Scored Decisions · DTC subscription

Offering the win-back discount to 40% of lapsed subscribers nets 24% more than offering everyone

A two-box discount goes to every lapsed subscriber, and the quickest to take it are the quickest to leave again. Scored on a year it never saw, the targeted offer nets 24% more and gives away 64% less discount.

Illustrative engagementComposite figures. Shows the shape of the work, not a client result.
Setting
A $14M coffee subscription brand, about 24,000 active subscribers
Industry
DTC subscription
Duration
About four weeks
Line
Scored Decisions
$56,856Net from the 7,360 subscribers offered the discount
$45,926Net from offering all 18,400, the current rule
64%Less discount given away
$10,930Lost on the 11,040 subscribers to drop
01

The situation

The retention lead decides which lapsed subscribers get the win-back offer of two boxes at half price. The rule is to send it to everyone who lapses. It feels fine because the offer only costs money when someone takes it, and the win-back report counts every return as a win. The report doesn't show who takes the two cheap boxes and leaves again.

02

How it runs

  1. 1

    We name the baseline. Offering everyone stays in every comparison, and the team's best simple cut, tenure before lapsing, is registered beside it.

  2. 2

    We write down the expectation before the data is opened. The likeliest takers should keep the fewest boxes, and the score should beat the tenure cut by a stated margin.

  3. 3

    We build on the first year of win-back sends. Each subscriber gets two estimates multiplied together: the chance they take the offer, and the full-price boxes they keep in the six months after it.

  4. 4

    We freeze the score and write down a forecast of $58,900. Then we run it once on the second year's 18,400 lapsed subscribers. The result is $56,856, 3.5% under the forecast.

  5. 5

    We try the simpler ways. Tenure, recency of lapse, and voluntary cancels only are each scored on the same unseen year. The score is 14% to 24% ahead of all of them and of offering everyone.

  6. 6

    We hand back the score in the subscription platform's export, the line that turns it into a send list, the memo, and the holdout cell.

03

What it finds

01

The quickest to take the discount are the quickest to leave.

Subscribers below the line take the offer at 15.0% and keep 0.3 full-price boxes. Those above it take it at 12.5% and keep 4.1.

So what Rank on what a return is worth, not on the chance of a return.

02

The dropped names lose money on the offer.

The 11,040 subscribers below the line lose $10,930 between them on the judged year.

So what Stopping their offer is a gain as long as the discount never brings back someone who would later pay full price.

03

Tenure is the strongest simple cut, and it still trails.

Offering only to subscribers with six months or more nets $49,870. The score is 14% ahead.

So what A simple cut recovers part of the gain, and the team can see exactly how much.

04

What changes

The team pulls the win-back list from the score each month and sends the discount only to subscribers whose expected return covers it. Everyone else gets a full-price note. A random 10% of the offer list, about 736 subscribers a year, gets the full-price note instead of the discount. Comparing that cell with the rest of the list measures how many returns the discount actually causes.

05

What it does not prove

Who returns, not why.

Some of the 920 who take the offer would have come back at full price. Only the holdout cell can say how many, and the $56,856 shrinks by that share.

Six months of value.

Boxes kept past six months sit outside the window. A subscriber who stays two years is valued like one who stays six months.

One brand, one box price.

The method transfers. The 40% line does not.

Next step

Send Kinetric the rule behind your win-back offer and a year of who took it, and we will tell you whether it can be tested.

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