4 Tips for Adding Subscriptions to an Existing Business

Aside from reducing the pressure of acquiring net new customers, adding a subscription model offers ecommerce businesses a predictable form of revenue when compared to traditional businesses. Without subscriptions, business can be unpredictable given the fluctuations in traffic and conversions, especially during inflationary times. Through subscriptions, brands can more accurately forecast and understand how much revenue will be captured each month, and therefore make more informed business decisions.

Based on a report by eCommerce Fuel, brands that offered subscriptions grew 26% faster and were 14% more profitable than those that did not. The report also found that brands that offer subscriptions see about 30% of their monthly income derived from them. However, there is more to it than just adding subscriptions to their business in order to see impact. In this piece, we will discuss four factors to consider when building out a subscription offering for an existing business.

Ready to start growing your business through subscriptions? Read on!

1. Match your subscription to your non-subscription shopping experience

When a brand’s subscription experience seems disconnected from the rest of its ecommerce experience, it can cause confusion, which can get in the way of growth and even brand loyalty.

Adding subscriptions does not mean building a new storefront, but rather adding a new product. Make sure that your subscription experience is aligned with the rest of your brand, and that the terms are straightforward and the purchasing process is seamless. The more aligned your non-subscription experience is with your subscription experience, the more enticing it will be for existing customers to become subscribers and stay loyal to the brand.

2. Build a cohesive and brand-consistent customer portal

When developing a subscription model, it’s important to note that this is not the time to experiment and try something new. It’s essential that the customer portal you deploy matches your brand aesthetics and identity, which includes everything from fonts to colors to logos.

A customer portal that diverges from your branding can confuse customers and raise questions about the legitimacy of your subscription program. This likely will have a negative impact on your conversion rate, reduce customer retention and hinder your growth.

Most subscription tools that work with ecommerce platforms like Shopify offer customizable portal editors which let merchants create a seamless customer experience. All without needing to hire an agency to build out the experience and or connect your subscription experience to your “regular” experience. Even for those that aren’t technologically savvy, most subscription solutions make it simple to integrate subscription offerings with ecommerce platforms in a matter of minutes. To get started, simply add the subscription app from the Shopify App Store (or the app store connected to your ecommerce platform), and follow the directions to build it out in your store.

3. Make it easy and frictionless to subscribe

A frictionless subscriber experience is just as important as aesthetics. Not only will it make customers fond of their purchase, but also reduce the need for customer support when things go wrong.

Although it is not uncommon to get locked out of an account or to forget passwords, consumers expect the subscriber experience to be fast and uncomplicated. Brands can reduce customer frustration in the first place by enabling features like Upscribe's 'Passwordless Login' for subscribers, where customers receive a secure email they can click to log in instead.

Another way to make the subscription experience as seamless as possible, is to allow subscribers to manage their subscriptions in more than one way, such as directly through an email or by sending a SMS. Most subscription solutions allow you to respond to a text message or email with predetermined quick-actions that help users manage their subscription more easily. For example, to skip a subscription order, you can simply reply by texting “skip” back when you are sent a text message confirming your next subscription shipment. This will eliminate any friction commonly associated with having to login to a porta and also create a better customer experience.

Bottom line: letting customers quickly get what they want is key. Delivering a frictionless customer experience will help build a loyal and growing subscriber base, as subscribers will likely be more inclined to stay with your brand. And a happy customer turns into a more valuable customer that spends more money with your brand.

Based on Shopify research, brands have a 60-70% chance of selling to an existing customer, versus only a 5-20% chance of selling to a new customer. By creating an unparalleled experience that will keep subscribers from churning, the chances of selling additional products to them will help you increase the metrics that may matter most for your business such as the average order value and the customers lifetime value.

4. Leverage data to make smart recommendations

Whether you use Klaviyo or another email service provider (ESP), chances are you have access to your customers data, which is more readily available than ever through these platforms. But it is not enough to just have access to the data — brands have to analyze it to deliver smarter, more on-target recommendations that improve their subscription experience.

Ways to use data to personalize customer experiences:

Cross-selling. Giving subscribers a discount on an item that pairs well with their subscription. For example, if they receive a pound of coffee every month, send them a coupon for a new coffee mug. In the message with the promotion, talk about how it’s the perfect accessory.

Giving subscribers access to an exclusive pre-sale. This will not only make them feel special, but it also gives you an opportunity to increase their lifetime value (LTV) by selling them new and or complimentary products to their subscription.

Sending a message on subscription anniversaries. This small engagement point can make a customer feel valued and is a way to differentiate your brand from competitors.

These touchpoints and sample engagement tactics are a few ways to show subscribers that they are valued. They go a long way in building your brand, developing loyalty and creating an experience that subscribers remember. The suggestions above are three key foundational elements to consider when building out your subscription experience.

Building out a subscription offering for your business can help you take your business to the next level. Based on a recent report from eCommerce Fuel, ecommerce brands that offered subscriptions grew 26% faster and were 14% more profitable than those brands that didn’t offer them. Brands that offer subscriptions also see about 30% of their monthly income derived from subscriptions, which could add the support that your business needs.

As with anytime you build out a new feature to your store, it’s best that you get the key foundational elements in place before adding more advanced features. Get started building out your subscription experience with the help of tools such as Upscribe, that make adding subscriptions to your ecommerce store frictionless and easy.