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    Home Digital Marketing Let Your Customers Buy More & Extend Customer Lifetime Value With Subscription-based business

Let Your Customers Buy More & Extend Customer Lifetime Value With Subscription-based business

Subscription business model
September 25, 2019

Let Your Customers Buy More & Extend Customer Lifetime Value With Subscription-based business

Do you remember back in the days when newspapers and milk delivery were still common in every household? Like a Newspaper subscription, which was paid monthly in advance with recurring payments, and guaranteed to deliver to your door-step on a certain period of time. 

Healthcare, Food, and Beauty Products are Big in Subscription-Based Model

Since consumer buying habits are trending toward a more simple and hassle-free shopping experience, more and more companies are jumping into the subscription space and seeing incredible growth. Harry’s is a shaving subscription brand with a mission to create high-quality shaving products that are available at a fraction of the cost of its competitors. Besides, it’s good quality, the brand also solved the pain point of running out of Sharpe razors when in need. 

Besides the product, some subscription-based business is offering superior end-to-end experiences. The subscription e-commerce market has grown by more than 100 percent over the past five years, and this strong growth has attracted established consumer brands to enter the space; oftentimes, consumers are looking for a tailored and personalized experience in subscription services.

PLAY! By Sephora, is a subscription makeup box, each month, Sephora curates a new round of boxes filled with up to $65 worth of beauty, skincare, and haircare samples. Subscribers have no idea what they’ll get prior to receiving the package, and it provides a dose of excitement and surprise every month, which not only creates a one of a kind shopping experience but also strengthen customer loyalty.  

Extend Customer Life Value and Build Loyal Customers With Subscription-based Model

Customer Lifetime Value is one of the key performance metrics to forecast the net profit attributed to the entire future relationship with a customer. And subscription business models are becoming a way for e-Commerce businesses to increase the LTV of the consumer. But how you might ask, shifting your business model to subscription-based allow merchants to focus more on customer retention rather than generate sales leads, and this breed customer loyalty. 

For instance, people usually stick to the same brand of vitamin product and would purchase it regularly. However, taking vitamins is also a habit that could easily be forfeit, just like how fast you could lose your motivation to go work out. To eliminate the risk of losing a customer, why don’t send your products to their door-front so they have to pay a visit to the drug store, and be distracted by other brands offering. With subscription-based service, customers can choose how often they would like to receive the subscription box and be charged automatically based on their plan. In conclusion, with subscription, it does not just mean regular businesses but also adds to the stability with a consistent flow of cash; customers can get free delivery and extra discounts. 

Try SHOPLINE’s Recurring Billing to Get More Reliable Revenue Stream & Build Customer Relationship

The e-Commerce structure is constantly changing, SHOPLINE is here to help you keep up with the trend, we’re here to provide more features and help merchants to integrate their online and offline retail channels. Up to now, SHOPLINE has helped over 150,000 merchants to run their businesses and bring growth to their revenue with a full-service e-Commerce platform. The recent launch of the “Recurring Billing” tool integrates seamlessly with SHOPLINE’s order management system; payment gateways and logistic methods to help your company stay connected to subscribers, manage accounts, and reduce churn. In addition, merchants can combine SHOPLINE’s promotional tool with the subscription service, to provide customer incentives to subscribe and retention. 

Your project is not done when they subscribe from you, your goal is to keep on studying your customers’ preferences and increase their loyalty with great customer experience. As old and new brands catch on to the benefits of a subscription model, the ranks of delivery boxes will only grow, but the ones that will truly last will be those that understand their customers and use great service and customer experience to ensure their loyalty. 

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Weiyi
Weiyi
Marketing Associate at SHOPLINE. A digital marketing nerd and a podcast fan. You can find her out in the woods once in a while but most of the times she’s glued to her laptop screen indoors.

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