With increasing competition in the eCommerce market, merchants are trying innovative strategies to offer new experiences to customers.
One such creative strategy is combining multiple Shopify elements, for instance, bundles, subscriptions, and loyalty programs.
While all three are individually effective marketing strategies, when combined, they offer various benefits.
In this blog, we explore how bundle and subscription integration with loyalty programs can help increase revenue, improve customer lifetime value (CLV), and drive higher retention rates.
Want to learn how to implement this strategy in your Shopify store?
Let’s begin!
Why bundle and subscription integration?
Subscription, bundle, and loyalty program, each has a different value-add for customers. For eCommerce brands too, these three elements offer specific advantages.
For instance, subscriptions provide convenience of automating recurring revenue on Shopify; bundles increase average order value (AOV); and loyalty programs improve long-term customer-brand relationship and repeat purchases.
Now imagine if these three are integrated into each other. Integrating the three strategies helps:
- Improve customer lifetime value (CLV)
- Make customers’ shopping experience exciting
- Develop deeper brand loyalty
- Drive recurring revenue for Shopify stores
- Combines the benefits of all three – value, convenience, and loyalty
One of the best examples of bundle and subscription integration is streaming subscriptions.
Bundle and subscription integration: recurring revenue for Shopify stores
In this section, we explore how integrating bundles and subscriptions helps Shopify stores and customers, and how to go about it.
Benefits of offering bundles on a subscription model
1. Increase average order value
Bundles include multiple products, typically, at a discounted price. This perceived value appeals customers to purchase more, thus, increasing AOV. Add to it, the convenience of subscriptions that allows customers to make recurring purchases. Recurring bundles in subscriptions means increased AOV.
2. Improve customer retention
When customers feel satisfied with their purchases, they tend to stay loyal to those brands. This has a positive impact on the customer retention rate. Customer retention tools make it easy to include bundles in subscriptions and offer cross-selling opportunities, enhancing the perceived value of the subscription box.
Additionally, discounted pricing, upselling, and personalization via tailored product selection, all lead to more satisfaction and stronger brand and customer bonds.
3. Recurring income
Customers who tend to sign up for subscriptions tend to be more loyal and show more engagement. The fact that they signed up for long-term subscription means they like the brand and the products. For brands, this helps generate recurring revenue.
Add bundles to subscriptions, and it leads to not only increased AOV but recurring high revenue. This also enhances operational efficiency for brands by making orders predictable, which helps with inventory management.
Bundle and subscription integration: use cases
While a combination of bundles and subscriptions has many benefits, it may be suitable for some products and industries, more than it is for others. Let’s look at the best use cases for combining bundles with subscriptions:
- Daily consumables, such as tea, coffee, groceries, and other food items. These are recurring purchases and can lead to good bundle ideas
- Pet supplies, such as treats, pet food, pet grooming products, toys, etc., making pet management convenient and easy for pet parents
- Personal care products, such as skincare, moisturizer, shampoo, etc., can be clubbed into bundles. They can also be personalized based on customer needs
Example:
Combine bundles and subscriptions with Appstle
Appstle Shopify app makes it easy to combine bundles with subscription. The Shopify loyalty app is designed for Shopify and Shopify Plus stores, with built-in features that reduce technical complexity and automate processes. Here are some Appstle features:
- Flexibility to create bundles that can be offered as one-time purchase as well as subscription
- Set discount levels for bundle purchases
- Automatically adjust bundle availability based on stock levels
- Prevent overselling, maintaining accurate inventory
- Delivery frequency options for bundle subscriptions
- Customer self help for adjusting delivery schedule, skip deliveries, modify bundles, etc.
- Automated communication throughout subscription journey
Bundle and loyalty integration: rewarding smarter
Just like bundle and subscription integration, bundles combined with loyalty programs also offer unique and specific benefits. Let’s explore all about integrating bundles and loyalty programs.
