For 12 years Andrei Rebrov managed infrastructure and operations at Scentbird, a fragrance subscription firm he co-founded in 2013. He discovered the significance of buying the fitting subscribers, those that keep for some time and generate lifetime worth for the enterprise.
The important thing, he says, was correct, well timed analytics to evaluate channels, artistic, and promos. Finsi, his new firm, gives these metrics, enabling retailers to foretell a prospect’s worth over the long run.
In our current dialog, I requested Andrei to share acquisition ways, churn avoidance, product choice, and extra.
Our complete audio dialog is embedded under. The transcript is edited for size and readability.
Eric Bandholz: Inform our listeners who you’re and what you do.
Andrei Rebrov: I’m the co-founder of Finsi, an analytics platform for subscription-based companies, launched in 2024. We assist corporations purchase and retain worthwhile subscribers.
Earlier than that, I spent 12 years constructing and scaling Scentbird, a fragrance subscription service, the place I served as CTO.
I dealt with a lot of the engineering, together with coding the web site, constructing back-office techniques, and managing on-line funds and warehouse infrastructure. We launched in August 2014 and surpassed 1 million subscribers by the top of 2024. I left the corporate in March 2025.
We began Scentbird alongside subscription pioneers similar to beauty manufacturers Ipsy and Birchbox, and attire supplier Fabletics. We have been impressed by Warby Parker’s “attempt before you purchase” mannequin, and we utilized the idea to fragrances. We constructed our personal platform, which gave us flexibility and scalability over time.
We started with fragrances from different manufacturers. Some have been hesitant, however over time, Scentbird turned a mutually helpful accomplice, giving manufacturers entry to youthful audiences, web shoppers, and customers who wished to attempt earlier than committing to a full bottle. Our web site’s motto turned: “Date your perfume earlier than you marry it.”
Clients might choose their month-to-month fragrances or obtain a default “perfume of the month.” 1000’s selected the default, enabling the speedy assortment of evaluations and insights that manufacturers might use to refine formulation, advertising and marketing copy, and methods.
Subscription companies require nonstop acquisition to remain in place. The problem isn’t simply lowering churn; it’s buying prospects who will keep. Most SaaS corporations separate acquisition and retention groups, which may create disconnects. Success comes from collaboration — aligning acquisition, retention, and operations — so all the firm capabilities as one system. Rising buyer acquisition spend is often worthwhile if it improves lifetime worth.
We have been vertically built-in, which meant that success, logistics, and advertising and marketing needed to transfer collectively. If one workforce outpaced the others, one thing would break rapidly.
Bandholz: What drives worthwhile acquisition?
Rebrov: Correct analytics. It’s one of many hardest elements of operating a subscription enterprise, and it’s an enormous purpose I began Finsi. At Scentbird, we invested early in analytics as a result of each acquisition channel behaves otherwise. Every has its personal lifetime worth, payback interval, and acquisition value, so analyzing them individually was important.
We would have liked to grasp what prospects bought by way of every channel and the way these purchases affected retention. Conventional LTV calculations depend on historic knowledge, which is often dated. That delay makes it unimaginable to know if present methods are working. To unravel this, we constructed predictive LTV fashions that supplied early perception — usually inside a month — so we might gauge the affect of recent creatives and A/B assessments sooner.
For instance, we examined a two-product-per-month plan. It initially lowered conversion charges, however predictive knowledge revealed a lot stronger long-term worth. That perception helped justify warehouse changes for the brand new success course of.
We explored varied buyer acquisition channels. TikTok Outlets turned a high performer. Because it built-in solely by way of Shopify, we constructed a faceless Shopify retailer related to TikTok, routed orders by way of it, and shipped pattern bundles to introduce customers to the Scentbird expertise earlier than changing them into subscribers.
We grandfathered long-term subscribers to reward loyalty. Some stayed seven or eight years, although many churned inside 12 months. Early, correct analytics made it potential to steadiness development and retention successfully.
Bandholz: What measurement firm advantages from Finsi’s analytics?
Rebrov: It’s much less about measurement and extra concerning the development stage. Every stage faces totally different challenges. One of many greatest is money circulation. Each bodily SKU has its personal lead time, so if stock takes three months, corporations should precisely forecast demand, churn, and money circulation. For early-stage manufacturers, these with annual income below $10 million, we assist stabilize operations and predict money wants.
At $10 to $50 million, segmentation turns into essential: figuring out lapsed prospects for customized win-backs and recognizing high-value prospects early to supply premium experiences.
At $50 to $150 million, the main target shifts to eliminating surprises and aligning techniques, guaranteeing promotions run accurately and groups perceive how one resolution impacts one other. Bigger manufacturers usually broaden into new product traces and face the identical scaling points once more. Throughout all levels, success is dependent upon correct, unified knowledge to information smarter selections.
Efficient retention is dependent upon understanding why prospects cancel.
Bandholz: How do you try this?
Rebrov: We often begin with surveys to collect each structured and unstructured suggestions. A number of-choice questions present quantifiable insights, however the true worth lies in open-ended responses, the place prospects share their private tales. Surveys allow you to attain 1000’s of individuals effectively, however cellphone conversations are invaluable. Speaking immediately with prospects usually reveals distinctive motivations and use instances that spark creativity and information product growth.
Spending even half-hour on the cellphone with a couple of prospects, particularly loyal ones, can uncover extra insights than analytics ever might.
Sure merchandise naturally match subscriptions. Examples are consumable dietary supplements, protein powders, and snacks. However occasionally bought items are higher suited to one-off gross sales.
Corporations should determine early as a result of it shapes their advertising and marketing technique. For conventional ecommerce, profitability usually is dependent upon the primary sale. You intention to cowl acquisition, value of products, and delivery upfront, usually by promoting bundles.
For subscriptions, the main target shifts to lifetime worth. Sellers can afford to lose cash initially in the event that they know the client will keep lengthy sufficient to change into worthwhile. Predictive LTV helps qualify prospects early and informs how a lot you possibly can spend to amass them.
Simplicity wins. Don’t confuse prospects with a number of buy paths or gives. Guarantee a “subscribe and save” supply is constant and straightforward to grasp.
The great thing about subscriptions lies in predictable money circulation. But rising acquisition prices make retention much more very important.
Bandholz: The place can individuals observe you, attain out to you, or rent your companies?
