psychology of routine and how to tap into that like Taylor said it's [ __ ] rough out there right like investor investing funding is low the the margin of error for a brand that makes it is super super slim so we're going to talk about how to leverage routine to be a brand that lasts so earlier this summer I was talking to a brand who had just come off of these rounds of investor calls right

Understanding Ideal Customer Profiles

1:22and the number one question they were asked was who is your ideal customer profile and I love this question because investors get so much out of this I come from Big Tech I don't come from e-commerce I come from companies like qualx and Adobe and our series like raises from series a through series D this is the question we were asked because it's a sneaky way for investors to get a sense of How High your ceiling is like how long you're going to be around and how long can you sell to these people and more importantly how low your floor is what a what a risk you are when investors ask this question they get a sense of well who is your ideal customer profile I.E how healthy is your go to market motion how efficient is this right are you wasting money on people that will probably never purchase or purchase once and never return or are you having a really healthy go to market motion that's efficient and that will pay for itself

2:13over time they're getting a sense of what your Tam is how long you can sell your Tam and the longevity of your Tam right and they're getting a sense of how well is product diversification going to work for you right if well the more you know your customer the better you have this chance of sort of selling many things to to them and they get a sense of your Healthy business right your ideal customer profile is typically your subscribers they get a sense of how healthy a que of repeating business is for you and they get a sense of sort of your CAC and your LTV ranges your gross margin and what your Healthy competitive positioning is and your competitive Advantage you get so much value out of knowing your ICP right it sharpens everything in your business it sharpens your marketing I mean I'm a marketer so I'm biased but it sharpens your marketing it sharpens your your messaging and it makes you a healthy repeatable business right it helps you guide product development and for

3:07routine driven Brands again this is subscribers so recharge just hit 100 million subscribers this spring over all of our Brands and what we found was you might take a hit on first time aov on a first purchase but for subscribers over time they become more valuable over time that gaps keep that Gap keeps getting bigger so even though you may get a hit on one time aov for a subscriber they're going to pay for themselves a couple times over and that Gap keeps getting bigger the longer that they're subscribed so your ideal customer profile I have taken many teams through this exercise before like we call these Persona cards and marketing how many of your teams have walked you through an exam like an exercise like this anyone ideal customer for yes they typically look something like this right we call them funny things like techsavvy Tech and busy Bonnie right we're going to call this one juggling Jen because your girl is juggling a lot but these Persona cards typically focus on things like

4:10demographics who your customers are it doesn't say anything about what they want what their behaviors are so let's

The Psychology of Routine

4:17break this down for juggling Jen I am an elder Millennial I hate to break it to all of you if you're a millennial but Millennials are considered solidly middle-aged right now I know I'm I'm middle-aged it's hard to take enough of that so I'm already concerned about what time and gravity are starting to do to my body I live in Salt Lake City so my skin is constantly ravaged by the dry Desert Sun it's very refreshing to be in San Diego it's very humid it's very nice I work for a very busy tech company so your girl's a little Haggard and I have a very moody and very busy teenage daughter who is just as busy as I am minus the ability to drive herself anywhere so I'm in a car almost my entire life so the older I get the less time I have time by far is my most precious resource because there just isn't enough there isn't enough to accomplish all the things that I want so this means that I am fanatical about my

5:18routine I am fanatical about my routine because my routine is my ability to get all that I want out of my aday right I want all of the little moments of Joy I want all the structure I want all the benefits without having to think too hard about it right I want to spend as little time thinking about my day and the little decisions I have to make as possible bottom line I am busy I am bougie and I hold majority purchasing power for my household and I am I am an ideal consumer because I love a good product and I love a good product because I love the brand promise that's actually what I'm purchasing I'm not purchasing products I'm purchasing your brand promise of better skin healthy hair a seamless morning routine right I'm buying your brand promise and when it doesn't take a ton to acquire me as a customer in fact if you were just to kind of Target me with a good Instagram ad like there's a 90% chance I'm going to try and I'm going to

