Subscription models are key for eCommerce success.
However, while subscribe-and-save models worked well in the past, today, brands need to provide more than transactional experiences.
That’s where relationship subscriptions come into focus.
In this blog, you will learn how to identify signs that your subscription brand is stagnating and needs a transition to relationship subscriptions.
Curious?
Let’s get started!
TL; DR
- Traditional subscribe-and-save models are transactional. Relationship subscriptions build stronger emotional connections through personalization, engagement, and increased value.
- High skip/pause rates, low engagement, short lifespan, discount dependency, no tiered options, lack of personalization, and flattened CLTV are signs your subscription models need a refresh with relationship subscriptions.
- Create flexible, consumption-based subscription structures to increase retention rates.
- Increase engagement through content, community, and interactive experiences.
- Incorporate AI-driven personalization and ML-based smart recommendations.
- Focus on providing value and exclusivity over discounts.
9 signs you need relationship subscription models in your Shopify store
Here are 9 signs that might point to stagnation in your subscription model. Also learn ways to overcome these problems by integrating relationship subscription strategies.
1. Your subscribers are pausing or skipping more frequently
When you notice subscribers skipping or pausing deliveries, it’s time to identify the reasons they’re doing so. Skipping or pausing deliveries could indicate the following:
- Your subscription delivery structure is too rigid and so subscribers are skipping
- The rigid or fixed delivery schedule is not aligning with customers’ requirements
- For instance, different subscribers might use the same face lotion in different ways and hence, may not finish the bottle within a month. Some may take two months to finish one bottle
How relationship subscriptions solve this problem:
Relationship subscriptions offer flexibility to subscribers by allowing product swapping, changing delivery dates, etc. Customers can replenish products as and when their products get over depending on their usage.
Subscription brands can also use predictive analytics to proactively send replenishment reminders before subscribers initiate pause or skip. This way, subscribers feel that your brand really understands them, their needs, and is willing to adjust with them.
2. Subscribers don’t finish products monthly
One of the most common reasons for churn is that customers have products left over from the last delivery and that they do not finish products every month. This makes fixed-interval deliveries less effective.
The traditional subscriber-and-save model functions well when products get used up within the fixed interval. For example, a bottle of vitamin supplements to be taken everyday gets over every month. However, the nature of products differs and certain products, such as cosmetics, may not get used up within the fixed interval.
Customers might initiate cancellation because of not being able to use so many products. This is where relationship subscription helps. By enabling consumption-based delivery scheduling, you can track subscribers usage patterns. Based on the consumption pattern you can send replenishment reminders.
Using a smart subscription management tool, such as Appstle Subscriptions App can help with automation, predictive analysis, and other built-in features to enhance relationship subscriptions.
3. You’re seeing low engagement
When subscribers interact with you only when they’re placing orders, it’s a sign of low engagement and that your relationship is transactional. It is not what a true subscription relationship looks like.
Typical subscriber-and-save subscriptions feel like automated repeat purchases. It doesn’t give subscribers opportunities to think about the brand beyond order placement. There is no emotional connection.
Relationship subscriptions add layers of engagement. Here’s how:
- Provide exclusive content to subscribers
- Add value in multiple ways beyond product deliveries
- Multiple opportunities for interaction throughout the subscription lifecycle
- Share educational content about products
- Exclusive subscriber communities
- Create interactive features within the subscription app
- Personalized check-ins with subscribers
Subscribers who engage with your brand through content, community forums, participation in events, etc., tend to stay longer. This results in reduced churn rates and higher lifetime value.
4. Your average subscriber stays less than 4-6 months
When subscribers cancel and leave your brand within a few months, it’s a sign they’re not building strong emotional connections with your brand. It means your subscription is just a convenient purchase for them. They do not see any reason or value beyond that.
Relationship subscriptions build stronger connections. Here’s how:
- Relationship subscriptions build long-term habits
- Integrate brand and subscriber relationship for long-term
- Brands and products become part of subscribers’ everyday identity. For example, a coffee subscription becomes a part of customers’ daily routine
Subscription brands that add value to subscriber experience see longer retention periods. When subscribers see value and more engagement, they stay longer. The relationship between your brand and subscriber changes from transactional to meaningful.
