If you want your loyal customers to remain loyal to your brand and eventually become advocates of your brand. Then you need to make sure you have a Subscribe & Save Subscription Model also known as the Autoship/Replenishment Subscription Model.
This subscription model is a convenient way to simplify your customer’s life.
As this allows your customers to subscribe to their favorite products, and get them delivered automatically to their doorstep at regular intervals!
Whether it’s household essentials, beauty products, or pet supplies, this subscription model offers convenience with savings, which is a perfect combination to retain your customers and build long-term relationships.
Here your customers not only save time but also enjoy cost benefits and uninterrupted supply.
For you, it means happier customers, more loyalty and steadier revenue.
Subscriptions on the products they already reorder give you predictable, recurring revenue.
Sales arrive on a schedule, and customers stay because the deliveries take care of themselves.
It also makes inventory planning easier and cuts what you spend to get each order.
This post covers
- Benefits of Subscribe & Save Subscription Program.
- How to make the incentive structure.
- How to promote the enrolment plan of the subscribe & save subscription program.
- How to retain the members of the subscribe & save subscription plan.
- How to winback your old subscribers.
Benefits of Subscribe & Save Subscription Program
- High Conversion Rate- The Subscribe & Save Subscription Program often boasts a high conversion rate as it presents customers with an attractive value proposition. The combination of convenience, cost savings, and a streamlined ordering process encourages potential customers to convert into subscribers.
The appeal of automatic, hassle-free deliveries at discounted rates can significantly boost the likelihood of customers opting for subscriptions over one-time purchases. - High Retention Rate- Subscribers tend to exhibit a high retention rate compared to one-time buyers. The recurring nature of the subscription model creates a steady and ongoing relationship between the brand and the customer.
The continuous value derived from the program, such as regular discounts and convenient deliveries, enhances customer satisfaction and loyalty. As a result, the likelihood of subscribers continuing their relationship with the brand over an extended period is substantially higher. - Less Operational Complexities- The Subscribe & Save model streamlines operational processes for brands. With subscribers receiving regular, predictable orders, inventory management becomes more efficient.
Brands can plan production, stocking, and shipping with greater accuracy, reducing the complexities associated with fluctuating demand. That saves time and lowers the risk of logistics problems. - Enhances Customer Loyalty– Subscribers tend to develop a sense of loyalty to brands that offer Subscribe & Save programs. Reliable delivery they never have to think about makes repeat business likely. Brands can capitalize on this loyalty by implementing personalized promotions and exclusive perks for long-term subscribers.
Incentive Structure
The incentive structure decides who signs up and who stays.
1) Discount– Offering a discount on products for subscribers is a powerful incentive. People are more likely to commit to a subscription if they feel they are getting a good deal.
Provide a percentage discount on each subscribed item, or offer tiered discounts based on the number of items in the subscription. For example, a 10% discount for one item, 15% for two items, and 20% for three or more items.
2) Free Shipping– Free shipping is a widely appreciated perk that can significantly enhance the attractiveness of a subscription program. It reduces the overall cost for customers and eliminates one of the common barriers to online shopping.
Make free shipping standard on every subscription order, and show the subscriber what it saves them.
3) Loyalty Points– Implementing a loyalty points system adds a gamified element to the subscription program, motivating customers to stick with it for the long haul.
Assign points for every subscription renewal or purchase, and allow customers to redeem these points for discounts, exclusive products, or other rewards. This not only encourages ongoing participation but also reinforces the idea that loyalty to the brand is rewarded.
4) Multi-Subscription Discount– Encourage customers to subscribe to multiple products by offering a multi-subscription discount. For instance, if a customer subscribes to both a shampoo and conditioner, provide an additional discount on top of the individual product discounts.
This approach not only increases the average transaction value but also strengthens the customer’s commitment to the subscription program.
Say plainly what the subscriber gets, in your emails and on your site banners.
Additionally, regularly engage with subscribers by updating them on new products, offering exclusive deals, and soliciting feedback to further enhance their experience.
Enrolment Plan
Promote it on your site, in automated email, and with offers on longer plans.
On Website:
- Product Page- Integrate a prominent call-to-action (CTA) or banner on individual product pages encouraging customers to subscribe and save. Highlight the benefits of the subscription program, such as discounts and convenience, to entice visitors to consider enrolling while they are actively browsing products.
- Cart Page– Place a dedicated section on the shopping cart page to showcase the benefits of subscribing and saving. Emphasize potential cost savings and stress the convenience of receiving products regularly without the hassle of reordering. Consider offering a one-time discount or an additional incentive to encourage immediate enrollment.
- Checkout Page- During the checkout process, remind customers about the Subscribe & Save option. Display a checkbox or a clear callout with a brief description of the benefits. Reinforce the value proposition to convince customers that enrolling in the subscription program is a wise decision.
- Success Page– After a successful purchase, redirect customers to a success page that highlights the option to enroll in the Subscribe & Save program for future orders. Express gratitude for their purchase and outline the advantages of subscribing for ongoing benefits.