6:14purchase it but the question is will I return will I subscribe will I add this to my routine I don't know when my Instagram looks like this and my YouTube which I watched this morning while I was getting ready looks like this right build the ideal Wellness routine build the ideal morning skincare routine wake up before i. am here's why I am constantly chasing the dragon I am constantly chasing what's going to get me to my goals is easily and quickly as possible fear of missing out drives Millennial experiential Behavior I think something like 75% of Millennials experience fear of missing out and it drives us to show up it drives us to a purchase it drives our purchasing decisions and this choke hold of missing out has really it led me to a lot of things this year so in the last year I have tried nine different sunscreens and it looks like a lot of you need some sunscreen so if you ping me after I will send you some sunscreen the sun is

7:20intense out there I have tweaked my skincare routine 14 different times I have switched from tea to Coffee to matcha to back to tea and now I'm dabbling and no caffeine just sort of just G raw I am really I've tried every protein vehicle out there I've tried the chips I've tried the cookies I've tried the donuts the Pop-Tarts supplements are my new thing cuz that's like the Pinnacle of convenience and value right is just something in the morning quick and easy I have tried five different meal pan services and I've tried well two different cat litters because once you find a cat litter you love you're not really looking to to improve that that's not really a dragon I'm chasing pretty happy with pretty litter so I want to reach my goals as conveniently and easily as possible and this has resulted in something interesting in consumer Behavior this has created a very large distinction between a product that is bought and a product that is kept so I want you to all think about

8:18your bathroom at home because the bathroom hierarchy really tells all the bathroom hierarchy is the difference between a product that is on the top of your counter next to soap that you use every day and the products that you try once and sort of like slot underneath the bathroom sink next to toilet paper right that is the difference between a nice to have and a need to have and your ability to be a product that is bought versus kept all relies on your ability to understand take action on the routine economy so let's take a step back for a second and talk about where we're at right now all of a sudden The

Millennials and Gen Z: Economic Drivers

8:5340-Year-Old Millennial and the 24-year-old ginier are in charge they in charge in spending and influence in the economy Millennials have become the economic driving force in America they are the largest generation they make up the biggest percentage of the country's Workforce and they hold the most purchasing power and we're we're middle-aged we're very middle-aged and I'm finding this to be a really fascinating two sides of one coin is genzi and Millennials so in terms of the economy Millennials I think the collective annual income of 1.8 billion millennials is what is it $2.7 trillion and is expected to reach $4 trillion by 2030 Millennials hold the purchasing power for the economy whereas gen ZZ they're really the consumer influencers they're they're influencing spend they're seen as The Taste makers for this generation right this is the role that every generation at this time took on I remember when this was Millennials and now we're chugi and we're we we wear no show socks which I guess isn't cool but basically jenzy tell us what to buy

9:59and Millennials buy it now in terms of their priorities so every single generation Millennials and genzi I think it was 34% of Millennials and 28% of genz report to having financially supported their family members Millennials specifically work in what we call our sandwich era where we're trying to get enough protein in the day while also raising children and taking care of elderly parents we have responsibilities we have responsibilities that Loom large whereas gen Z there was a survey done on how much people spend on their pets every year and Jen Z spends an average of $2,000 a year on their pets which was more than any generation surveyed so both of these Generations are coming to the plate with responsibilities with things they have to take care of now in terms of their of what they value both Generations experience or value experiences excuse me being in the social media World they they they value experiences over anything else Millennials are willing to splurge on experiences they're willing to splurge on those social media worthy moments

