The world of eCommerce has revolutionized the way we shop online, and subscription-based models have become an essential part of this evolution. In this article, we'll delve into five subscription model best practices that will help you grow your customer base and increase revenue.

Rise to the Occasion: The Subscription Model in eCommerce

In recent years, Yankee Candle recognized the shift towards online shopping and adapted their business model to meet consumer demand. By adopting a subscription-based approach, they not only satisfied their customers' needs but also set themselves apart from competitors. This marketing strategy led to an impressive 90% increase in customer retention and a 10-fold growth in subscription revenue within just eight months.

Give Subscribers the Control They Crave

One of the most crucial subscription model best practices is giving subscribers control over their orders. By allowing them to skip or swap products, you build trust and reduce churn. Research shows that subscribers who can skip an order last 135% longer. Thomas McCutchen, a subscription expert, emphasizes the importance of empowering customers: "When you give them more control, they'll start taking actions other than cancel."

Remove Friction from Adding One-Off Products

Seamless interactions with personalized product recommendations can significantly boost average order values. In fact, a survey by Barilliance found that such experiences result in a 369% lift in average order value. To remove friction, extend subscription incentives to one-off items and remind subscribers of these benefits via email or SMS.

Make it Easy and Desirable to Subscribe

Take the guesswork out of signing up by elevating your subscription experience across multiple customer touchpoints. KIND Snacks is a great example of how to keep subscriptions top of mind and make signing up a no-brainer for customers. By highlighting their curated subscription box on their homepage and providing an easy sign-up process, they've grown their subscriber base by 50% since launching their subscription experience.

Build Value into Your Messaging and Pricing

Subscribers must feel that buying more on a regular basis results in greater value. According to McKinsey, "good value for price" is the top reason for becoming a subscriber. This value can take the form of lower price points or generous discounts. For instance, Chemical Guys gives subscribers a deeper discount on their 12-pack than their 6-pack, making it a more attractive option.

Validate Your Subscription through Influencers

Influencers are an effective way to reach potential subscribers and validate your subscription service. The 2022 Influencer Marketing Benchmark Report estimated a 9% increase in usage of ad-blocking tools over 2021, with the average global desktop ad-blocking rate reaching 43%. By partnering with influencers who align with your brand values, you can branch out from traditional advertising methods.

By incorporating these five subscription model best practices into your eCommerce strategy, you'll be well on your way to growing your customer base and increasing revenue. Remember to give subscribers control, remove friction, make it easy and desirable to subscribe, build value into your messaging and pricing, and validate your subscription through influencers.