Ecommerce subscriptions are on the rise across all verticals, from Health & Beauty to Sports. (You’d be surprised to see how many fishing subscription boxes exist!) When Amazon introduced its convenient Subscribe & Save feature, news outlets quickly labeled it as the smartest way to save money, and consumers hailed it for its convenience. Today, if you want to keep up with Amazon, you need to consider transforming your brand’s selling strategies into subscriptions to meet your customers’ demands for easy re-ordering and convenience. Think about the impact you could make on your customer’s journey: With a recurring shipment and automated payment, their buying experience would be more seamless and hands-off. This, in turn, could unlock powerful growth opportunities for your business in the form of recurring, predictable revenue.
According to Shopify, brands can turn any product or service into a subscription these days. In fact, 75% of businesses that sell direct-to-consumer are expected to offer subscriptions by 2023. A good way to adopt a subscription model for your online store is by working with a subscription management platform, like ReCharge.
Subscription management platforms make it possible for brands to scale their businesses by converting one-time and loyal customers into subscribers who keep purchasing on a regular, predictable cadence. And even when their cadence is interrupted, the platform mitigates churn and allows customers to manage their orders, skip one or two deliveries when necessary, without canceling their subscription and abandoning the brand.
Data from your subscription management platform also provides you with valuable insights you can use to understand your subscribers better, target them with relevant messages, and keep them engaged with your brand.
You can use subscription data for more precise segmentation to gain higher subscription revenue. If you’re a Zaius user, you already know that you can create segments using any data you bring into Zaius. Subscription data from ReCharge is no different. Segmentation with subscription data can be as simple as targeting those repeat shoppers who don’t have a subscription to your product and persuading them to sign up for your subscription.
Let’s take vitamin and supplement company, Olly, as an example. On their product pages, they allow shoppers to subscribe to quarterly deliveries in exchange for 15% off. If we were working at Olly, we would examine which one of our shoppers placed one-time orders multiple times in the past months, then target them with messages that aim to convert these repeat shoppers into subscribers.