11:03whereas Jen you really are looking for value they're looking for bang for their Buck they're looking for really making sure that their their their dollar goes a long way now in terms of their expectation Millennials are probably the last generation we'll see that is truly brand loyal cuz we like consistency we like things to show up when we want it to show up and we like that it's going to show up in the same way that it does every month right where gen Z really prioritize variety they want variety they want Niche they want hard defined products they want things that are really unique as part of their identity now in terms of their overall disposition it's anxiety it's anxiety all around it's anxiety for Millennials it's anxiety for Gen Z 81% of Millennials and 75% of gen Z report to having experience Financial anxiety the American Psychological Association actually did a survey with 61% of Millennials and 51% of genen Z experiencing workplace stress so both of these Generations are showing up again

12:05with a huge amount of anxiety in their day now this anxiety is key this anxiety is key because what does this lead to impulse spending Behavior I think it's 52% of Millennials and 44% of gen Z admit to making impulse purchases to alleviate stress so both Generations are choosing to spend their Dollar on things that elevate their every day these are things that you can control this is my routine right routine sits at the intersection of this is spending I'm spending my Dollar on things to elevate my every single day routines are something again we can control this is little treat culture we see this all over social media of I went to the grocery store I deserve a little treat I did my taxes I'd get to go to Starbucks and paid $9 for Macha latte right these are things that are elevating our every single day for younger Generations financial goals like buying a house and investing in the future like 401K who is she can seem sort of Out Of Reach and so

13:14Millennials are really spending their money to soothe their economic despair it's rough out here it's rough out here all along whereas gen Z are really embracing this mentality of what really matters anyway jenz are really starting to face this disenchantment on capitalism and society as a whole and they're choosing to spend money on things that elevate their everyday rather than traditional markers of success right and they're they're using this as an opportunity to prioritize personal enjoyment and they're indulging in luxury as a means of self-expression and finding moments of joy in an increasingly complex and Dark World so what this means is that the economy is yet again changing when we first started in a

The Routine Economy

13:58goods and services econ we were all fighting to avoid commoditization right the internet was the greatest force of commoditization in the world because all of a sudden I could go online and compare product to product immediately and this drove everyone to care about three things and three things only price price and price so D this was really the rise of DDC Brands DDC Brands could all of a sudden create onetoone direct relationships with their consumers they could own the end to-end experience they could own product development they could build onetoone relation ship and dictate that entire brand experience for those buyers but then we move to the attention economy right you all prioritize digital experiences because that's where your buyers were that's where we were that's where we were spending time but then all of a sudden attention became commoditized attention became the rarest commodity in the economy because there just isn't enough to go around again nine different sunscreens right I am constantly bombarded by my choice and the attention economy has proven to be expensive you all know this

15:01like you're heading into Black Friday Cyber Monday your acquisition costs are getting high in in the attention economy like do you remember when the demure and mindful Trend took hold I had like 25 emails at that day of like very demure very mindful that day Demir and mindful so now is the chance for us to evolve to the next level of economic value evolve or perish in order for you to survive in today's world you have to be embedded in the daily lives of your consumers it's no longer enough to have a great product it's no longer enough to go viral you have to figure out how to be embedded in the daily life and you have to figure out how to sit at the intersection of convenience and value for your buyer but I have some good news every level of economic disruption is hard and has been hard goods and services attention economy this one gets a little bit easier because people care about their routines right now I we have never seen people caring so much about their

15:56routines the entire societal Zeitgeist has risen up to meet this need these routines I am a huberman Labs podcast listener I love huberman labs and I actually was listening yesterday and he's coming out with a book called protocols because that's all people [ __ ] want they just want to know should I cold plung should I not they want to know if I should mouth tape or should I not they want to understand the products and the supplements that are actually working is it n n NAD is that one is it is it probiotics is it green juice right people care about these things in their lives because they want to elevate their everyday life [Music] routines really are the invisible scaffolding at the end of the day Millennials and jenzy have goals we have big goals and the only way we can achieve those is by having a steady routine that sort of sets up our our lives for Success it's the invisible scaffolding so we've established that we're living in this routine economy

16:47let's talk a little bit about how to leverage this for your specific Brands so my very first one of winning

