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Powerful And Profitable Playbooks: The Power Of Subscriptions


In this preview, we’re diving into The Power of Subscriptions from our Powerful and Profitable Playbooks series. We worked with 12 of the industry’s brightest ecommerce agencies to put these 8 subscription playbooks together.

2020 was a rocket ship for ecommerce and subscription growth and 2021 is shaping up to be the same, with merchants of all sizes and from every vertical jumping aboard. Utilize these playbooks as the fuel you need to take your business to new heights.

First — let’s start with The Power of Subscriptions.

Understanding the Basics of Subscriptions

The subscription business model is respected and recognized as a profitable and scalable way to grow lifetime value, reduce churn, and, most importantly, grow recurring revenue. One of the biggest boons to subscriptions is the benefit they provide to both consumer and merchant. 

Consumers get the convenience of a product they desire delivered on a regular cadence to their door. As the return to the “new normal” from 2020’s pandemic becomes more widespread, many of the takeaways on consumer habits from the lockdowns are here to stay. Subscriptions provided safety from having to go out in the pandemic, so essentials delivered on a recurring basis gained more and more popularity. And that momentum isn’t going to slow down. 

In our upcoming State of Subscription Commerce Report, we found that for ReCharge merchants in 2020, subscribers grew 91%. In addition, Average Order Value (AOV) and Lifetime Value (LTV) were both up across the majority of verticals.

Meanwhile, merchants benefit from easier revenue forecasting with vaulted payment info and scheduled orders. This can in turn allow for better supply chain management. Consistent repeat orders also allow for relationship and community building around merchant brands and their products.

These loyal customers become brand advocates, and their affinity for a merchant’s brand can be leveraged into loyalty programs, user generated content, and valuable feedback on new products or initiatives.

Different Subscription Models

Let’s break down the three types of subscription models that you can offer to consumers to take advantage of these benefits.

Curation: The most popular subscription model (55% of merchants choose the subscription type), in which merchants curate a box of one or more products, which are packaged together and shipped at a regular cadence.

Replenishment: The second-most popular subscription model (32% of merchants choose this subscription type) offers the same product on a consistent basis. It’s also referred to as “subscribe-and-save” and works best for products that are consumables (ones that most people use daily).

Access: The third and fastest-growing subscription model (13% of merchants choose this subscription type), access is most commonly used to offer a membership or gate availability. This model is growing because of the wide variety of benefits merchants can offer their subscribers.

Get The (Free) Playbooks Today

Whichever subscription type you’re using, the Powerful and Profitable Subscription Playbooks have the insight and growth strategies you need to unlock The Power of Subscriptions for your business. From Building a Brand Community to Cross-Selling & Upselling to Leveraging the Power of Analytics and Subscription Marketing & Advertising—uncover ways to improve your business and scale your subscription brand.

Special thanks to our friends at ReCharge Payments for their insights on this topic.
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