If you're running an ecommerce business on Shopify, chances are you've considered launching a subscription model. And if you haven't, well, grab a coffee and get ready to take notes because subscriptions are not just alive—they're thriving. In a recent episode of the Shopify 1% Podcast, Jay Myers sat down with Matthew Holman, aka the Subscription Doc, to diagnose common subscription pain points and prescribe the best remedies for success.
The Subscription Economy Is Booming (Yes, Even in 2025!)
Despite all the chatter about “subscription fatigue,” the subscription economy is still growing rapidly. According to a report by UnivDatos Market Insights, the global subscription ecommerce market is expected to reach $904.2 billion by 2026, growing at a compound annual growth rate (CAGR) of 65.2%. And here’s a Shopify-specific stat—subscription businesses on Shopify experience a 41% higher customer lifetime value (LTV) compared to one-time purchase businesses.
So no, subscriptions aren’t dying. They’re just evolving. And if you get your strategy right, you can build a wildly profitable recurring revenue model.
The Real Secret to Subscription Success on Shopify
Matthew Holman dropped some gold nuggets on what separates successful subscription brands from those struggling to survive. The key takeaway? It’s all about acquisition, retention, and experience.
1. Acquiring the Right Subscribers from Day One
Your subscription strategy starts with how you acquire customers. One of the biggest mistakes brands make is treating every customer the same. But the truth is, not all customers are created equal. Some will churn after the first month, while others will become your best advocates. So how do you attract the right subscribers?
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Offer multiple subscription options – Monthly, quarterly, and six-month plans work wonders.
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Use first-time incentives – Free gifts, discounts, or exclusive perks drive higher conversions.
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Educate customers before they even subscribe – Set clear expectations so they know what they’re getting.
2. Retention: Keeping Subscribers Happy (and Paying!)
Retention is where most subscription brands struggle. If your churn rate is high, your acquisition costs will eat up your profits. Holman suggests focusing on first-month experience and long-term engagement.
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Make onboarding exceptional – Send personalized welcome emails and educational content.
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Reinforce the value – Remind subscribers why they signed up. If you sell pet food, for example, emphasize the high-quality ingredients and benefits.
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Make it easy to manage subscriptions – Customers should be able to pause, modify, or skip deliveries right from their Shopify customer portal.
Brands that engage customers properly see huge improvements in retention. As Holman pointed out, 92% of subscribers visit their subscription portal at least once, so make that page work for you!
3. The Role of Upsells and Cross-Sells in Subscription Growth
The brands that are really killing it in subscriptions don’t just rely on their base subscription revenue. They increase average order value (AOV) by offering relevant upsells and cross-sells.
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Upgrade offers – Mid-cycle upgrade prompts can encourage monthly subscribers to commit to quarterly plans.
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Bundle subscriptions – Subscribers who bundle multiple products have significantly higher retention.
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Loyalty perks – Give long-term subscribers exclusive discounts or early access to new products.
One of Holman’s clients went from zero to 20,000 subscriptions in just three months by focusing on smart offer structures and upsells. The takeaway? Subscription businesses that strategically package their offerings and create tiered incentives will see much stronger growth.
Avoiding Common Subscription Pitfalls
Not all subscription brands succeed. So what separates the best from the rest? Here are some common pitfalls to avoid:
🚨 Forcing subscriptions where they don’t belong – Not every product needs to be a subscription. Ask yourself: Does this product offer ongoing value over time?
🚨 Making it hard to cancel – Nothing frustrates customers more than feeling “locked in.” Letting them manage their subscription easily actually reduces churn.
🚨 Ignoring post-purchase engagement – Your relationship with a subscriber doesn’t stop at checkout. Ongoing communication (without spamming) keeps customers invested.
🚨 Overlooking data – The best brands analyze churn rates, LTV, and buying behaviors to optimize their offers continuously.
The Future of Shopify Subscriptions
Subscriptions are evolving beyond traditional “monthly box” models. We’re seeing:
✅ More personalized and flexible options – AI-driven recommendations and dynamic delivery schedules. ✅ Bundled services – Think Apple One but for ecommerce (why don’t they have an Apple hardware subscription yet?!). ✅ Membership-driven models – Brands are adding VIP access, exclusive content, and community perks to subscriptions.
Your Subscription Prescription: Next Steps
If you’re serious about building a high-growth Shopify subscription business, here’s your action plan:
✔️ Test multiple subscription options – Monthly, quarterly, and prepaid plans. ✔️ Optimize your onboarding experience – Make the first month unforgettable. ✔️ Engage your subscribers – Post-purchase surveys, loyalty perks, and educational content. ✔️ Leverage upsells and cross-sells – Increase AOV and subscriber retention. ✔️ Track the right metrics – Focus on net dollar retention, not just churn.
If you want to learn more from Matthew Holman, check out his Subscription Prescription Podcast and follow him on LinkedIn and Twitter for daily insights on mastering ecommerce subscriptions.
The future of subscriptions is bright—so get out there and build your recurring revenue empire!
