6 Types of Subscription Services Defining 2025: How to Choose the Right Subscription Business Model

In this article, we’ll break down the subscription businesses surge, the main personas who use subscription models, and ultimately the top 6 subscription business models and explore the benefits of each. You'll come away with actionable advice on how to choose a subscription service that will keep your customers coming back.

The subscription service surge: How it’s taking over and here to stay

While the average industry sees a combined annual growth rate (CAGR) of 10–12%, the subscription industry has seen a CAGR of more than 60% in the past few years, with predictions for a 65% growth rate through 2027.

Consumers don’t just buy subscriptions because they’re recurring product deliveries. They’re investing in a way of life — so says Alex Brown, President of sustainable cleaning product seller Truly Free. A good subscription offer identifies what habit or practice consumers want to support and then tailors its product to meet that need.

The model of subscription you launch is a major factor in determining how consumers interact with your product and what they get from it. Therefore, we challenge you to look beyond what’s easiest or most popular.

Meet the 4 subscribers behind the top types of subscriptions

With the subscription model booming, it’s clear that not all subscribers behave the same way. Before we dive into the top six types of subscription models, it helps to understand the key subscriber personas and how each contributes to recurring revenue, engagement, and long-term growth.

Loyalists

Although comprising only 30% of subscribers, loyalists account for the lion’s share of revenue (79%) with a lifetime value of more than $2,500 spent over an average of 30 months. The typical loyalist earns more than $100,00 annually and is most likely a millennial or bridge millennial. They strongly prefer beauty subscriptions (71%), followed by food and beverages (54%) and clothing (51%).

Persuadables

This segment, which accounts for 22% of subscribers and 14% of total subscription revenue, holds promise for retail subscription merchants. Their average subscription lifespan is approximately 25 months, while their lifetime value sits between $1,000 and $2,500. Although this group doesn’t offer merchants the same certainty as loyalists, they have the capacity to bring in just as much revenue if nurtured correctly.

Short-timers

Despite being the largest consumer cohort at 48% of subscribers, short-timers contribute a mere 7% of total revenue across the retail subscription landscape. They average about 14 months and have a lifetime value of less than $1,000. They’re evenly spread across all income groups and are most attracted to beauty subscriptions (53%) and Amazon Subscribe & Save (35%).

Multi-model subscribers

Last but not least, is a smaller but highly valuable group. Multi-model subscribers hold multiple subscriptions across different subscription business models at the same time. They make up 50% of the loyalist category and have an average lifetime value of $3,021—higher than any single subscriber model. Although only 38% of all subscribers fall into this group, their influence is felt across all six types of subscriptions. Multi-model subscribers tend to prioritize enjoyment (32.2%) and convenience (28.1%), and they are more likely to be younger: 45% of millennials, 44% of bridge millennials, and 42% of Gen Z consumers prefer multiple subscription types.

To find the type of subscription that will most likely succeed for your business, you need to think about what you’re helping subscribers achieve each month. Then, pick the model that best fulfills that goal. With that in mind, the next step is to match those insights to the subscription model that best delivers value. Let’s dive into the six subscription types and explore how each can meet the goals of your subscribers.

Explore the most popular examples of subscription businesses today

Let’s look at the most popular types of subscription services and how they work:

1. Replenishment subscriptions

Perfect for products that customers regularly need—think toiletries, coffee, or household essentials. These subscriptions are convenient, predictable, and help ensure customers never run out.

This replenishment subscription model delivers refills or replacements of consumable products on a regular schedule. These often monthly subscriptions are an excellent way to encourage ongoing use of a consumable product that is used often enough to require regular refills, such as toiletries and cleaning products.

A more exciting example is non-alcoholic spirit brand Lyre’s ecommerce subscription which offers replenishment subscriptions to help hosts keep a well-stocked bar for non-drinkers through a recurring fee model. Users managing subscriptions can decide to have their stock of a favorite spirit sent every one, two or three months, and they’ll get 10% off thanks to the subscribe-and-save setup. These subscription details are the key to keeping users satisfied.

Why it works: Customers love the “set it and forget it” convenience. Customers pay a recurring fee, receive products or services in return, and you get predictable revenue.

2. Curation subscription

Curation subscriptions deliver handpicked items in a certain category or industry each subscription period. This type of subscription is ideal for consumers who want to be seen as tastemakers or receive handpicked items that rise above the competition.

Lifestyle products are a natural fit for this type of subscription model as sellers can source unique items from an array of brands or offerings that look to serve a certain niche within their subscription fee. Anything from clothing to makeup to food can add something special to a buyer’s day, which is why that “just right” or “too cool” selection may be worth paying for.

For instance, Hunter’s Box Club sends a monthly delivery with a fitted t-shirt and a bonus hunting-themed item as part of their subscription plan. The company, which is run by hunters, tests hunting gear and selects the best products for inclusion in its monthly box. Buyers benefit from receiving pre-vetted gear to help on their next hunt.

