Subscription shoppers are savvy and loyal. In fact, 52% of subscription shoppers take advantage of loyalty programs, according to Forrester Research.
But generating predictable revenue and deeper customer relationships through subscriptions does not happen in a snap. Brands and merchants need to strategically launch a subscription program that serves as a foundation for future growth.
Our VP of Marketing Thomas Marks shares five quick tips for launching a strong subscription program:
You do not need to enable subscriptions for every product. Start small by picking a few products that lend themselves to replenishment models. Ask yourself what customers continuously need more of. Then enable subscriptions on those select products.
Launch test subscription campaigns to get preliminary insights on your subscription program. Then offer subscriptions based on the products that tested the best during the initial test campaigns. Testing allows merchants to start small and expand based on the test campaigns that best resonated with customers.
Another key aspect of launching a successful subscription program is offering customers the ability to self-manage their subscriptions through an online portal. Customers need the ability to pause, change the frequency or change the components of their subscriptions starting from Day 1. These capabilities can extend customer lifetime value and save your customer service teams time and resources.
Just because customers subscribe to a product does not mean they are locked in for life. Brands and merchants need to continuously use personalization and recommendations to safeguard customer loyalty and extend customer lifetime value. Look for opportunities to upsell, cross-sell and offer discounts to retain customers.
Starting a subscription program can be challenging without the right tools. To maximize revenue and create lasting results, merchants need the ability to reduce chargebacks and involuntary churn. Plus, reporting and analytics within a subscription management platform should track churn rates, help mitigate fraud and highlight the overall health of a subscription program. It is critical to have a full set of tools to streamline that process and simplify recurring billing.
Take the first step toward launching a subscription program. Request a demo and find out how the right subscription billing platform can set you up for long-term subscription success.