Build Your Recurring Revenue Playbook

Build Your Recurring Revenue Playbook

What this is for

What you get

• A structured path from one-off to repeat

• Revenue models (subscription, replenishment, continuity) matched to your business

• Triggered campaigns and product/offer design to drive habit and retention

• Metrics and guardrails to monitor payback and churn

Core logic

Step-by-step

• Subscription: Regular delivery of service or product (SaaS, curated goods).

• Replenishment: Predictable need cycle (refills, consumables) with reminders or auto-order.

• Continuity/club: Access, perks, or tiered community that customers renew for ongoing benefit.

• Annual/Membership: Prepaid loyalty with built-in commitment and value layering.

• Frequency of use or consumption

• High satisfaction/engagement signals

• Purchase size or combination that implies dependency

• Past buyers who returned after a gap

• Incentivize with a discount, added value, or convenience (e.g., “Save 15% and never run out” auto-replenish).

• Reduce friction: one-click enrollment, easy cancellation, clear “what’s next” pathway.

• Anchor loyalty: show projected savings or outcomes for staying.

• Post-purchase follow-up (“Based on what you bought, here’s how to never worry again.”)

• Usage thresholds (e.g., after X uses, invite to subscribe)

• Time-lapse reminders before expected repurchase window

• “Second purchase” upsell packaged as a loyalty upgrade

• Deliver consistent value early (quick wins) to reduce early churn

• Use tiered rewards or escalating benefits for continued commitment

• Automate reminders, renewals, and loyalty acknowledgments

• Gather feedback and adjust cadence or offer if engagement drops

• CAC payback period on recurring offer (should be shorter due to expected lifespan)

• Churn rate (monthly/annual)

• Average revenue per user (ARPU) over time

• Lifetime value vs. one-time buyer baseline

• Test price/term combos (monthly vs. annual, bundling add-ons)

• Reactivate lapsers with tailored “we miss you” sequences

• Cross-sell complementary recurring products/services

• Use referral incentives to grow the recurring base

Decision thresholds / guardrails

• Early churn high (e.g., >30% in first period) → Improve onboarding/value delivery or soften commitment terms.

• Payback period exceeds acceptable window → Adjust pricing, reduce CAC, or increase initial perceived benefit.

• Repeat rate stagnates → Revisit triggers, cadence, and upgrade messaging.

• Revenue concentration in one-time buys persists → Double down on highest-propensity segments with optimized transition flows.

Examples

• E-commerce consumables: Customers buying skincare refills get a timed email before depletion with a one-click auto-replenish offer and 10% loyalty discount—repeat rate rises, and LTV doubles.

• Service: One-off consulting clients are offered a “strategy retainer” with monthly check-ins, framed as continuity of progress—retention built via early wins and a dedicated dashboard.

• SaaS: Free trial converts to monthly subscription; heavy users get nudged to annual with savings and exclusive features, reducing churn and increasing commitment.

Thinking checks

• Is the recurring offer aligned with actual customer need or usage rhythm?

• Are triggers timely and behavior-based, not generic blasts?

• Do early users see enough value to justify continued payment?

• Are you measuring and optimizing churn, payback, and upgrade flow efficiency?

What to track (minimum)

• Conversion rate from one-time to recurring

• Churn rate (initial period and ongoing)

• Payback period on recurring customer acquisition

• LTV lift vs. one-time buyers

• Reactivation effectiveness for lapsing recurring customers