Winning in the Routine Economy

16:54in the routine economy is product diversification this is my favorite so again I came from Tech so the whole Tech blueprint was that you started as one type of software for one type of buyer and then you started to eat up more pieces of their routine right I I did a brief stint at a dental company and they started as appointment reminders for dental offices then they started to figure out how to own online forms and then they started to own appointment reminder or sorry excuse me payments right this product diversification is such a great strategy cuz what better way to be embedded in somebody's routine than by owning their entire routine now I love this option too I think a lot of recharge brands do this very very well they figure out what

Identifying Your Core Product

17:38their tip of the spear product is so let's say for a ray it's their bloat pills they're amazing bareface it's their toning pads also chef's kiss and it's a great way for them to say okay well you've been loving this product for a while why don't you try our vitamin C like oh I already have six vitamin C's but like sure I'm going to try that one right figure out your product diversification strategy figure out your tip of the spear product and then what products you're going to recommend after that if you don't have a replenishable find a replenishable in your business tushi is a great

Expanding Product Categories

18:11example of this so tushy sells bedet and how many times do you buy a bedet in your lifetime I think once I don't know someone needs to tell me if I need to renew that but they instead created replenishables they started selling toilet paper and they started selling candles they started thinking about their category outside of being a bedet company as a bathroom as a category and that leads me to my next Point winning in the routine economy

Winning in the Routine Economy

18:35figure out your damn category figure out your category Casper is my favorite example of this they were a mattress company and again how many times do you buy mattress in your lifetime probably a couple times right all of a sudden though they decided to to evolve into a sleep category they wanted to own your entire sleep routine so all of a sudden I wasn't looking at Casper in terms of a mattress purchase I was thinking about Casper as a way to get my sleep at night and so I added the glow lights to my my my nightst stand so I could wake up nice and gently right I added the pet beds the cooling sheets I started thinking about my routine in terms of this company now this one's my next favorite is product positioning so I come from

Mastering Product Positioning

19:19product marketing again so I'm biased but I love product positioning and now after I show you this I hope that you guys can look at all of the websites you interact with and go to their product drop down and figure out how they're positioning their products it matters product positioning is how well somebody can see their challenges and problems in your product and the biggest challenge I see for Brands is transitioning from what do we do versus what do we do for you so let's take lemon as an example here so I go to lemon and I go to their product drop down and I can search for let's say leggings right this assumes this type of product positioning assumes that I already know what I'm looking for and Lululemon would be right because I am looking for leggings but then when I click on leggings they all of a sudden have to differentiate and tell me why their leggings are better than any other leggings why they're better than set active leggings right why they're better

20:11than what's another brand adanola leggings right you have to get into a feature battle and they've done a good job right they've differentiated based off of their Fabrics they do a line they do Wonder Trin or you can make it easier for your consumers to see themselves in your products so if you go down here to the bottom they've also done it by activity so all of a sudden I'm looking at L lemon and I'm like M I'm dabbling and running I travel I like tennis right and I'm exploring their product category catalog in a different lens based off of what's important to be based off of what's important and what my goals are so let's shift to subscriptions

The Power of Subscriptions

20:52cuz that's what recharge does if you have a subscription routine based brand you have to do subscriptions like especially if your product requires usage to see benefits like our friends at vegamore you have to use vegamore for at least 3 months before you see results you just have to and so of course subscription spins into that if you are a type of brand that requires that type of ongoing usage make subscriptions the star of your show right vegamore has done a great job here there's a subscription CTA in the nav they've done a subscription benefits page and they advertise the benefits of switching into a subscription for each product so you can kind of understand and see routine is ever changing our friends at ARR understand this providing optionality on the frequency I want optionality again we hit 100 million subscribers last spring and you know how many people changed their their their subscription or alter their subscription in some way 53% 53% of 100 million people altered their subscription in some way during

