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Case study 04 — CRM segmentation & retention

What would it take to lift a subscription vitamin brand's renewal rate? A concept CRM segmentation project.

I built a synthetic 12-month dataset modelled on a DTC subscription supplement brand and ran the kind of segmentation and retention analysis I would want in place for a brand at this stage: where renewal is dropping off, which channels bring subscribers who stick around, and what a CRM programme built around those segments could look like.

Sector DTC / e-commerce, subscription wellness
Brand Ritual (concept project, not affiliated)
Role Marketing & CRM analyst (self-directed)
Tools Python (pandas), Chart.js
About this case study: Ritual is a real subscription vitamin and supplement brand. This project is unsolicited concept work created for portfolio purposes. It uses a synthetic dataset modelled on a subscription wellness business. All figures, segments and projections are illustrative. It is not affiliated with, commissioned by, or endorsed by Ritual, and does not represent Ritual's actual data, strategy or results.
01 — The brief

Subscription churn is the quiet growth killer.

For subscription supplement brands, the headline growth number is usually new subscribers acquired, but the number that actually determines whether the business compounds is the renewal rate: how many of those subscribers are still getting a delivery in month two, month three, month six. I built a synthetic dataset modelled on a subscription vitamin brand: 1,170 subscribers, 1,552 orders across 12 months, across four acquisition channels, to dig into three questions: is the renewal rate healthy, which channels bring subscribers who actually stick around, and which subscriber segments need a different kind of CRM treatment.

02 — The objective

Three questions worth answering before scaling spend further.

Is ~26% second-month renewal healthy?

Benchmark the overall renewal rate against what's typical for a subscription supplement brand, and find out whether it's a red flag or just room to improve.

Which channels bring subscribers who stick around?

Acquisition cost is only half the story for a subscription brand: a cheap subscriber who cancels after one delivery is more expensive than an expensive one who renews for a year.

Which segments need a different CRM treatment?

Not every subscriber should get the same lifecycle emails. Segment subscribers by behaviour and turn that into a CRM and content plan a team could actually run.

03 — My role

Dataset, analysis, and the CRM plan that follows from it.

As a self-directed concept project, I played every role: I built the synthetic 12-month order dataset in Python, ran the renewal-rate and channel analysis, segmented subscribers using an RFM-style (recency, frequency, monetary) approach, and translated the four resulting segments into a CRM lifecycle and content plan, the kind of handoff I'd want to deliver to a marketing team alongside the analysis itself.

04 — Strategy

Rebalance acquisition, then build CRM around behaviour.

The segmentation pointed to two connected moves: where to put acquisition budget, and how to treat subscribers differently once they're in.

A

Rebalance acquisition toward channels with sticky subscribers

Renewal rate varied hugely by channel, from 14.2% on Paid Social to 37.6% on micro creator partnerships. Modelled recommendation: shift budget away from the channel bringing in the most one-and-done subscribers, and restructure the creator programme around the partners whose audiences actually renew.

B

Segment-specific CRM & lifecycle programme

Four segments, four different jobs: deepen the relationship with Founding Subscribers, nudge Building the Habit subscribers toward a second and third renewal, give Tried It Once subscribers a reason to come back, and build a structured win-back flow for subscribers who've Paused & Lapsed.

05 — Execution

From raw orders to a segmentation model.

Building the synthetic dataset

Modelled 1,170 subscribers and 1,552 orders across 12 months and four acquisition channels: Creator Partnerships (Macro & Micro), Paid Social, and Organic & Referral, with realistic variation in order frequency, timing and value.

Renewal rate & channel analysis

Calculated second-month renewal rate overall and by channel, alongside CAC and ROAS trends over the 12-month window, to find where acquisition cost was rising fastest relative to subscriber quality.

RFM-based subscriber segmentation

Segmented subscribers using a recency/frequency/monetary approach, producing four groups with very different renewal behaviour and lifetime value, from Founding Subscribers averaging 3.3 orders to Tried It Once subscribers who never came back.

From segments to action

For each segment, defined what a CRM team should actually do differently: which flow to put them in, what the message should be, and what success looks like for that group.

06 — Visual assets

The dashboard: renewal, channels and segments.

A Chart.js dashboard built from the synthetic dataset, the kind of view I'd build in Looker Studio or Power BI for a real subscription brand.

1,170 Subscribers modelled
1,552 Orders across 12 months
£51,163 Modelled annual revenue
25.9% Overall renewal rate
Why this matters: modelled Paid Social CAC nearly tripled over the year (from £22 to £61) while its renewal rate was the lowest of all four channels at 14.2% , the clearest signal in the dataset that acquisition spend needed rebalancing.
The renewal gap: in the model, micro creator partnerships and organic/referral subscribers renewed at roughly 2.5× the rate of Paid Social subscribers, even though Paid Social brought in the largest volume of new subscribers (460 of 1,170).

Founding Subscribers

29 subscribers · 2.5% of base
Share of revenue6.4%
Avg. orders (renewals)3.31
Avg. lifetime value£112.91
CRM action Loyalty & referral programme: give this group early access to new product lines (e.g. a synbiotic-style blend) and a reason to refer friends.

Building the Habit

102 subscribers · 8.7% of base
Share of revenue13.5%
Avg. orders (renewals)2.0
Avg. lifetime value£67.95
CRM action A "third renewal" push with content and offers timed around the second delivery to nudge subscribers into a longer-term habit.

Tried It Once

867 subscribers · 74.1% of base
Share of revenue54.2%
Avg. orders (renewals)1.0
Avg. lifetime value£31.96
CRM action The biggest single opportunity. A structured "why it's worth a second month" flow with education on ingredient sourcing and traceability, plus a renewal incentive.

Paused & Lapsed

172 subscribers · 14.7% of base
Share of revenue25.9%
Avg. orders (renewals)2.24
Avg. lifetime value£77.03
CRM action Win-back flow: this group already renewed at least once, so a targeted "come back" offer has the best odds of any segment.
07 — Results

What the model points to.

These are modelled, illustrative figures from the synthetic dataset, not Ritual's real results, intended to show the kind of impact a segmentation-led CRM programme could plausibly have.

4 Subscriber segments identified

Via RFM-style analysis of 1,170 modelled subscribers

23.4 pts Renewal-rate gap, best vs. worst channel

37.6% (Creator Micro) vs. 14.2% (Paid Social)

~£9,400 Modelled annual revenue opportunity

From rebalancing acquisition toward higher-renewal channels

4 CRM flows mapped to segments

Loyalty, habit-building, renewal education & win-back

08 — Learnings

What I'd carry into a real subscription analytics project.

09 — Tools & skills

What I used to get this done.

Python (pandas) RFM segmentation Chart.js CRM & lifecycle planning Cohort & renewal-rate analysis CAC / ROAS analysis Data storytelling DTC / subscription e-commerce
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