Subscription services streamline the process of accepting recurring payments. Consumers benefit from a one-and-done approach to online shopping, so they don't have to remember items or services they use regularly. And merchants score the steady stream of income that comes from subscription payments. Discover how leading brands on the Shopify Plus platform benefit from using ReCharge subscription services.
The Subscription Model
The way consumers are shifting from making pay-per-product purchases to online subscriptions is referred to as the subscription economy. Some of these relationships resemble renters while others follow a traditional subscription or membership model. Examples of some of the most popular subscription purchases include Chewy, Dollar Shave Club, Blue Apron, Hubble, and Daily Harvest. People want to subscribe to their favorite products and services so they never miss anything new. Consumers appreciate the convenience of subscriptions, with whatever they need arriving on-schedule each month. Plus, they are looking for value, exclusive access to new products, and personalization from their subscriptions. And businesses enjoy steady streams of income from subscriptions, even when sales are slow.
“The subscription eCommerce market has grown by more than 100 percent a year over the past five years.” - source
Research reveals 15 percent of online shoppers have signed up for at least one subscription to get products on a recurring basis. The types of subscriptions we most often see are:
2. Curated boxes
3. Exclusive access to membership benefits
Whether its auto-replenishment, curated boxes or a membership Shopify Plus and ReCharge make a powerful pair. Shopify Plus platform coupled with the ReCharge subscription is a flexible solution for online merchants. Consumers want a new consumption model, and brands appreciate greater customer engagement with a significant impact on their bottom line. Companies are learning how to leverage the available data and resources to fuel exponential growth.
Reasons Why We Love ReCharge + Shopify Plus
1. Both give us access to an extensive and flexible API
2. ReCharge’s Theme Engine allows us to build a customized ReCharge customer portal with best in class UX and features.
3. ReCharge integrates not only with Shopify Plus Enterprise and Shopify but other leading technologies from ESP to loyalty.
Build Long-Term Relationships
Subscriptions are the first step to building long-term relationships with your most loyal customers. Regular automated purchases can build brand awareness, create brand advocates and drive loyalty, leading to an ongoing relationship between the company and the customer, leading to high volume traffic. Brands need to nurture the connection by extending special offers and discounts to their most loyal subscription customers. Make it easy to edit, skip, or opt out of the subscription service, so customers never feel cornered or trapped. People always come back for something great. Providing customers with convenience, flexibility and savings build retention and grows your LTV per customer. Leveraging the flexibility of the ReCharge theme engine and other API’s allow you to give customers the flexibility they need to fully manage their subscription while boosting retention.
Personalized and highly segmented marketing campaigns are more effective than generic ones. The ReCharge subscription app integrates seamlessly with other third-party apps such as Klaviyo, Smile.io, Swell and Loyalty Lion. Leveraging Klaviyo you can send targeted email campaigns and offers specifically for your active subscribers. Using loyalty or rewards programs like Smile.io, Swell or Loyalty Lion offer subscription customers double rewards. Leverage tools like Shopify Flow to look for active subscriber tags on customers in Shopify to offer active subscribers free shipping on their one-time purchases using Shopify Plus checkout scripts.
Shopify Plus and ReCharge are the dream team that fuels success for online brands of all types. Use them to get a piece of the growing subscription market. Subscription commerce merchants increased sales from $57.0 million in 2011 to more than $2.6 billion in 2016. Keep customers coming back for more by offering a subscription to the products they need most. Remind them they'll never run out of something important if they subscribe to the product.