In my experience and that of my customers, compounding improvements in retention and expansion move the needle more than aggressive acquisition spend. Acquisition without a solid retention engine is expensive and unsustainable. Key metrics to track include churn rate, monthly recurring revenue (MRR) growth, customer lifetime value (LTV), cohort retention, engagement metrics (DAU/WAU/MAU), and expansion revenue (upsells, cross-sells).

Balancing acquisition with subscription base management is crucial: while bringing in new users matters, nurturing your existing base often delivers higher ROI. Referral programs amplify growth at lower cost, particularly when you create mechanisms for users to invite others, turning your product into a networked asset.

Product value increases when engagement triggers more engagement—features that encourage users to involve others, collaborative or social elements, and user-generated content all deepen retention. Usability matters enormously: onboarding flow, frictionless experience, and clear value delivery drive both adoption and continued subscription. Continuous feedback loops, personalization, and content that evolves with users also compound retention effects.

In short, scale through acquisition, but compound growth through retention, expansion, and network-driven product value. Acquisition is expensive; retention multiplies the value of every dollar already spent.

Side note: In subscription businesses, retention and expansion usually outweigh raw acquisition in long-term value, though both must be balanced strategically.