In brand building, a focus on customer retention is a golden key to revenue growth. Subscriptions are a logical way to reward your brand-loyal customers by offering them regular deliveries of their beloved products. I argue that subscriptions are a very ideal approach for both stores and customers whenever consumables are concerned! Acquiring subscription sales is a natural extension of the marketing cycle you already have.
Despite their personal nature, any fulfillment center you’ve outsourced to should be able to handle them no problem if they’re worth your money.
Why should you offer subscriptions?
In one simple phrase: subscriptions improve the quality of your revenue. They accomplish this through a number of fronts. The major points are bulleted below.
Cost-of-acquisition is greatly improved once a customer subscribes. You are (hopefully) no longer serving impressions to subscribed customers. If you are advertising to this segment of your customers, the marketing pipeline should be focused on upselling.
This benefit is crucial since it can have a significant impact on your net profit.
Customer lifetime value (CLV) is vastly superior for subscription customers, compared to repeat purchasers. This is compounded by the fact that the modern consumer will periodically forget about their active subscriptions. High quality products and customer experiences will combat the eventual buyer’s remorse. With high-quality subscription platforms like ReCharge, you can even lock the customers into a set number of subscription periods!
This benefit is crucial since it gives you a good sense of the baseline revenue you can expect every month, regardless of how you’re altering your marketing strategy.
A good example of a ReCharge-based subscription program in action is JerkyXP (shown below). Offering percentage discounts in exchange for subscribing attempts to convert one-time purchasers into subscribers.
“But my fulfillment center says they can’t handle the personalization of subscriptions!”
Way up here in 2016, we think there’s really no excuse for a fulfillment center not supporting subscriptions. They typically give one of a few reasons:
- “We can’t personalize your orders” (optionally: “without charging you an arm and a leg!”)
- “We’re not set up to handle subscriptions”
- “What’s a subscription?”
These are all sure signs that you may be using an outdated or over-bloated fulfillment center. Subscriptions are easily handled through a proper implementation of ReCharge and Shopify. Subscription orders are passed so seamlessly from ReCharge to Shopify that our warehouse staff is automatically given instructions on how to personalize each subscription order.
At Ships-A-Lot, we even offer individual personalization of subscriptions by individual customer! It is so seamless that this service is offered to all of our customers at zero additional cost.
What’s your excuse for missing out on the high-quality revenue provided by subscription sales? Certainly don’t let dated fulfillment separate you from better profit!
We at Ships-A-Lot free up your time so you can focus on building your brand!