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> For simplicity suppose 50% of people cancel every month. That means that if I do some clever marketing and manage to get 100 new people to join, then after a
by laumars 9y ago
> For simplicity suppose 50% of people cancel every month. That means that if I do some clever marketing and manage to get 100 new people to join, then after a month 50 of those would be left. After another month, 25 of those would be left and so on.
> Because of this fall-off, even if you run a subscription business forever, you will not have infinite customers. Instead you reach a steady-state number.
You should also factor in returning business as well as new business. eg I'm a very happy customer but since this is a luxury it is often the first thing I cancel whenever money gets tighter. For example when moving house or, most recently, when my wife gives birth to our new baby girl. However when finances stabilize again Candy Japan is often one of the first luxuries I re-subscribe to again.
I'd also like to take this opportunity to say thank you for providing such a great service. The extra effort you put in with regards to the emailed descriptions of the candy as well as the mixture of normal and alternative snacks make it an absolute delight receiving the box.