Increasing average order value (AOV) is a tried-and-true strategy for maximizing revenue from existing customers. You’ve been there, done that. However, now that the subscription eCommerce market is growing by leaps and bounds, you may want to consider how you can apply this strategy to your subscription customers.
Despite the increasing use of messaging apps and social media, good old email continues to outperform them all when it comes to customer acquisition, retention and revenue. And when you create personalized emails that deliver relevant messages and offers to specific audiences – like your most profitable or engaged customers – the power of email really becomes apparent. One survey concluded that segmented email campaigns (vs. one-size-fits-all campaigns) could increase email revenue as much as 760%! Another survey reported that targeted emails generate 58% of companies’ overall revenue. That’s nothing to sneeze at.
Use of SMS, aka “texting,” for eCommerce is on the upswing, but still widely underutilized, creating major opportunities – particularly with subscriptions and customer service, in our opinion – for brands that are quick to the punch.
If you don’t offer your customers a subscription rental option, maybe you should. The last five to six years have seen a continued shift in consumption patterns from traditional purchasing and ownership to an increase in subscription-based services of the future. According to McKinsey, the subscription eCommerce market has been growing by more than 100% year over year. Although this includes subscription boxes, like razors, food and cosmetics, there also is a growing trend for subscriptions that enable access over ownership, such as rentals for designer clothing, high-end luggage or sporting equipment. In fact, a study by UPS showed that Millennials are nearly five times more likely to rent online than other demographics.
If you can make a subscription model work for your eCommerce business, what’s not to like? Subscriptions can deliver more predictable revenue, more opportunities to upsell or cross-sell, and higher customer lifetime value (LTV). We work with many brands that ask us about subscriptions and how to integrate a subscription platform like ReCharge into their Shopify or Shopify Plus stores. We think subscriptions can be an exciting way to grow an eCommerce business, and have seen the most success with replenishment goods, like razors and vitamins, and curated items, like fashion and beauty boxes.
When your customers buy your products, it’s theoretically a sale that could happen anywhere – in a competitor’s online store, for example. But when your customers purchase your brand’s experience, lifestyle or community, they’re buying something unique they can only get from you. And that keeps them coming back.
As the eCommerce industry continues to boom, competition grows fiercer. To stand out from the pack, online brands must focus on the quality of their user experience. Leveraging the power of Shopify Plus helps online brands find the sweet spot for their target market. Discover how to maximize your store's potential by improving user experience with Shopify Plus.
Recent statistics revealed the online sale of physical goods in the United States in 2018 added up to $504.6 billion. By 2023, these sales are projected to exceed $735 billion. These staggering statistics prove e-commerce is growing and will continue to thrive in the years to come. E-commerce merchants must strive to deliver an outstanding user experience in this increasingly competitive industry where customer expectations are also growing. In this article, we explore the top trends you can expect to see in the exciting future of e-commerce and how your business can capitalize on the incredible opportunity they present.
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 with Shopify subscription services.
Thriving brands need an eCommerce platform that supports continued growth. Flexibility, scalability, and security are cornerstones to online success. Companies have many eCommerce platforms to choose from, making it a challenge to find the right solution. Things brands should be considering when evaluating their platform are:
1. Does this platform help stay up with ever-evolving ways customers are shopping?
2. Does this platform allow us to innovate in how we sell and the customer experience?
3. Does this platform continue to improve and adapt the technology to make our jobs easier?
4. Does this platform integrate with other leading-edge technologies in eCommerce?
Discover seven reasons why Shopify Plus is the top choice for top brands such as Dr. Axe, Magnolia, Kylie Cosmetics, Rebecca Minkoff, Gymshark, and more.