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Subscriptions
Subscription economics: cohort behavior, order frequency, involuntary churn, and the unit math that makes or breaks the model.
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3 posts in Subscriptions
Your cohorts are getting worse and your retention team didn't do it
When each new cohort retains a little worse than the last and nothing in the lifecycle program changed, the customers changed. That is a media allocation finding wearing a retention costume.
LTV to CAC is a ratio. Payback is a constraint.
Two businesses with identical LTV to CAC ratios and different payback periods are not in the same business. Why payback, not the ratio, is what actually governs how fast you can grow.
The unit math that quietly kills subscription businesses
Your 3:1 LTV:CAC can hide an insolvent business. The model lives or dies on cohort decay and contribution margin, not headline averages.