Curation subscriptions are all about taste, which means personalization is an essential part of the offering. Look for a subscription management app that allows you to qualify a customer’s taste with a feature like a quiz or the ability to track customer data like product reviews. The goal is to help customers tailor their boxes to their taste by allowing them to swap products or product variants in a self-management portal for their subscription plan.

Why it works: It’s experiential—customers enjoy the unboxing and discovering new products.

3. Access subscriptions and membership subscriptions

Customers who pay for access or membership subscriptions are signing up for a VIP experience, whether that means special perks, early access to sales or member-exclusive products or media. Access subscriptions cater to buyers who can’t miss out on the next big thing.

Companies that can differentiate themselves with a uniquely valuable offering might want to consider access and membership subscriptions to enhance their recurring revenue. You may also add a membership element to an existing subscription for top customers who would pay more in exchange for perks like free shipping or exclusive coupon codes.

Smithsonian Folkways, a record label owned by the Smithsonian Institution, uses membership subscriptions to offer exclusive digital downloads from its extensive library of music, ebooks and live recordings of performances. These cultural artifacts are only available to those who pay to support the organization.

Why it works: Exclusivity drives loyalty. Customers pay for convenience, access, or special status.

4. Fixed-rate subscription boxes

Buyers of a fixed-rate subscription box pay the same amount each billing cycle for a set product or service. These subscriptions work well for buyers who already know what they want and are happy to pay for regular deliveries of a certain product or offering.

Companies with a small range of products or one signature product are likely to do well with a fixed-rate subscription. You may sell a consumable good (like food or beverages) or items that buyers like to collect variations of as a sign of status (like luxury or lifestyle goods).

West China Tea’s Tea of the Month club exemplifies a successful fixed-rate subscription. Members get new teas delivered each month, allowing them to try different varieties from a trusted brand.

‍Why it works: Customers get consistent, predictable deliveries of a product they love, while businesses enjoy reliable recurring revenue.

5. Tiered-price subscription box

A tiered-price subscription offers different levels of product for different market segments, allowing customers to self-select into the category that most fits their needs. A tiered pricing strategy helps you increase your customer base with box subscription offerings that cater to a variety of potential buyers.

Subscription merchants can use tiered pricing in multiple ways. For a consumable product subscription, you may offer different volumes of product to different tiers. Luxury or lifestyle goods sellers may differentiate by product pricing or size so buyers can pick a tier that fits their budget.

Flower subscription service UrbanStems offers three tiers, ranging from $55 to $105 monthly, so people who subscribe can tailor the elaborateness of their monthly delivery. CEO Seth Goldman is looking to increase personalization beyond just what tiered pricing can offer. “The next [upcoming] feature is that you can pick within a small subset of bouquets,” he told PYMNTS.com. “That makes people feel like they’re owning the subscription at a more concrete level.”

‍Why it works: Tiered pricing gives customers flexibility and choice while enabling businesses to reach multiple segments and maximize revenue potential.

6. Hybrid subscription sales

A hybrid sales model allows you to offer one-time and subscription sales from the same storefront. This subscription business model gives consumers more choice over their purchasing habits and gives them the chance to support companies whose products or services go above and beyond. It’s an excellent setup for new brands or companies selling products or product types that aren’t widely known.

Truly Free offers a replenishment-type subscription for its green home cleaning products because President Alex Brown recognizes that customers may not want to commit to cleaners before trying them as a one-time purchase. “Brands can make a customer's life easier by automating an offer, like a subscribe-and-save model,” he notes. “At the same time… a new customer may not be ready to make a recurring commitment after the first brand interaction. Offer a way to buy single transactions at checkout and a compelling offer or bundle that will further entice them to try out the subscribe-and-save with no strings attached.”

The trick to doing well with a hybrid sales model is a subscription sales tool that allows mixed-cart checkout. This feature allows shoppers to make one-time and subscription purchases at the same time. You’ll also want to look for advanced billing logic so people who use a subscription have a wider choice of payment structures that can meet their needs. The more you can do to put buyers in control of their subscription experience, the more likely they’ll be to take a chance on subscription products and services they don’t have much experience with.

Why it works: Customers get the freedom to try before they subscribe, reducing hesitation and building trust, while businesses can convert one-time buyers into long-term converts.

Connecting the dots: How multiple subscription models drive loyalty and revenue

Most subscribers start with a single subscription, but a growing group of consumers—multi-model subscribers—hold multiple subscriptions across different types of subscriptions at the same time. These subscribers are highly engaged, have higher lifetime value, and can serve as a key driver of recurring revenue for your business.

Multi-model subscribers often combine models like replenishment, curation, and access subscriptions, reflecting their desire for both convenience and discovery. For example, a subscriber may have a monthly coffee replenishment plan to keep their pantry stocked, a curated snack box for variety and excitement, and an access subscription for exclusive content or perks. By understanding how these subscriptions overlap, brands can design offers that capture more of the consumer’s attention and wallet.

Why Multi-Model Subscribers Matter

• Higher Lifetime Value: Multi-model subscribers tend to spend more than those who stick to a single type, with studies showing they can generate average lifetime values exceeding $3,000.
  
