Use Subscriptions to Facilitate Recurring Revenue

Subscriptions are the best expression of brand loyalty you can get, boosting the lifetime value of your eCommerce shoppers while offering convenience, benefits, and savings. In this lesson, we will discuss how to make buying from your brand as convenient as possible with a subscription offering.

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Josh Enzer VP Product Marketing Jul 14, 2020
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Clearly define a subscription value proposition
Consider VIP subscriptions with exclusive benefits
Go above and beyond for your subscribers
Ask customers to subscribe directly

Your top customers are looking for convenience and savings. By incorporating a subscription model into your business, you not only meet the needs of these customers, but you greatly increase repeat purchase rates and retention.

Shoppers are more likely to commit to subscribing if they understand the benefits, so lay them out in clear and concise terms. What added value does the shopper get from subscribing? Which perks can they expect? How much would they save?

Subscriptions are often associated with consumables that naturally need to be replaced regularly, but there are other ways to offer value for customers that make subscription services a realistic strategy for a wider array of brands.

Companies that might not typically be associated with subscriptions — like fashion brands or services where there’s no tangible product – can still generate recurring revenue through membership-style benefits like free express shipping, recurring store credit, curated offerings, and access to members-only sales. If you tailor the site experience for VIPs and make your members feel special with exclusive benefits, you can still create a successful paid subscription service.

Your subscribers are some of your most important customers. They should feel that way during every interaction they have with your brand. Once a shopper subscribes, invest in all aspects of their upgraded journey, from their experience on your site through to the product arriving on their doorstep.

Make sure your billing is seamless and your express shipping is fast and effective. Tailor packaging to create memorable unboxing experiences. Provide ultra-responsive customer support, and reward them with exclusive deals and loyalty points.

You’re offering cost savings and convenience with real value, so be direct when asking your shoppers to subscribe. Grow your subscribers by offering discounts to customers who sign up, and encourage advanced payments and auto-renewals.

Highlight subscription options on your product pages, clearly outlining any benefits and potential savings a shopper could earn. If free shipping is a perk of membership, emphasize this when the customer is choosing a shipping option.

2020 TRENDS:

Subscriptions are on the rise

0 %

Online shoppers that say they subscribe to a subscription box service

0 %

D2C companies that are projected to have subscription offerings by 2023

0 %

Online shoppers that consider a subscription service and actually go on to subscribe

How can Yotpo help?

Create a Paid Membership

Yotpo’s quick-to-launch membership program allows brands to create a new revenue stream in a matter of days. Incentivize shoppers by offering exclusive customer experiences and an unlimited supply of special offers.

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Make Payment a Rewarding Experience

Brands that use ReCharge to manage subscription payments can also use the Yotpo Loyalty integration to generate coupon codes that offer powerful rewards when shoppers purchase subscriptions or refer friends.

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Send Updates Via Text

Yotpo SMS & Email also integrates with ReCharge, enabling brands to send payment notifications, subscription updates, charge reminders, and subscription-specific cart abandonment reminders through SMS, which can drive trust and extend subscription LTV.

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See these strategies in action

Bokksu, Soylent, and Hint use Yotpo solutions to enhance the performance of their subscription offerings.