OSEA Malibu Cut Churn in Half—From 10% to 5%

In conversation with

OSEA Malibu grappled with major challenges with their previous app, Recharge Payments. Limited analytics made it hard to gain actionable insights, the lack of gift subscription options stifled growth, and a clunky customer portal added unnecessary friction. Recognizing the need for a more robust solution, OSEA Malibu migrated to Loop.

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TL;DR

Before selecting Loop, it's important to understand the context of OSEA Malibu's previous experience with subscription management. The brand encountered several challenges with its former app, Recharge Payments.

• Explored multiple solutions to address churn, get deeper analytics, and improve the customer experience
• Found Loop to be the best fit after extensive testing and achieved a seamless migration in 2 weeks from Recharge
  
• Results:
  
  • Reduced churn by 50% in 6 months. 
  • Increased upsell revenue from 4.5% to 6.8% while keeping acquisitions steady
• Main features used: Rewards journey, personalized cancellation flows, tiered discounts, upsell recommendations

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About OSEA Malibu

Founded in 1996, OSEA Malibu is a premium, clean beauty brand from California. Being an established retail enterprise, Shopify subscriptions accounted for only 12% of their business. A 10% churn rate signaled a clear opportunity: tackle active churn and unlock the full potential of the subscription model.

To seize this opportunity, OSEA needed a comprehensive subscription strategy that left no stone unturned—addressing rewards, active churn, bundles, and incremental revenue. That’s where Loop stepped in.

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The Solution 

Our Customer Success team partnered with OSEA Malibu to implement a plan to transform their subscription experience. Here's how they did it.

Bringing down churn through visual rewards journey 

They visualized the rewards journey in the customer portal, allowing subscribers to track their progress. With visible milestones and real-time updates, subscribers felt a sense of investment and were more likely to stay committed.

Instead of leaning on discounts, which didn’t align with their high-end brand image, OSEA focused on value-added perks and incentives. It sent cancellation attempts into a sharp decline. Over time, fewer and fewer subscribers were even clicking “cancel.”

By making the rewards journey both visible and compelling, OSEA Malibu strengthened subscriber engagement.

Cutting active churn with cancellation flows 

Here’s what they did with Loop’s multi-step, conversational cancellation flow. They engaged customers at each step.

When subscribers clicked “Cancel,” they were directed to a dedicated Benefits Page that interrupted the cancellation process by highlighting the perks of keeping their subscription. Messaging was segmented based on customer attributes like order history, products purchased, and customer lifetime value (CLTV). For example, customers canceling after their second order saw different reasons and solutions than those canceling after their tenth.

Then, they created custom cancellation reasons and kept the language very personal. Then, a custom alternative action was set up for each reason. For subscribers citing “enough stock,” options to pause, skip, or adjust delivery frequency were provided. For those who found the subscription too expensive, additional discounts or exclusive perks were suggested. 

As a last resort, subscribers were presented with an offer they couldn’t refuse. Since they aren’t a discount-heavy brand, they limited discounts for specific reasons, and their communication was highly personalized. 

This flow led to an impressive 3% save rate, proving just how powerful personalized subscriber engagement can be. OSEA Malibu didn’t just reduce cancellations but also strengthened trust and loyalty.

Implementing tiered discounts to retain high-LTV subscribers

Since OSEA is an old brand, they have several repeat customers who have completed a lot of orders. We worked with them to create a special tiered discounting strategy for loyal subscribers.

Leveraging customer-specific attributes, the team created tailored incentives, such as a gift for high-value subscribers. Even discounts were carefully targeted to subscribers who had spent over $250. 

And what’s better than an exclusive discount? Letting subscribers know it’s just for them—that you’re rewarding their loyalty. Loop made this possible with custom messaging for promotional offers, making each loyal subscriber feel truly valued.

Boosting revenue with personalized upsell recommendations

OSEA Malibu recommended upsells based on what customers had already bought and saw an uptick in sales. These recommendations appeared on the customer portal with custom messaging like “Goes well with your next order.”

Additionally, they boosted upsells via a pop-up cart drawer as shown below. Discounts were configured for some products, while others didn’t have discounts.

The whole process took 5 minutes to set up, and one upsell profile saw a 4.36% conversion rate, bringing in additional revenue from existing customers.

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Impact

As a result of these initiatives, OSEA Malibu slashed churn from 10% to 5%, while upsell revenue contribution grew from 4.5% to 6.8%.

All things considered, here are some final thoughts from the team at OSEA Malibu.

Thinking about scaling your subscriptions? Let’s talk.