Subscription marketing is one of the leading trends in the field of ecommerce marketing these days. This form of marketing is changing the way in which retailers do business and how consumers buy a product. Subscription model is required for business success and continuous growth as it caters to a customers need. They are also popular because of the meaningful benefits they provide to both merchants and consumers. Consumers get products tailored as per their preferences and habits, while merchants get predictable revenue and insights into consumer behavior, and preferences.
We came across a blog by Recurly, which illustrates how subscriptions are pumping fuel to the bandwagon of ecommerce. In an infographics, they have beautifully explained the importance of subscription service and the changes it brings. Recurly has taken the holiday season as an example to explain their point. The 2015 holiday period, including Black Friday and Cyber Monday are taken into consideration. More than 450 business-to-consumer subscription based merchant transaction volume is accommodated in their infographics report.
The report suggests, merchants’ same store sales increased by an average of 83% on Cyber Monday when compared to the sales of the previous year. When they compared the figures of the report with industry figures for online sales, another study by Adobe, grew by only 12% year over year on Cyber Monday. During the same four-day sale period, even sales for Recurly grew too. Cyber Monday in particular saw more sale.
According to Recurly’s data, their subscription-based merchants experienced a 230% increase in their total payment volume (TPV) on Cyber Monday of last year compared to the other days. Cyber Monday especially saw more coupon redemptions, proving deals and discounts to be a leading and effective marketing tactic.
No matter which industry your business belong to subscription commerce is a definite key to success. All business wants revenue, all customer wants satisfaction and subscription plans through recurring billing can cater to that. Each industry has different needs, subscription caters to just that. Some noteworthy subscription providers to help you achieve your business goal:
A simple software that adapts to every recurring billing scenario. Seamless integration of websites with Chargify API makes it easier to customize. The tool helps in building extraordinary customer relationships and maintaining them. Intuitive business dashboard gives access to customer analytics making it perfect for use.
A simple and flexible Magento subscription extension that delivers result immediately. The extension is easy to use, generates recurring revenue, increases customer lifetime value, streamlines fulfillment processes and does more. With Subcom, you can create single and multiple products. The tool is excellent allows users to work with it and implement measures without difficulty.
An affordable way to start subscription service with this tool. Subbly is an all in one solution that empowers businesses and individuals to set up subscription marketing. You do subscription marketing with ease while Subbly handles all the technical details.
Another great tool to aid in subscription management and recurrent billing. Stripe delivers payment infrastructure for your store, optimized checkout services, and perform other tasks without much hassles.
The hype of subscription marketing has reached the farthest corners of all trades. Small businesses to big ones all are accepting the fact that without subscription marketing, there is no easy way to get better insights into customers and get profitable returns. Here are a few companies from various sectors adopting subscription commerce.
- Art In A Box– Art and Culture
- La Bella Box– Artisan
- Bluum– Baby
- Beauty Army– Beauty
- Bespoke Post– Curated Products
- Brit Kits– Craft and Hobbies
- Conscious Box– Eco products
- Fab Kids– Fashion Kids
- Manpacks– Fashion Men
- Shoe Dazzle– Shoes
- Bulu Box– Fitness and Health
- NoToxBox– Food and Drink
- Men Are Useless– Men Grooming
- Little Pnuts– Miscellaneous
- Barkbox– Pets
- Dejamor– Relationship
Facts to Tweet
- Subscription is a gift that keeps on giving, deals to customers, data to merchants.
- In 2013, over $300m was invested in subscription e-commerce. The number grows every year.
- According to Bain & Company, “it costs 6-7 times more to acquire a new customer than to retain an existing one.
- Recurring billing & subscription increases customer retention rates by 5% increases profits by 25% to 95%.
- Subscription increases agency income, creativity, innovation, customer satisfaction, & loyalty.