osea-malibu

OSEA Malibu Reported Churn Moved from 10% to 5% After Migration to Loop

migrated from
Recharge
Industry
Beauty

In conversation with

TL;DR

OSEA Malibu was looking for a subscription platform that could support deeper analytics, gift subscriptions, and a more flexible customer experience.

  • Explored multiple solutions to address churn, analytics depth, and customer experience requirements
  • Selected Loop after evaluation and completed migration from Recharge in 2 weeks
  • Results OSEA Malibu's team reports after migrating to Loop and implementing the initiatives below over a 6-month period:
    • Churn moved from 10% to 5%
    • Upsell revenue contribution moved from 4.5% to 6.8% while acquisitions remained steady
  • Main Loop features used: Rewards journey, personalized cancellation flows, tiered discounts, upsell recommendations

Results reflect OSEA Malibu's measured experience; outcomes vary by brand, vertical, product, and implementation.

About OSEA Malibu

Founded in 1996, OSEA Malibu is a premium, clean beauty brand from California. As an established retail enterprise, Shopify subscriptions accounted for approximately 12% of their business at the time of migration. A 10% subscription churn rate signaled an opportunity to invest in active churn reduction and unlock more of the subscription channel.

To act on this opportunity, OSEA wanted a subscription strategy that addressed rewards, active churn, bundles, and incremental revenue together.

The Solution 

Loop's 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 

OSEA Malibu visualized the rewards journey in Loop's customer portal, allowing subscribers to track their progress. With visible milestones and real-time updates, subscribers had clearer visibility into the value of staying subscribed.

Instead of leaning on discounts, which didn't align with their high-end brand image, OSEA focused on value-added perks and incentives. OSEA Malibu's team reports a sharp decline in cancellation attempts over this period, with fewer subscribers clicking "cancel" over time.

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

Cutting active churn with cancellation flows 

Using Loop's multi-step, conversational cancellation flow, OSEA Malibu engaged subscribers at each step.

When subscribers clicked "Cancel," they were directed to a dedicated Benefits Page that highlighted the perks of keeping their subscription. Messaging was segmented based on subscriber attributes like order history, products purchased, and customer lifetime value (CLTV). Subscribers cancelling after their second order saw different reasons and solutions than those cancelling after their tenth.

The team created custom cancellation reasons with personal language, and a custom alternative action for each reason. Subscribers citing "enough stock" were offered options to pause, skip, or adjust delivery frequency. Subscribers who found the subscription too expensive were offered additional discounts or exclusive perks.

As a last resort, subscribers were presented with a tailored offer. Because OSEA Malibu isn't a discount-heavy brand, discounts were limited to specific reasons and communication was highly personalized.

OSEA Malibu's team reported a 3% save rate from this flow.

Implementing tiered discounts to retain high-LTV subscribers

OSEA has many long-tenured customers who have completed a high number of orders. Loop's team worked with OSEA Malibu to create a tiered discounting strategy for loyal subscribers.

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

Loop supports custom messaging for promotional offers, letting OSEA Malibu communicate that the discount was specifically for that loyal subscriber.

Boosting revenue with personalized upsell recommendations

OSEA Malibu recommended upsells based on what customers had already bought. These recommendations appeared in Loop's customer portal with custom messaging like "Goes well with your next order."

The team also boosted upsells via a pop-up cart drawer. Discounts were configured for some products, while others didn't have discounts.

OSEA Malibu's team reports one upsell profile saw a 4.36% conversion rate after setup.

Impact

OSEA Malibu's team reports the following results after migrating to Loop and implementing the initiatives above:

  • Subscription churn moved from 10% to 5% over a 6-month period
  • Upsell revenue contribution moved from 4.5% to 6.8% while acquisitions remained steady

Thinking about scaling your subscriptions? Let’s talk.

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