21:53that time period because they require optionality so raay done a really good job here where you kind of figure out if you want a 3month delivery a two-month delivery a one month delivery but here's the catch that I think aray does very very well they advertise the benefits of subscription for using for 2 months so like 86% of participants felt less blo and discomfort after 2 months of usage 74% of participants reported less IBS symptoms and gas uness based off two months so you understand the benefits of subscription and you understand what type of frequency you should probably be ordering in

Balancing Convenience and Value

22:30now do you remember the convenience and value right con convenience and value youve got to say the intersection because we are busy and we are bougie a lot of subscription offerings Focus too much on the convenience aspect right let's just provide a 15% discount let's make this nice and easy nice and easy purchasing decision let's just make them not have to worry about having to reorder this is just auto ship it's just convenience the best brands on recharge are doing the value piece very very very well where I am definitely getting the rewards of having convenience of things shipped to me but I'm also getting like a little treat I'm getting like a little reward or I'm getting some fun packaging or something or a special discount I'm feeling part of the club I'm getting these little moments I'm getting these little moments these little treats so we think about brands that build in rewards a really robust reward system whether that's Milestone based rewards whether that's punch card whether that's credits or cash back we find a lot of the brands

23:26on recharge like have quite bit of flexibility in what works for their brands but having some sort of way to build in some value for people has been really critical so our core belief is that the

Leveraging Customer Insights

23:37best Brands build their businesses around their best fit customers you have to leverage routine you have to leverage routine you have to figure out what their daily life looks like you have to leverage subscriptions and you have to build a compelling subscription experience that goes through the entire customer journey through conversion our friend Brian did a really great job here through retention through growth really understanding the entire journey and how routine and subscription experience fits into that and we promise it pays off I know recharge pushing subscriptions groundbreaking but it does pay off we know that this pays off and it Nets out in gmv over time we talked to so many Brands we were talking to one last week that does I think it's like 10% of their their checkouts are on subscription but their LTV of their subscribers is seven times more valuable than their onetime purchases so we were like if you could just tweak that 10% by like I don't know an additional five of your subscribers that Nets out an insane amount of gmv

24:36over the next year and this matters because it's sustainable Revenue back to what we were talking about Investors you have to have a healthy queue of business to make it in today's economy and the difference between sort of one time and then Revenue that you're going to count on month over month over month over month and forever that's a big difference for you in your business and so for us that's our goal at recharge is to give you tools that kind of mapped every one of these milestones we understand cancellation prevention we understand rewards we understand sort of what these little pieces are for every brand depending on who your consumer is and what type of product diversification strategy you have and what your goals are as a company and with that I just wanted to show a quick video about how brands are elevating the everyday lives of their consumers all right let's do this today is your day well maybe not entirely yours but you're going to own it because you've got the power the

25:40power of your routine it's the small things that supercharge you your daily rituals give you the confidence and endurance to tackle whatever the day might have in store because life can ask a lot of you but that's okay when you return home home your routine has your back it keeps you grounded so you can focus on what truly matters a great routine catches you at the end of a long day all the brands you love right when you need them the best brands are powered by routine and the best routines are powered by recharge so you can rise shine and embrace today and tomorrow and the day after that you've got this [Music] that's it everyone thank [Music] you [Music] it's any questions for the one the

Q&A Session

26:50largest recharge section questions comments you ready you got hand [Music] hands I I speak can you guys hear me sweet okay so you're talking about you mentioned a brand that had 10% right in terms of their wor 7x compared to a normal customer and ways that you're seeing Brands acquire customers for subscription besides first month free or subscription management to retain what are other ways that people get can get creative to acquire customers cuz everybody wants everyone on a subscription but now we're all realizing we have 50 different subscriptions we're trying to get rid of them so it's like what are you seeing the top brands doing that's different to to really get them to that point yeah for sure so I think one of the best sort of lwh hanging fruit that we're finding so rechar just came out with the wiback product like we're finding most of the brands that are in recharge have S to8 X inactive subscribers than they do subscribers meaning you you reeled them in at some point like they they were