  
• Greater Engagement: These subscribers interact with your brand more frequently and are more likely to participate in promotions, try new products, and engage with loyalty programs.
  
  
• Influencers and Advocates: Multi-model subscribers are often trendsetters within their peer groups, helping to organically grow your audience through word-of-mouth and social sharing.

Strategies to Engage This Audience

1. Highlight enjoyment and convenience: Research indicates that multi-model subscribers prioritize enjoyment (32%) and convenience (28%) over cost. Make your subscription experiences easy to manage and fun to receive, whether through unboxing, digital content, or personalized perks.
2. Offer flexibility and personalization: Tiered pricing or hybrid models—where subscribers can mix one-time purchases with recurring subscriptions—allow users to tailor the subscription to their needs. Giving control increases satisfaction and reduces churn.
3. Target younger audiences: Millennials and Gen Z are most likely to adopt multiple subscriptions. Tailor your messaging to their lifestyle, emphasizing discovery, personalization, and convenience.
4. Cross-sell smartly: Encourage subscribers to explore complementary subscription types. For instance, someone on a replenishment subscription might be interested in a curated or tiered box to enhance the experience. Carefully timed offers and personalized recommendations can drive adoption without overwhelming subscribers.

Why it works: By catering to multi-model subscribers, brands not only increase revenue but also strengthen loyalty across all subscription types. These subscribers are engaged, spend more, and act as advocates for your brand—making them a cornerstone of a successful subscription strategy.

How to choose the right subscription business model

Selecting the right subscription type isn’t just about what you sell—it’s about about understanding your customers, their behaviors, and how they engage with your brand. A well-chosen subscription model can maximize revenue, build loyalty, and turn first-time buyers into long-term supporters. Here’s how to approach the decision:

1. What problem are you solving?
Think about the value your subscription business model delivers. Are you helping customers replenish essential products, offering discovery through curated surprises, providing exclusive access to premium experiences, or creating a personalized experience tailored to their preferences? Understanding the problem you solve guides which subscription type will resonate most with your audience.

Example: A coffee brand may focus on replenishment subscriptions to keep customers stocked, while a beauty box company thrives on discovery subscriptions that surprise and delight.

2. What fits your business model?
Consider whether your offerings are physical products, digital services, or a hybrid of both. Fixed-rate or tiered boxes work best for tangible goods, while memberships or access subscriptions suit digital content, SaaS, or services. Hybrid models allow customers to mix one-time and subscription purchases, which can reduce hesitation for new products.

Example: A wellness brand could offer a hybrid model where customers buy a one-time trial kit and then subscribe for monthly replenishments.

3. What will drive loyalty?
Different subscriber personas respond to different incentives. Loyalists appreciate consistency, persuadables respond to engagement or personalized offers, and short-timers may need extra incentives to extend their subscription. Choosing a model that aligns with your target persona increases retention and lifetime value.

Example: Tiered subscriptions can encourage higher engagement by offering perks or exclusive options for mid- and high-tier subscribers.

4. What’s sustainable for you?
Evaluate your operations and costs. Consider fulfillment logistics, inventory, recurring fees, and tools to automate billing or manage subscriptions. A model that’s easy to scale and manage ensures a positive customer experience while supporting your business growth.

Example: Subscription services that automate billing and inventory management reduce operational headaches and allow your team to focus on growth and customer engagement.

Bottom line: By answering these four questions, you can select the one that fits your audience, aligns with your business, drives loyalty, and is operationally sustainable—setting your program up for long-term success.

Understanding subscribers’ needs and the benefits of subscription business models is key

Beating your competitors starts with choosing the right subscription model. Whether you focus on replenishment subscriptions, curated experiences, tiered pricing, or hybrid models, the goal remains the same: deliver consistent value, delight your audience, and make your brand a regular part of their lives.

By taking the time to match personas to the types of subscriptions that best fit their needs, you’ll create a program that not only drives predictable revenue but also strengthens loyalty, turning first-time buyers into long-term supporters who keep coming back.

To do this, you need to determine what drives people to use the different subscriptions , so your offer is the perfect answer to their desires.

Then, it’s time to find a subscription management app that has the features to support the type of subscription you plan to host. It’s not just about whether you can use your selected billing model. It’s about whether the app supports enough features to make the customer experience match your buyers’ expectations.

This article is a good resource to have in your back pocket to determine which extras best support your chosen subscription model so you can launch a strong offering that consumers are lining up to buy.

How to build a successful subscription strategy

Subscription success isn’t just about price—it’s about experience. Retail subscribers are twice as likely to sign up for the thrill of discovery and enjoyment rather than purely to save money. In fact, PYMNTS Intelligence’s latest study found that enjoyment is the top reason 30% of consumers choose to subscribe, while only 18% cite cost.

Understanding these motivations is key to designing subscriptions that keep customers engaged and coming back. For actionable insights into subscriber behaviors and tips for appealing to this audience, download the full report below and take your subscription strategy to the next level.

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