New to subscriptions?
You came to the right place.
Turn your one-time transactions into long-term customer relationships. Implementing subscriptions gives you predictable revenue, reduced churn, and higher average order values.
The subscription market is predicted to grow to nearly $500 billion by 2025. It’s time to capture your slice of the pie.
Increase customer lifetime value (LTV)
- Repeat customers are 50% more likely to make another purchase than new customers, and they spend 33% more on average
- Subscriptions allow you to foster ongoing relationships with your customers that keep them coming back—in fact, the majority of consumers (60%) have had the same subscription for over a year
- Maximize the time you have with your customers and give them a seamless experience to do business with you
- Avoid passive churn by allowing for flexible checkout options like one-time purchases, skipping a shipment, or swapping products
Increase average order value (AOV)
- Implementing subscriptions lends itself to increased cross-sell and upsell opportunities
- In 2020 alone, merchants saw an increase of 6% in AOV across verticals, meaning customers are engaging more than ever with subscription brands
Types of subscriptions
Curation is the most popular subscription model (55% of merchants choose this subscription type). Here, merchants curate a box of one or more products, which are packaged together and shipped at a regular cadence.
The second-most popular subscription model (32% of merchants choose this subscription type), replenishment offers the same product on a consistent basis. It’s also referred to as “subscribe-and-save” and works best for products that are consumables (ones that most people use daily).
The third and fastest-growing subscription model (13% of merchants choose this subscription type), access is most commonly used to offer a membership or gate availability. This model is growing quickly because of the wide variety of benefits merchants can offer their subscribers.
Increase LTV with subscriptions
Subscriptions + One time purchases
Subscriptions + OTP
For this exercise, we analyzed our book of business of 15k merchants. We calculate LTV using the following formula:
Subscriptions only, multiply by 1.7
Subscriptions + One time purchases, multiply by 2.3
Getting started guide
- 1. Determine your subscription business plan
What offerings do you plan to allow for your recurring subscriptions?
- 2. Sign up for Recharge for free
Try out Recharge for free to walk through setting up subscriptions for your store.
- 3. Set up your products for subscriptions
Using the onboarding flow in Recharge, set up your checkout flow to allow for subscription selections.
- 4. Ensure your logistics and shipping are in order for recurring fulfillment
Ensure that you are able to support regular purchases of products on a recurring basis.
- 5. Turn on subscriptions
Try out a test order, then go live!
- 6. Let your customers know!
Get in front of your most loyal customers and share the great news that they can subscribe to your amazing products.
- 7. Gather customer feedback often
Check in on your analytics with a select number of your customers to ensure their subscriptions are working well for them. Test new suggestions to continue to enhance the customer experience.
- 8. Optimize your subscriptions with key integrations
Leverage the hundreds of integrations with Recharge to create a tech stack that meets the needs of your customers at every phase of their journey.