Get the guidance to navigate complex billing technology and strengthen customer relationships. Dive into this webinar recap featuring insights from our SVP of marketing and a guest speaker from Forrester.
January 25, 2023
Amidst the decline of third-party cookies, merchants are scrambling to find new ways to collect important information to keep customers coming back. Many of them are turning to subscription data.
Our senior vice president of marketing Thomas Marks sat down with guest speaker Lily Varón, senior analyst at Forrester, for a webinar discussion on the rise of recurring billing technology and how it will impact the future of ecommerce.
As customer acquisition costs rise, merchants are working hard to extend customer lifetime value with quality products and services. Our November 2021 Subscription Commerce Conversion Index gave us valuable insight into ecommerce features that attract consumers. This includes:
One of the main reasons consumers enjoy subscriptions is the convenience they offer. If a website isn’t also convenient and easy to navigate, users are quick to exit. Merchants are at risk of losing more than $2.2 billion if they fail to offer key features that provide seamless subscription experiences. This includes everything from a navigable website to smooth delivery and communication with the subscription merchant.
Running an ecommerce brand is now more than just selling products online — today’s consumers want to buy from brands that have compelling background stories and ideals.
“We’re seeing more values-based consumers that are deliberate about voting with their wallets,” said Lily. “They seek out brands that align with their personal values.”
This is pressing brands to articulate their business models to show consumers what they’re all about by experimenting with different partnerships, manufacturing processes and marketing approaches.
In 2022, it’s all about the consumer. As options expand for buyers, merchants need to keep adapting to consumer expectations to stay successful. Especially when it comes to recurring billing, consumers will only renew a subscription if they’re entirely satisfied with the products and service. Collecting customer data from surveys and buyer trends will keep you informed on what subscribers are looking for.
Skyrocketing acquisition costs are pushing brands to foster long-term relationships with customers.
“Some brands are seeing acquisitions costs go five times higher than before the pandemic to convert traffic,” said Thomas. “Everybody is competing for the same audience in the direct-to-consumer ecommerce space.”
To beat competitors and keep long-term customers, brands can leverage subscriptions to reduce the need to acquire new customers at costly rates. Subscriptions allow merchants to deliver ongoing value, personalize the user experience and allow consumers to manage their orders and recurring payments.
“In many cases, a subscription fits into a larger ecosystem,” Lily told webinar attendees. She explained how brands can use recurring billing as a tool to extend customer lifetime value alongside other features that appeal to consumers. “It might be incorporated into a generic ecommerce model that might also have events and VIP treatments.”
Adaptability is an essential trait for any successful ecommerce business.
“When you start a subscription, you actually know the least information about your customer,” Lily explained. “It is by continually engaging with them and the tenure of your relationship that you can finetune the model to improve the subscription.”
The longer you offer subscriptions and analyze the data they provide, the more improvements you can make to your product and user experience to keep growing your business.
Consumer data is becoming increasingly more difficult to collect as third-party cookies become a thing of the past. Since data is the backbone of any good ecommerce brand, merchants are looking for alternative methods to collect data. The recurring billing model is not only more predictable and linear, but it gives merchants valuable data from ongoing relationships with customers.
“Consensual data from recurring billing allows you to develop a 360-degree view of the customer,” said Thomas. “This empowers your ability to engage and launch new products based on what your customers like, thereby increasing that predictable revenue.”
As the ecommerce environment continues to evolve, merchants need a forward-looking mindset to stay on top of trends. The right recurring billing technology allows you to be adaptive, creative and resilient.