IS YOUR RETENTION "TOO GOOD”?

Summary from the TLDR Marketing newsletter

In B2C subscription businesses, high retention rates can signal over-targeting core personas and missing growth opportunities. Accepting some early churn allows experimentation with broader audiences, increasing long-term revenue potential. The goal is to elevate the cohort floor - where churn stabilizes - by retaining customers after the initial drop-off. For example, Hulu raised its floor from 20% to 30%, which boosted its profitability. Retention strategies differ by churn timing. Early churn often points to onboarding issues, while later churn may require solving product-related problems like content gaps.