So, you are looking to grow your eCommerce business, and what better way to do so than with following what has been working for many businesses like yours. Subscription commerce isn't a fad anymore, there are many of our most favorite things that are now subscriptions. Subscriptions are literally everywhere. For example, with video games like the Xbox Game Pass, or your food with services like Hello Fresh and Freshly, or even clothing like with Stitch just to name a few. So, we ask why can't this work for you? Here are the 4 truths about subscription commerce. If any or all of these apply to you and your business, maybe it's time to start thinking "into the box".
1. Subscription commerce is helping businesses grow in the midst of hard times.
According to the State of Subscription Commerce Report written by the folks at Recharge, many of the vertical industries that we are used to seeing experienced growth by implementing a subscription commerce strategy. Over most industries, even if you calculate the negative growth for a few--like curated hobby sites, the average order value (AOV) increased by 6%!
2. Being flexible is the name of the game.
Customers are savvier than ever before and know how to shop effectively online. Businesses that are able to leverage the flexibility that subscription commerce offers are showing an increase in AOV as well as average customer Lifetime Value (LTV). How did subscription commerce help with this? With subscription commerce you can offer different ways to shop. You can try deploying checkout options like allowing customers to swap out products, maybe skipping a month, or allowing for one-time purchases. By giving the customer the ability to choose, you give them a sense of customization and control in their spending. Ultimately, it leads to happy loyal customers.
3. Using subscription commerce can increase your Lifetime Value of your customers.
One thing that cannot be underestimated is a brand that believes in its messaging. When you think of brand loyalty, you may find yourself thinking of your own favorite brands that have meaning to you and help enrich your life. For those that know me, they know that I have quite the beard going on and one of my favorite brands is called The Beard Struggle. Why is this important you ask? They have gone beyond just selling beard oil and grooming tools. They've created a persona out of their business. Their story is very compelling and gives me a way to get involved with their business--not just to buy from them. Younger shoppers are wanting to find ways to identify with the brands they like. One study indicated that 94% of people surveyed said that a company's mission was important, yet only 37% said they believed most companies have a clear mission.
4. It's harder to acquire a new customer than retain a subscribed customer.
Sometimes the best way to grow is to offer more to your existing customers. Customers who are loyal are likely to buy more, buy often and recommend your product to others. This is why it's important to care for these champions of your business. So how can you cultivate these types of customers?
- Create areas for personalization, like recommendations or loyalty programs.
- Get to know who these customers are, segment your lists and create unique messaging for each segmentation.
- Consider ways to cross sell other items in your inventory.
- Make the checkout process easy and seamless.
There's a lot to unpack here but I promise you this--if you are looking to grow your eCommerce business, Subscription Commerce is a great place to start. The added bonus is you have a team of experts at Fortuitas who understand where you are and how to get you moving in the direction you want to go with Subscription Commerce. If you ever need to speak with one of our eCommerce experts, feel free to set up a meeting at any time.