While inflation rises and ecommerce competition grows tight, Shopify merchants are paying higher acquisition costs than ever before — and acquisition is only half the battle. Merchants who don’t have a retention strategy will likely struggle to bring in consistent revenue through one-time sales. Future-forward merchants focused on brand loyalty are selling subscriptions to keep high-value customers coming back to their Shopify stores.
Subscription commerce has doubled in size over the last five years, and a projected 75% of direct-to-consumer brands will offer subscriptions by the start of 2023, according to market intelligence platform PipeCandy. Our product team recently hosted a webinar to discuss the numerous benefits of selling subscriptions on Shopify and explained how to get started with a subscription app for Shopify.
Subscriptions do more than just build brand loyalty — they’re attractive to merchants for several reasons.
Many merchants love selling subscriptions simply for the stable recurring revenue they generate. Since they’re a set-and-forget purchase, customers enter their payment information once to continue receiving shipments and getting rebilled each cycle. It’s a relatively low-maintenance system that keeps the money rolling in.
The importance of shipping and fulfillment in ecommerce is often underplayed, but recent supply chain shortages in every industry from beauty products to pet supplies highlight the need for inventory and supply chain planning.
Selling subscriptions on Shopify makes inventory planning easier by taking the guesswork out of each order, giving merchants a better idea of the inventory they’ll need in the near future. Although there’s no way to entirely avoid the effects of the unpredictable global supply chain, predictable subscription orders can alleviate some stress from the fulfillment process.
In a digital world where privacy settings are growing stronger, there’s no better data than subscription data. “Subscriptions can give you greater insights into your customers at a time when they’re more protective than ever of their personal data,” said Collin Robinson, sticky.io’s product marketing manager and webinar host.
An easy-to-use subscription management app for Shopify allows merchants to collect the long-term customer data they need to improve products and services, make personalized offers and create a unique relationship with each customer. Must-know subscriber analytics include:
Last but not least, subscriptions attract high-value customers who will stay loyal to your brand for months or years to come. If subscribers are at risk of churning, merchants can use familiar data patterns to detect these users and nurture them with specialized offers to maintain the relationship. A high CLTV puts less pressure on ecommerce merchants to acquire new customers through costly advertising or marketing efforts, thus saving even more money.
But not all subscriptions are built the same, and not all Shopify subscription apps are built with both the merchant and customer in mind.
The sticky.io Subscriptions app for Shopify gives merchants:
Accessibility: Both expert and novice Shopify merchants can launch the user-friendly application quickly and easily. Less experienced merchants can learn the basics and scale their programs to offer more flexible subscriptions as they master the software, while experienced Shopify users can quickly scale their programs to offer advanced features such as rebill management and custom discounting.
No-stress setup: The native Shopify app integrates directly into your Shopify store, fostering an easy launch and management experience. The app is also ideal for merchants who use other third-party applications because it synchronizes with other Shopify apps.
Flexibility: Each subscription business is unique, and its technology should adapt to these differences. The sticky.io app offers flexibility both for merchants selling subscriptions and consumers using them. Merchants can easily manage subscriptions on behalf of their customers or let them manage their subscriptions through a customizable consumer portal. Additionally, merchants can use dynamic discounting and unique subscription offers like subscribe-and-save or prepaid to attract more valuable subscribers.
Holistic support: Our goal is to make selling subscriptions as simple as possible for merchants. The subscription app for Shopify gives merchants ease of management when it comes to inventory, customer communication, discounting and even onboarding. The app comes with self-service resources that include walk-through videos, Help Center articles and a live chat option through phone or email with responsive U.S.-based subscription experts.
The subscription economy is growing quickly, and merchants need to be adaptable to maintain success. It’s important to use a strong Shopify subscription app that allows you to start, scale and meet your business’s unique needs as the market changes.
For a limited time, use the sticky.io Subscriptions app for Shopify and pay $0 monthly platform fees for the first six months. The offer is good through December 31, 2022. Terms and conditions apply.