Lina Tonk, CMO at Recurly, on why the subscription economy is far more creative than anyone expects, what airlines experimenting with bag and seat subscriptions reveals about where every business is heading, and why retention is the most underinvested lever in subscription marketing.
"Most people hear subscriptions and think streaming. But subscriptions are now everywhere. Airlines. Healthcare. Retail."
Why subscription management is a creative discipline and why airlines show where every business is heading
Lina Tonk spent nearly a decade in HR tech before joining Recurly, the leading subscription management and billing platform. Her decision was driven by falling in love with the product and seeing a market expanding far beyond streaming into airlines, healthcare, and retail.
In this conversation Tonk describes what the creative possibilities of subscription models look like in practice, why loyalty and retention are systematically underinvested relative to acquisition, and how CMOs with sales experience develop a different relationship with revenue accountability.
I fell in love with the product. I wanted to find a product we could really expose to the world globally. The subscription market had so much to unlock. Most people think subscriptions and think streaming, but it is everywhere now.
Genuine product conviction is Tonk's starting point. Marketing something you believe in produces better outcomes.
I was just off a meeting with airlines trying to unlock future revenue through subscriptions. Subscriptions for bags, loyalty programmes, seats. Alaska Airlines just acquired Hawaiian Airlines and the creativity they have deployed while running subscriptions with us is one of the coolest things I would say about this space.
Subscription models allow industries to generate predictable revenue from what was previously transactional.
Every subscriber you retain is revenue that does not need to be re-acquired. The cost of re-acquisition is always higher than the cost of retention. Most subscription businesses spend more on acquisition. That is almost always the wrong ratio.
Tonk is making an argument most subscription marketers agree with intellectually but few organisations resource correctly.
I spent a short period in sales. I lost a bet. But it gave me a great view of how sales feels about their roles, what they go through, how they carry a bag. Probably one of the reasons I work so well and closely with CROs today.
The sales experience created empathy with the commercial function that changed how Tonk approaches marketing.
It is data-driven and close to the customer. The subscription relationship does not end when someone signs up. That is when it begins. You have to design marketing that serves every stage of the lifecycle, not just the acquisition moment.
A lifecycle orientation distinguishes subscription marketing from one-time purchase marketing.
"Every subscriber you retain is revenue that does not need to be re-acquired."
Host Tell us about Recurly and your role.
Tonk Recurly is the leading subscription management and billing platform. I fell in love with the product. The market is far more creative than people expect. Most think subscriptions means streaming. But I was just off a call with airlines doing bag subscriptions and seat subscriptions. The creative potential is enormous.
Host Why is retention the key lever?
Tonk Every subscriber you retain is revenue that does not need to be re-acquired. Re-acquisition always costs more than retention. Most subscription businesses spend more on acquisition. That is almost always the wrong ratio. Loyalty is where growth compounds.
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