In a competitive ecommerce market, scaling your business is essential for long-term success. But building a strategy to scale an existing business can prove challenging. As demand for product rises, merchants must contend with inventory setbacks or adding new products, creating efficiencies for order fulfillment and improving customer experience.
Generally, ecommerce stores and omnichannel retailers are looking for ways to maximize business functions at every level including sales, marketing, management and customer service. Subscription offers can provide a quick solution with the added benefits of scaling more quickly. Here’s how it works.
There are several factors to consider when developing a strategy to scale your ecommerce business. For one, you should ensure that all business infrastructure can handle an increase in traffic and transactions. This means establishing a fast and reliable online store with an efficient order fulfillment process.
You also need to ensure your marketing and advertising efforts are targeted to your primary demographic and effective at eliminating friction that might impede conversions. For example, merchants should ensure that online shoppers have the best experience. On average, there’s a 68% shopping cart abandonment rate for most ecommerce stores. Making the checkout process seamless and simplifying the sales process can help alleviate pain points. It may also include understanding your target market and what channels buyers will use to discover new products and brands. In addition, having a firm financial foundation ensures your business has enough cash on hand to cover unexpected expenses.
Investing in subscriptions for your ecommerce store can provide long-term benefits for scaling your business. The recurring revenue stream offers stability and flexibility, making it easier for you to grow without worrying about sudden sales volume changes. There are a few ways in which subscription models are integral to your scaling strategy.
Any ecommerce merchant knows that there are many moving parts to managing a successful online business. In addition to fulfilling orders and responding to customer queries, you also need to continuously monitor your inventory levels, shipping costs and marketing campaigns. It can be challenging to keep track of everything, and it's easy to let important details fall through the cracks.
Subscription models can help you automate your ecommerce by providing you with the agility to meet customer demands. For example, rather than manually ordering new inventory every time your stock starts to run low, you can use your subscription metrics to better forecast inventory levels. This frees up your time so you can focus on other essential metrics, such as conversion rates and repeat purchases. These data points are integral to developing your strategy to scale your ecommerce business.
Subscription models powered by platforms like BigCommerce and Shopify offer various features to help merchants scale their businesses. BigCommerce provides a customizable platform that helps businesses streamline their operations. Shopify offers a wide range of apps and plugins to help businesses expand their reach. Both platforms help ecommerce businesses manage their inventory, connect with customers and accept payments.
As an ecommerce business, one of the most important things you can do is focus on retention and build brand loyalty. This can be challenging to achieve. But by using specific data signals, you can more easily identify what your customers want and adjust your offering based on their feedback. By tracking customer behavior, you can see which products are being purchased regularly and returned or exchanged. This information can help you adjust your inventory and marketing initiatives to better meet customer needs.
You can also use data to track customer satisfaction levels in terms of individual transactions and overall brand loyalty. By consistently monitoring key ecommerce metrics like customer lifetime value (CLTV) and order conversion ratio, you can adjust your retention strategy as needed and keep your customers coming back for more.
Delivering an excellent customer experience is essential for any ecommerce business that wants to build strong recurring revenue streams. For one, happy customers are more likely to come back and make repeat purchases. They're also more likely to tell their friends and family about their positive experiences, which can help generate new business.
In addition, customers who feel like they're being taken care of are more likely to leave positive reviews and ratings online, which can help attract new business. Ultimately, building customer loyalty through best-in-class customer success means scaling your ecommerce business organically, without the additional cost.
As businesses move more and more toward subscription models, it becomes increasingly important to leverage tech solutions that can help automate and manage these services. BigCommerce and Shopify are two platforms that offer a variety of tools to help merchants successfully launch and scale subscription revenue. Native apps designed to integrate with these ecommerce platforms can help merchants sell flexible subscriptions, reduce churn rates, boost customer lifetime value and monitor subscription metrics all from one place. By leveraging these integrations, businesses can become more adaptable and efficient, freeing up time to focus on the essentials of scaling their business.
sticky.io is a subscription commerce platform that helps ecommerce merchants build recurring revenue through subscriptions. The platform provides everything ecommerce merchants need to launch and grow a subscription business, including a flexible subscription management system, expert support and easy connections to other platforms such as Shopify, BigCommerce and Salesforce Commerce Cloud. With sticky.io, merchants can focus on their customers and scale their business to new levels of success.