28:03excited about their brand promise they didn't want to bloat anymore at some point and probably didn't fix all of their problems when they decided to cancel right and so figuring out based off of what their cancellation reason was or what the offer that they clicked on originally was you can Target them with a win back offer okay secondary question how do you see or do you see Brands using giveaways as a way to retain business or acquire business without having to double down on discounts or have you seen anything in the giveaway space that I guess promotes retaining customers and getting new customers through that type of language or avoiding discounts in that way say that first part one more time giveaways so I'm I'm curious about how you see the impact of giveaways on subscription and and what you've seen through all the recharge customers that you guys have yeah so it's interesting I think the way the way that we built the platform was a little bit flexible that you could figure out an AB test based

29:04off of whether you wanted to provide an offer a free gift or what have you I mean we're seeing a lot of subscribe and save up up front because it's just an easy way to get people into the funnel and then gifts being saved later so like I think that it takes like 90 days to solidify a habit we're finding a lot of the order drop off between being order three and order four and so a lot of the brands that we see are like using and saving the free gift or the free offer for once somebody's already in the in the funnel and already a subscriber just to help pay for that that cost but then there's some Brands like aray and they kind of do it all like there's a subscription you get a free like L glutamine on every subscription they provide all of the benefits beyond that but there's also a lot of brands that do like based on cancellation offers they we have people test like a

29:54discount a free gift but I think for a lot of the brands like I think one of them as an electrolyte company we work with they just decided to do a different flavor they were just like okay well let's maybe not give something for free or give a discount but it's like someone's cancel because they have too much product let's like give them a different flavor of something that's focused more on like sports Health rather than like daily hydration to kind of helps to plan that yeah that's great I guess just high level hearing what Taylor was talking about earlier and what you're talking about seems to be a direct correlation to I've got it on my list I was like talk to [ __ ] Taylor later cuz I think what's interesting is like I I came from Tech 2011 all tech companies switched to subscriptions like that's what they figured out that's how they figured out how to get their 10 to 20x valuations because subscriptions in a recurring healthy queue of business was what

30:41differentiated them between a a brand that lasted and a brand that didn't this is what gets me really nervous about this because I'm I'm trying to harp on my paid acquisition team and going hey I want to run a subscription only funnel I want to do kind of what like the mushroom brands do where they do a welcome offer but if you get a new customer in pure subscription through a welcome offer I'm just nervous about the value of that customer over a long period of time have you seen some of your Brands and it might be like the rise mushroom group or a couple other those like welcome offer subscription the only way you get it is by subscribing have you seen any difference of quality or or LTV of those that are just taking the welcome offer versus the ones that are upgrading into subscription at all oh yeah I mean once you get in and you you canel up with the first order your LTV is not that great so you got to look at that too you

31:32got to look at sort of what the what the percentage of subscriptions that your goal is and then what's your next order like that that's kind of the next metric we got to look at is like okay you got subscriptions you want to get up to 10% wonderful let's not make you bankrupt where are you seeing the most order drop off and we got to figure out how to Target order three order four order five depending on the cohort analysis that we do with Brands because I it is true exactly what Taylor was saying like you've got to balance like we you've got to balance margin with the offer and you can spend more on subscribers but like they're a little bit fickle like I am but we're really starting to see brands that understand an AB test like okay maybe I don't want to give 15% or 20% off to save a client but if they're going to opt into maybe an annual subscription I can bump that [ __ ] discount up to 30% right so

32:21really thinking about how to balance sort of your profit and your pricing too to make sure that it like it's compelling for the person but also compelling for your business yes we're literally going through this right now cuz I'm like do I need to go buy a bunch of in our case Koozies or sleeves cuz I want to incentivize a gift rather than a discount so we're going through this whole financial table across us this is more of like a selfish because no one else has questions and like this you don't really get a lot at this time so I will say do I want to send my reminder for subscribers to stay from clavio from my S Lan or from the actual subscription app that I'm using this is a spicy question this is a spicy question and it's something we've actually thought a lot about because I think there's a lot of email tools and text tools that are specifically focused on marketing yes and acquisition and once somebody's in the funnel and you're engaging with them