5. You rely on discounts for subscription sign-ups
Many subscription brands rely too heavily on discounts in order to increase sign-ups. But discount-driven subscription acquisition is problematic. To begin with, it eats into your profit margins. Another drawback is that it tends to attract only price-sensitive customers with low-spend capacity. These subscribers tend to churn even with a slight price hike.
You can change this with relationship subscriptions by offering personalized experience, value-add, exclusivity, better and meaningful perks, etc. For instance, instead of promoting ‘Save 20% upon subscribing’, you can promote ‘Join our community and enjoy exclusive experiences.’
Most successful subscription brands include relationship subscription in their business model. Their subscribers engage more, stick to the brand for longer, and lead to increased lifetime value.
6. You are not providing a tiered subscription experience
The basic subscribe-and-save subscription model fails to engage all customers. For instance, some customers expect and are happy with basic replenishments, but others want exclusive experiences and perks. Tier-based subscriptions help create relationship subscriptions.
Here’s how it works:
- Tiered subscriptions function on the basis of customer segments
- Each segment or tier is offered personalized experiences based on their desired level of engagement
- Tiered structures offer opportunities to progress to higher tiers
- Offer opportunities to offer unique rewards to different segments
- Tiered levels create aspirations for subscribers, increasing engagement
Tiered structures make relationship subscriptions stronger by creating more opportunities to engage.
7. Unable to adapt to customers’ need for personalization
Another reason your Shopify store needs relationship subscription is because you’re not providing personalized experiences. Today’s customers expect personalization throughout their journey. But most subscribe-and-save subscription models treat all subscribers the same.
For instance, a new parent’s needs are different from those who have older children. And hence, if you send new parents discount offers on school bags, it is pointless for them. Filling the personalization gap can help you build relationship subscriptions.
Here’s how personalization enhances relationship subscriptions:
- Offer benefits, perks, and rewards based on subscribers goals, preferences, behavior and lifecycle stages
- Offer perks and benefits based on usage patterns
- Artificial intelligence (AI) and machine learning (ML) enhance personalization in subscriptions
8. Not combining subscriptions with loyalty or memberships
Subscription programs have the potential to be combined with other features of your business, such as loyalty programs or memberships. However, traditional subscription models exist in isolation. But when subscriptions are combined with loyalty or membership programs, or both, it can enhance subscription experience.
Here’s how combining subscription programs with other elements can lead to relationship subscriptions.
- It creates opportunities to enhance value to customers from subscriptions
- Subscribers get more out of subscriptions – benefits of loyalty, membership and subscription programs
- Combine the convenience of recurring deliveries, loyalty points, rewards, and membership benefits like discounts, exclusive access, and personalized experiences
Subscription plans integrated with loyalty and membership programs create more stickiness and enhanced value than only subscriptions.
9. Stagnated customer lifetime value (CLTV)
If you’re noticing your CLTV has flattened, it might be because your subscriber-and-save structure isn’t offering what customers are looking for. Subscription models that offer discounts tend to perform well only during the initial phase. It fails to consistently bring customers back.
Taking a relationship subscription approach can help overcome stagnation and scale your subscription revenue. Here’s how you can create consistency for increased CLTV in subscriptions:
- Build emotional connections through subscriptions and increase retention
- Create adaptive and personalized experiences that engage customers
- Create tiered offerings and personalized upsells that drive more sales
- Integrate personalized recommendations and product discovery
- Build emotional loyalty that leads to word-of-mouth growth
How to make the transition to relationship subscription
If you’re noticing these or other signs of your subscription business slowing down or plateauing, it’s time to revive it with relationship subscriptions. However, the transition does not have to be sudden. You can do it in phases by incorporating different strategies.
First, identify the signs that might point to stagnation. Next, integrate a subscription management tool such as Appstle Subscriptions App into your Shopify store.
Appstle has built-in features that help with creating different types of subscription plans, tiered subscription models, discounting, automated features, higher engagement, etc.
If you’re looking to get started with relationship subscription, install Appstle Subscription App in your Shopify store today!
