Subscriptions: One of the most popular buzzwords in the eCommerce industry for 2016. Those who are using them know exactly why. Subscriptions are a great alternative to the standard offering of eCommerce products as a one-time purchase. If your customers buy your product once, are you sure they are going to come back? Don’t let your customers become one-night-stands – offer subscriptions on your site to keep customers engaged and keep your wallet full.
Reason 1: Ability to Spend Lots on Subscription Customer Acquisition
You offer a $30 subscription, and it costs you $15 to produce. Normally, for a one-time purchase, you wouldn’t offer that product for anything less than $15. But, with subscriptions, you may be able to take a loss in the first month in order to entice your customers to subscribe. Even if you only charge $12 the first month, you’ll make it back with their subscription in the following months. Everyone loves a discount, and 100% of the top eCommerce sites (who are converting the most customers) know this – if you can bring your customer in on a deal, you will have a customer for life.
Reason 2: Automatic Sales Make For Happy Merchants and Customers
As eCommerce merchants, you should always be thinking about your customers. Subscriptions are an easy way to make sure that your customers always have their product on time, without any extra work on their end. Their card is charged and seamlessly, and voila, you are happy to have an automatic sale, and your customers are happy to have your product.
Reason 3: Forecasting Revenue Easily With Subscriptions
By offering your product in a subscription format, you should be able to easily forecast what type of revenue you will generate on a month-to-month basis. Since you will have a general idea of how many customers you have, and how much their subscription costs, this is easy math for any eCommerce merchant. You don’t have to worry about who will come back for more and who won’t, since they will be charged automatically each month.
Reason 4: Streamlining Your Offerings = Quick Checkout Process
This is a constant struggle for any eCommerce business – how do you make your checkout process easier? About 67% of carts are abandoned these days because of friction at checkout. Don’t overwhelm your customers from the second they get to your site – if you can offer your customers a few options (by bundling them in subscriptions), rather than hundreds of products, your customers will be much more likely to be able to choose.
Let’s be serious, nobody likes a one-night-stand. We want love and affection from customers, not complicated relationships where we worry when we will hear from them next. Don’t become heartbroken – offer subscriptions on your eCommerce site.
If you need help or advice on how to create a successful subscription business model for your eCommerce site, our conversion consultants are here to help (or should we call them relationship experts?).