For consumers, subscription boxes generate a lot of excitement. When one launches, you’ll often see viral unboxings and a surge of signups. The novelty of a new subscription box drives impulse buys. Influencers help initial growth by taking part in loyalty programs, like discount codes. Then, all of a sudden, the growth stalls. You’ll see churn climb and customer acquisition costs spike. Before you know it, the business is in the red. Here’s why subscription box businesses flame out after hot starts and how to build staying power.