How to use bundles to reward loyal customers
- Offer incentives on bundle purchases to loyalty members
- Offer a bundle as reward to VIP loyalty program members
- Provide exclusive access to bundle deals only to loyalty members
- Customize loyalty programs to implement creative strategies
- Create exclusive bundles for high-tier loyalty members that aren’t available to other tiers
- Create bundles with premium products, limited-edition items, and unique
How to offer points on bundles
There are many ways to offer points on bundles via loyalty programs. For example, a straightforward approach is to offer points based on the bundle price, just like you do on normal purchases.
Another way to offer points on bundling strategies is to assess the average order value (AOV) and whether there’s potential for repeat purchases of these bundles by the same customers. In such cases, you could increase points.
Tiered loyalty programs can have their specific points accumulation structure. For instance, standard points on small bundles and bonus points on larger bundles. Customers can also be offered points based on the tier they belong to – more points for higher tiers.
How to set up bundle subscription integrations
Setting up bundle subscription integrations with loyalty programs can seem complicated as there are multiple elements involved. Here are some tips and steps to follow:
App combinations that work well
Effective integrations require tools that offer API connections and integration capabilities. For example, Appstle Subscriptions App integrates easily with Shopify’s built-in bundle features. Moreover, Appstle also integrates with third-party apps such as Smile.io, LoyaltyLion, and Yotpo, among others. Let’s look at how some of these integrations help:
- Smile.io and Appstle integration enables earning and redeeming points on subscription bundles. It makes automatic points allocation for recurring subscription orders and redemption easy. It also enables tier-based access to subscription bundles
- Integrations help automate workflows, which help bundles in many ways. For instance, automating loyalty points on purchase of bundles, updating customer tier status, personalized notifications.
Key settings to check for integration
Check these settings in your bundle and subscription integration structure to ensure smooth functioning and clarity for customers.
1. Discount hierarchies
If integration is not done properly, it could lead to complications. For instance, it’s essential to set hierarchies for discount so that customers receive maximum price benefits. To ensure this, ensure you synchronize discounts carefully.
2. Renewal management
Another factor that can get complicated in bundle and subscription integration is renewal management. When customers renew subscriptions, loyalty tiers, points balance, and bundle availability should also change or update based on individual cases. Automated systems should account for these changes.
3. Update discounts, points
Also, when customers’ tiers change based on their purchase, their subscription accounts should get updated with relevant pricing, bundle availability, and loyalty points applicable. It is essential to synchronize these processes when there’s a subscription, bundles, and loyalty program integration.
4. Messaging and notifications
When subscriptions, bundles, and loyalty programs are integrated, notifications and messages have to be sent across platforms. For instance, a subscription renewal may impact loyalty points balance and bundle availability. Hence, the messages should go across all platforms involved. This ensures customers are informed about every detail.
Avoid overlaps between bundles, subscriptions, and loyalty program
Since many features of the three strategies may be similar, it is important to avoid overlaps. Follow these best practices and tips.
1. Incentive stacking
How many perks customers can receive when the three elements are integrated is based on individual businesses. For instance, some Shopify stores might want to offer more benefits than other stores. Incentive rules should be clearly set via the integrated apps and also communicated to customers.
2. Clear communication
Your subscription, bundles, and loyalty programs may have different policies. And hence, it is important to inform customers how the three function when integrated. For example, there could be limitations or exclusions.
3. Test how integrated elements function
The number and kind of transactions that occur on your Shopify store can vary widely. Hence, it is important to test incentive combinations when you set up loyalty, bundle and subscription integrations. Test for different scenarios that involve various combinations.
4. Tracking and monitoring
Consistently track and monitor to understand how customers use incentives, which incentive combinations are customers using, and how it impacts your profit. This data can help you optimize incentives structure. Use Shopify loyalty app to automate tracking.
Wrapping up – bundle and subscription integration with loyalty program
When implemented strategically, subscription, loyalty, and bundle integrations can help grow your Shopify business via innovative ways. And that’s where the key is – to think of the three as interconnected and not as separate.
Think of creative ways to combine the three, extract targeted data, and consistently optimize this new strategy to grow and scale your business.
You can apply this integration strategy easily with the help of Appstle. Appstle offers all three tools and advanced integration capabilities. Moreover, Appstle’s customization features can help you create a truly unique integrated experience like no other.
Explore Appstle for integrating subscriptions, bundles, and loyalty programs.
