As ecommerce merchants struggle with high acquisition costs and price-conscious consumers, subscriptions offer financial stability and brand loyalty. Our product team explains how and why you should start selling subscriptions on BigCommerce.
January 25, 2023
Tightening data regulations, growing acquisition costs and an uncertain economy are influencing BigCommerce merchants to focus on long-term retention rather than short-term revenue gains. During this time of financial uncertainty, many ecommerce brands’ survival hinges on their ability to maintain their current customer base.
“Your marketing dollars are being stretched thinner, customers’ wallets are growing tighter and shoppers are getting more selective with their spending,” said Collin Robinson, product marketing manager at sticky.io. “All of these issues point to retention and revenue sustainability as the solution.”
Notable retention trends include email newsletters, personalization and recurring orders — three factors included within a robust subscription program. Collin recently sat down with Greg Austin, our director of sales engineering, to discuss the benefits of selling subscriptions on BigCommerce and tips for starting and scaling your program.
Subscriptions allow customers the exploration, value and convenience they crave while also giving merchants several benefits, such as:
In a volatile economy, selling subscriptions gives merchants the stability they need to continue growing their business and brand.
“A business model that’s solely predicated on one-time purchases might see surges in customer buying early in the relationship, but their attention shifts elsewhere over time and revenue dwindles,” Collin included. “A business model that incorporates one-time purchases and subscriptions gets the best of both worlds.”
While it may seem easier to bring in revenue through large one-time orders, subscriptions supply that low-maintenance recurring revenue that powers your business through times of uncertainty.
Accompanied by a volatile economy is an unpredictable global supply chain. However, subscription merchants are in a fortunate position — they can roughly predict future product demand before it’s too late. For example, a candle company that has 125 active subscriptions knows exactly when these subscribers expect their candles, how many to send and their level of inventory after each shipment. This allows merchants to better plan the shipping and fulfillment process to avoid possible disruptions.
Subscription data allows merchants the information they need to create personalized offers and individualized communications with their customers. Brands can build deeper connections with consumers and drive customer obsession by using customer data to give subscribers opportunities to discover new and exciting products.
“Subscriptions can give you deeper insights into your customers at a time when they’re more protective than ever of their personal data,” Collin stated.
Not only can subscription data keep customers engaged, it can also reengage reluctant subscribers. Merchants can use individual subscriber data to identify and save customers who are at risk of churning by creating personalized offers and messaging.
Finally, subscriptions attract high-value customers who will stay loyal to your brand for months or even years to come, essentially lowering average acquisition rates and extending your customer lifetime value. The combination of personalized offers, frequent communication and recurring orders keep subscribers engaged and content with their subscriptions. Ecommerce success depends on the customer experience, and subscriptions bring subscribers to the forefront of that experience.
While you may know which product you’d like to offer as a subscription, there are more pieces to the subscription puzzle. The sticky.io Subscriptions app for BigCommerce considers all the details you may be overlooking, such as:
Ecommerce is quickly changing — you need the tools to adapt and meet customers’ needs as they evolve. The sticky.io Subscriptions app for BigCommerce allows merchants to create deeper connections by utilizing the power of personalization and adaptability.