MAXIMIZE LIFE TIME VALUE & RECURRING REVENUE
We integrate custom shopify subscriptions to maximize customer loyalty and LTV
Given that it is expected to grow from $15 billion in 2019 to $473 billion by 2025, the ecommerce subscription sector is a sizeable opportunity for both established and aspiring businesses. With resources such as data analytics surrounding business cycles and revenue streams provided by subscriptions, your company can access information and details to plan ahead and grow effectively over the long term. It can cost five to ten times as much to get a new customer as it does to keep an existing one, highlighting the importance to add subscriptions to Shopify in order to focus on maintaining relationships. Offering the very best subscription experience to your customers is vital for retention.
WHY ADD SUBSCRIPTIONS
Adding subscriptions to Shopify or Shopify Plus stores help create a seamless ecommerce experience for you and your customers. It establishes predictable and consistent recurring revenue to aid in future planning, management and business expansion, so that you can achieve your long-term strategic goals and brand strategy more effectively. In addition to this, when you add subscriptions to Shopify, your website can turn one-time buyers into devoted subscribers and followers of your brand. Shoppers are able to purchase from your website more easily and flexibly which can encourage loyalty and promote repeat purchase options in the future. Shopping experiences become more fluent for the user when a subscription is involved, promoting retention and lifetime value.
WHAT IS A SHOPIFY SUBSCRIPTION SERVICE OFFERING
In basic terms, subscription ecommerce businesses give online customers an easy, tailored, and less expensive option to make repeated purchases of the things they want and need. When a merchant decides to add subscriptions to Shopify, they can be used as tools to support increased flexibility for customers looking to repeat purchase high frequency products such as food, drinks, skincare or beauty boxes for example, as and when they need them. This eliminates the need for the customer experience to be hindered by having to manually go through each page of the checkout process with every purchase. Nowadays, the shopping experience is expected to be as quick and seamless as possible, the longer it takes for a user to get to the cart and checkout, the less likely shoppers will want to buy with frequency.
When a merchant chooses to add subscriptions to Shopify, it not only increases price affordability for the customer through subscription discounts, but it also helps convert one-time shoppers into recurring (and frequently lifelong) customers of your website. With consistent monthly recurring income flowing in, merchants can access data analytics and information to predict their future sales and growth figures with accuracy.
HOW DOES SHOPIFY WORK WITH SUBSCRIPTIONs
Shopify now supports subscriptions natively within it’s platform meaning that customers can add subscription items to the cart and still remain within the Shopify checkout when they wish to purchase. But how does it work? Shopify released extra modules of data called “selling plans” which is a special piece of code that commutes to the Shopify checkout that an item is a subscription item and that the payment should be recurring by a specific interval and amount.
However, it does not stop there. Shopify does not manage the UI and dashboard for managing your subscribers – instead, it simply offers the facility to charge your customers on a recurring basis via Shopify’s native checkout. To physically set up subscription products, manage subscribers and gain access to subscription reporting you’ll need to opt for a subscription app provider.
It is important to note that Shopify has extended it’s platform to accommodate subscriptions more appropriately with specific features. Examples include filtering customer lists directly within Shopify by the status of subscription. You can also set up specific shipping rules for subscription customers such as offering free or unique shipping rates.
What are the benefits of adding subscriptions on shopify
When you know how much income is coming into your Shopify or Shopify Plus store each month, everything runs a bit more smoothly, from admin and management support by organizing your inventory to anticipating sales. It also means you are aware of the amount you can put back into expanding your company. Questions about finances and number of sales become clearer with subscription data so that you have that peace of mind and capacity to focus on other areas of your business such as customer support or order processing to keep your customer base happy.
What’s more is the improved affordability for customers as subscription options can facilitate discounts on billing. Businesses using a pay-per-product pricing model are continually needing to make content, marketing and sales investments in order to grow their client base and turnover.
Improved lifetime value and aov
Regular transactions provide deeper insights into your customers behavior, which enables you to constantly improve the personalized experience you provide and, in turn, keepers users and shoppers coming back. This virtuous loop is made possible by the recurring nature of subscriptions. When done right, subscription businesses produce incredibly devoted recurring customers who spend 67% more than new ones. This is the foundation of customer lifetime value (LTV), which is one of the key elements and features in determining a company’s success.
In addition to this, with a subscription model, you’re uniquely positioned to generate more turnover from existing customers because you have continuous contact with your customers when you add subscriptions to Shopify, you’re building a trusting relationship with them. This makes it easier to market additional products to them, because they already know you provide a trusted and valuable service.
UNIQUE AND PERFECT