33:09you're you're kind of marketing to them I mean you're in Market it's customer marketing right but it's different there's a lot of those flows that we're kind of considering bringing back into recharge just so that it has like a slightly different lens and feeling for like you said like those funnels that are specifically catered to people that are already in and bought and happy that you want to then upsell and grow at least I mean tools aside those really have to be two separate motions as you think about it customer marketing versus acquisition marketing just cuz it gets me near CU like am I sending a notification through like the at in recharge or is it from my at my core domain like those are areas like am I inboxing correctly are these going to hit them at the right time like those are the things that I'm I'm trying to get a good understanding with but if it's I guess if I'm what I'm hearing from you and please correct me cuz I

33:56guarantee I'm wrong I'm I'm going to send it from my current system I'm using whether it's the email correlation cuz that's what my customers are used to getting that's what's already inboxed it kind of depends like we we see across the board like there's a ton of recharge Merchants that use just in stick with clavio and we've got a really robust integration but we actually I was surprised I think one of our our head of product messaged me about how many texts we send from just recharge SMS and I was kind of blown away so people are still using SMS and email specifically for their subscribers with recharge rather than using clavo but kind of depends I feel you anybody else on any questions before we let it go oh in the [Music] back I'm going to walk over there if anyone has questions about the top sunscreen I'm also feeling those questions as well not a subcrew question now I meant to ask Brian earlier in terms of keeping people from

34:53unsubscribing offering a gift offering an extra discount are we sort of incentivizing bad behavior because if I'm a subscriber and I'm going to cancel and then they go oh we'll give you a free something then I'm just going to wait the next time and I'm going to threaten to cancel again so how do you overcome that without training the consumer and is there a membership benefit Advantage for subscription programs to maybe offset giving a discount or a freebie yeah so when we hit million subscribers this spring we were like okay [ __ ] what's next like how do we help Brands retain these subscribers so we came out with like a suite of retention tools and one of them being was cancellation prevention and the goal there was to make sure that we could sort of intercept based off of the cancellation reason with some sort of gift or some sort of offer right but what we wanted to add to kind of mitigate that was you could also dictate the offer based off of LTV or spend so

35:49if somebody was spending a lot with your brand you could be like I want to give you this and if one person hasn't spent very much it's like well I maybe only want to give you this or or nothing at all depending on what your C LTV ratios look like so so does It capture that and monitor that customer and they're like this guy only takes advantage of your offers yeah and flag them in some way I'm actually not positive but I do know that there's kind of like a segment within recharge for bargain hunters that you can kind of understand if somebody's in and out pretty quickly that can be a segment that you target a little bit differently and don't offer certain things too yeah we we have this on we do this on our side we have to kind of do it manually there's no real perfect solution for any of the tools that we're doing but it's basically anybody that activates or purchases off of discount specifically take the

36:35welcome that has taken the welcome offer and is only buying on limited release or some sort of promo it's just that's like that segment I have in clavio sen lane and then when I have to upload it I'm either suppressing this cuz sometimes I'm going to hit the list but I don't want they're only going to take action on discounts but I don't want them opening is just going to ruin my overall rate so I do think you have to segment these ones out and that's what I was nervous about I was like if I'm going to run an acquisition offer I don't want them grouped in with my general incredible subscribers that are giving me gnarly LTV so I I I see where you're coming from this and our brands are starting to get really creative with this like symbiotic is one of my favorite Brands I love symbiotics products oh yeah they do this very well because they offer a discount based off of subscriptions beting on a subscription and then they it it bundles

37:19based off of like are you doing one subscription for like the liposomal vitamin C or the glutathione like you can keep adding and getting a bigger discount cuz they're incentivizing a subscription they're incentivizing a right habit rather than just sort of the first time offer Jen thank you very much for your time [Music]