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.
You can dig deeper into your data and create segments based on subscription cancellation reasons. Imagine Olly learned that the majority of their subscribers canceled because they already had an excess of the product to which they subscribed. In that case, the Olly team could decide to offer another subscription frequency option where they ship fewer boxes every quarter so that their subscribers don’t get more products than they need.
By bringing your ReCharge data into Zaius, you can also make your subscription data actionable in the context of omnichannel campaigns. Keeping your customers engaged between purchases or recurring payments is key to retention. With subscription data, you can introduce additional, relevant touchpoints –emails and SMS alike– to your customer communications. One user-friendly campaign you can launch is a heads-up campaign based on the “next charge date” value. Like the name suggests, in this campaign, you give your subscribers a heads-up that they have an upcoming shipment (and charge to their credit cards). To better cater to your subscribers’ needs, you can even let them know that they still have time to manage their next order. This will give them a chance to skip an order instead of canceling their subscription altogether.
This text message example is from Smalls, the healthy cat food company. The benefit of sending their heads-up campaign as an SMS touchpoint is that the recipient is extremely likely to see this message, compared to an email, which might get lost in their inbox.
Omnichannel campaigns maximize the visibility of messages, so we highly recommend complementing emails with text messages to keep subscribers informed about their upcoming orders.
You can take your heads-up campaign to the next level by offering your subscribers limited-time add-ons they can purchase before their next order ships. Personalized makeup and beauty product subscription service Ipsy does a masterful job with add-ons. As the brand is ramping up for the shipment of next month’s bag of products, it continuously makes new add-on products available for subscribers who have the option to add these to their next delivery for significantly discounted prices. Because Ipsy gradually rolls out the add-ons, subscribers stay engaged with their emails throughout the entire month, looking for the next exciting deal.
Do you think your brand is ready to turn your product into a subscription? Start the conversation about using ReCharge with Zaius today to scale your business and make your revenue far more consistent and predictable!