The Subscription Model Is Cracking. What Comes Next?

There was a time when “Subscribe & Save” felt like a flex.

Every brand wanted to be the next Dollar Shave Club or FabFitFun. Predictable revenue, direct access to consumers, built-in loyalty — it was the holy grail. Just get people to sign up once, and boom: LTV unlocked.

But lately?

The shine is wearing off.

Consumers aren’t auto-renewing. They’re reevaluating. And increasingly? They’re hitting “cancel.”

So… what changed?

1. Budgets got tight.

Inflation happened. Rent went up. Streaming bills piled high. And suddenly, that $59.95/month activewear membership started to feel more like a burden than a benefit. Consumers aren’t just cutting back — they’re getting smarter. Every charge gets scrutinized.

2. The value isn’t always adding up.

Take Fabletics. It built its brand on the promise of affordable, stylish fitness wear — with a catch: you’re automatically charged each month unless you “skip.” But when people forget (or don’t realize they signed up in the first place), frustration builds. And trust erodes.

Even Ipsy — once the reigning queen of monthly beauty boxes — has seen its grip loosen. Sample-sized surprises used to thrill. Now, they often feel like clutter. The novelty wore off. And without personalization or real utility, even $13/month starts to feel like too much.

3. Consumers want freedom, not friction.

The old model was built on stickiness.
The new model has to be built on desire.

Today’s shoppers don’t want to be locked in. They want to be invited back — with smart offers, fresh drops, and reasons to re-engage that don’t rely on auto-billing.

So what should brands do instead?

Here’s what’s working:

1. Make every purchase feel intentional.

Drop the pressure. Ditch the commitment. Instead of chasing monthly charges, give customers more control. Pay-per-product, bundles, curated kits — let them choose when and how they engage.

That’s what Merit is doing right.
Their curated kits let shoppers build a look around them — selecting shades that actually match, with no subscription strings attached. It feels personal, elevated, and totally on the customer’s terms. Bonus: the kit still encourages discovery, but in a way that feels guided, not forced.

2. Focus on episodic moments, not recurring cycles.

Fabletics could win big by shifting from “monthly charge” to “limited-time capsule.” Same pipeline, different packaging. Build drop culture, not subscription fatigue.

3. Build re-engagement loops, not retention traps.

If someone cancels, don’t treat it like a breakup. Treat it like a pause. Win them back with personalized reminders, relevant launches, or thoughtful thank-yous for past purchases. Respect goes a long way.

4. Reward loyalty — without forcing it.

Starbucks doesn’t charge a monthly fee. But people still come back. Why? Because the rewards are real. The friction is low. And the brand keeps showing up in fresh, relevant ways.

The bottom line:
People still want consistency.
They still want convenience.
But what they don’t want? To feel tricked, trapped, or guilted into buying.

The brands that survive this shift will be the ones that understand:

Loyalty isn’t something you bill for.
It’s something you earn — over and over again.

Are you ready to
dominate your category?