Subsets: Revolutionizing Subscription Business Retention with Explainable AI
Subsets, founded in 2022, employs explainable AI to identify subscribers at risk of churning and suggests retention experiments to encourage them to stay.
In today’s business landscape, recurring revenue is essential, driving companies to adopt subscription-based models for sustainable growth. However, reducing churn and retaining customers pose significant challenges. Danish startup Subsets aims to address these challenges with its AI-enabled platform, leveraging “explainable AI” to predict and mitigate churn.
The Importance of Recurring Revenue
With the rising costs of customer acquisition, businesses increasingly rely on predictable revenue streams. Subscription models offer stability but require a focus on both acquiring and retaining customers. Reducing churn—the rate at which subscribers cancel their service—is critical for long-term success.
AI-Powered Retention Strategies
Subsets, founded in 2022, employs explainable AI to identify subscribers at risk of churning and suggests retention experiments to encourage them to stay. Explainable AI ensures transparency in decision-making, fostering trust and understanding among users.
Early Success and Funding
Within six months of its launch, Subsets has secured notable clients such as The Athletic and Børsen. The company recently raised $1.65 million in pre-seed funding led by Nordic VC Upfin and Y Combinator, signaling confidence in its growth potential.
Focused Approach to Digital Media
While applicable to various subscription businesses, Subsets currently targets the digital media sector. By analyzing subscriber data points, such as demographics and engagement patterns, the platform helps media companies understand and retain their audience effectively.
Streamlining Retention Strategies
Subsets’ web app provides user-friendly interfaces for commercial teams to explore churn audiences and run retention experiments. By automating successful strategies, Subsets empowers businesses to optimize their retention efforts and reduce guesswork.
Future Expansion and Impact
While initially focused on digital media, Subsets aims to broaden its application to other digital consumer subscriptions and offline sectors. By revolutionizing retention strategies, Subsets contributes to the sustainability and growth of subscription-based businesses in the digital era.