Jewelry. Chef-made meals. Healthy snacks. Software. More and more businesses are employing e-commerce subscription models. It is embraced at a rapid pace by consumers. Subscription models not only build customer relationships but are also a way to cultivate loyalty.
Take Adobe for example. They basically discontinued its boxed copies of Creative Suite (including Photoshop) and now offer a cloud-based subscription service called the Adobe Creative Cloud. The company says that customers vastly prefer the cloud-based subscription options over stand-alone downloadable suites. Instead of waiting to bundle all updates into a major CS uplift, the Creative Cloud gives Adobe the ability to roll out upgrades when they can.
Traditional businesses can innovate like Adobe at a similar scale. Consumers will increasingly look to companies to curate and regularly deliver digital and physical goods such as clothing, accessories or food.
If you’re already engaging your consumers with subscriptions, here’s how you can prolong your subscriber retention rate.
- Let Your Shoppers Pay for Subscriptions via Wire Transfer – Sell subscriptions by offering your shoppers with more payment type options. With BlueSnap, the first payment method released is a wire transfer, which is great for merchants with B2B products and in countries where credit cards are not a popular method.
- Increase Your Subscriber List – Once you have a subscriber registered for a trial of one of your products/services, you are one step closer to converting them to a paying shopper. Utilize the different pricing plans, where you can offer trials, coupons, and reduced payment periods.
- Enable Your Shoppers to Manage their Subscriptions – Provide your shoppers with their own account to manage their active subscriptions and payment details.
- Offer Targeted Up-Sells – Give your shoppers a chance to upgrade their subscription and add an additional incentive by providing a coupon!
- Don’t Lose Out on Subscriptions that Can Be Saved – There are many reasons why the payment for recurring subscription might fail, such as shoppers losing their credit card, or if the card was lost/stolen/expired, insufficient funds to cover the cost of the subscription, or connection issues with bank’s network. Whatever the reason, you can save some of these subscriptions, simply by offering a grace period to allow the shopper to update his payment details. Recommended grace period differs depending on the product/service being sold, but is usually between 15-30 days.