Subscriptions: The future of your eCommerce business
Ever wished you could sell more of the same products to your customers at regular intervals, while simultaneously attracting more committed long term customers? Well, it might actually be easier than you think!
If you have an eCommerce website perhaps you're using a lot of your marketing budget to attract new customers to your sales funnel using paid ads, social media and SEO.
You might also be spending money on best practice inbound marketing techniques to add value and offer a solutions based journey to your customers, keeping them engaged with your brand.
But have you considered the huge benefits of building a deep and long lasting relationship with your ideal customer from the very beginning with through introducing a subscription service?
One of the easiest and most profitable ways that the fastest growing online brands are achieving long term customer loyalty is by adding a subscription model to their sales mix, thus creating a seamless buying experience from the start of their relationship with your brand.
Our clients, SmoothieBox offer high quality, delicious frozen smoothies delivered straight to the door of their customers across the United States.
Benefits of Subscription Models
Subscriptions for online product purchases are the eCommerce equivalent of real world membership models like gyms and clubs.
For any business this can deliver consistent income, all the benefits of deep and long lasting customer relationships. You can expect to significantly increase your average order value (AOV) and customer lifetime value (LTV).
Not only that, you can forecast stock requirements more accurately, level out your seasonal curves and use that predictable revenue to scale and grow your business with confidence.
Suitable Sectors for Subscriptions
At Perspective Design, we have implemented subscriptions for clients in multiple sectors including Food & Beverage, Sports Apparel, Fashion, Nutrition and Pharmaceuticals. These are areas where repeat purchase makes life so much easier for the customer, and your own team.
A subscription service can be a profitable add-on for many eCommerce retailers. Through delivering repeated customer satisfaction, you are more likely to create passionate brand advocates who will recommend and talk up your brand, while increasing customer lifetime value, the key metric in subscription.
Increasingly, ambitious brands across multiple sectors are finding ways to introduce subscriptions to their purchasing options. Some of our favourites are:
- Pasta Evangelists - Italian meal subscriptions
- Ish Fish - Premium fresh fish subscription
- Pact - Coffee subscriptions
- Smol - Laundry & Dishwasher tablet subscriptions
- Monthly Tee Club - T-Shirt subscription
Integration with eCommerce Apps
We partner with Recharge, a subscription software specialist who power over 10,000 stores. Their cutting edge technology seamlessly integrates with over 25 of the top eCommerce and marketing apps so that workflows can be fully automated and all the different aspects of your business can work together.
Our clients, Tippsy deliver an exceptional selection of Sake to their subscribers in the United States.
Enhance your Customer Experience
Through implementing subscriptions for our own clients, we believe they are the future of eCommerce growth, and a brilliant way to enhance your customer's experience.
By developing bespoke box-builders for our clients, they have been able to offer their customers the opportunity to personalise their order build, try new products or swap out for different ones in a way that looks and feels effortless.
Making this process smooth is key to success and increased customer retention. At the same time making it part of your business' workflow enhances your overall productivity.
Additional services within the subscription model, like giving customers the option to skip or delay a month’s shipment or reschedule their delivery, also decreases customer churn still further. Rather than lose a customer who needs to cancel, you retain their future spend and can increase lifetime value by up to 30%.
Added value benefits like automated emails to confirm any upcoming charges and shipping information means enhanced customer experience without any increase in work for the business, just extra efficiency.
Our clients, Lincolnshire-based Surprise Shirts, have built an incredible business supplying unique football shirts to kit fanatics around the world. We recently helped them introduce subscriptions for their customers.
Want to know more?
A subscription service could really help you increase your customer lifetime value, decrease customer churn, and help you reach your growth goals.
If you think your products are suited to a subscription model but don't currently have one as part of your purchase funnel, get in touch with us today and book your free strategy session where together we’ll:
- Review your current product mix for subscription suitability
- Appraise your current website for possible integrations
- Consider the specific benefits of subscriptions for your business
- Get actionable insights for how subscriptions could help you grow your business