Email Automation:
- Replenishment Automation– Implement automated email campaigns to remind customers to replenish their products based on their previous purchase frequency. Include a prominent CTA encouraging them to convert their purchase into a subscription, emphasizing the ease and cost-effectiveness.
- Cost-saving Cross-sell– Craft targeted cross-selling emails that focus on the cost-saving benefits of subscribing to additional products. Showcase the value of bundling or expanding their subscription to maximize discounts and streamline their shopping experience.
- Subscription Abandonment Cart– Implement cart abandonment emails specifically tailored for customers who added items to their cart but did not complete the subscription process. Remind them of the advantages of subscribing, and possibly offer an exclusive discount or incentive to finalize their subscription.
Offers Around Subscription:
- 3-6 Months Subscription Discount Campaigns– Run special campaigns promoting extended subscription plans, such as 3-6 months, with additional discounts. Highlight the long-term cost savings and convenience of committing to a more extended subscription period.
Retention Strategies
Here is how to keep them:
Communication Automation:
- Subscription Onboarding– Walk new subscribers through how the program works. Automate a series of welcome emails explaining how the subscription works, highlighting discounts, and addressing common questions. This helps set clear expectations and enhances the overall user experience.
- Before the Upcoming Subscription Alert- Implement automated alerts or reminders sent to subscribers before their upcoming subscription renewal. Members see the charge coming and can change the order before it ships.
Retention Features:
- Skip/Pause Order– Provide subscribers with the flexibility to skip or pause their upcoming orders. A pause they can take themselves carries the subscription through a month they cannot use it.
- Swap Order– Enable subscribers to easily swap products within their subscriptions. Needs and seasons change, and a swap keeps the order matched to what they want now.
- Delay Order– Allow subscribers to delay the delivery of their upcoming order. Whether they are going on vacation or simply need more time before the next shipment, this feature adds convenience and helps prevent cancellations by accommodating the varying needs of subscribers.
- Dunning Solution– Implement a dunning solution to manage failed payment attempts. Send automated reminders to subscribers with unsuccessful payments, offering an opportunity to update payment information and avoid service disruption. That cuts involuntary churn.
Retention Promotion:
- Retention Surprise Rewards– Surprise and delight your subscribers with unexpected rewards or gifts based on their loyalty and tenure in the program. This could include exclusive discounts, free products, or special offers. These surprises create a positive association with the subscription, increasing the likelihood of continued loyalty.
- Loyalty Points– Incorporate a loyalty points system that rewards subscribers for each purchase or successful renewal. Allow them to accumulate points that can be redeemed for discounts, exclusive products, or other perks. This not only incentivizes ongoing engagement but also strengthens the emotional connection between the subscriber and the brand.
- Month-on-Month Variable Discounts– Implement variable discounts that increase the longer a subscriber remains enrolled. For example, offer a higher discount percentage for subscribers who have stayed for six months compared to those who recently joined. This progressive discount structure encourages long-term commitment and discourages cancellations.
Winback Plan
A winback plan has to pull former subscribers back. Two automated emails do the work:
- Feedback- Initiate an email campaign focused on gathering feedback from lapsed subscribers. Inquire about the reasons for their cancellation, addressing any concerns they may have had. This not only provides valuable insights into potential areas for improvement but also demonstrates a commitment to understanding and meeting customer needs.
- Winback Discount– Entice former subscribers to rejoin by offering exclusive winback discounts. Craft personalized emails highlighting the benefits of the Subscribe & Save program and sweeten the deal with a special discount or promotional offer. This not only serves as a powerful incentive but also communicates to lapsed subscribers that their loyalty is valued, encouraging them to give the subscription another try.
FAQ
What is a subscribe and save program?
Customers subscribe to the products they reorder and get them delivered on a set schedule, usually at a discount. It is also called autoship or a replenishment subscription.
How big should the subscribe and save discount be?
Big enough to feel worth it. On a low-ticket item, 10% is $5, and nobody subscribes for $5. Pick one "save X%" and use it everywhere, and always show the price per month. The full order of decisions is in the subscription offer framework.
How often should subscribe and save orders ship?
Match the frequency to how fast the product runs out. 30 servings at one a day gives a 30-day window. Offer two terms, three at most, and never go past twice the consumption window.
Are gifts better than bigger discounts?
For keeping subscribers, yes. Put gifts where your cohort drops, usually order 2 or 3. It's easy to walk away from $5 off, and much harder to walk away from three free gifts. More in why gifts beat discounts.
What share of customers should choose subscribe and save?
Most health brands count a 40% to 50% take rate as a win. IM8 gets 79% of new customers to subscribe on their first order.
How do I stop subscribe and save customers from cancelling at renewal?
Send a reminder before each charge that leads with value and makes skip and reschedule the main buttons. Boka's reminder, with skip and swap options and four add-ons, cut churn 18% in 90 days.
Which app runs subscribe and save on Shopify?
Under 100 subscribers, the free Shopify Subscriptions app will do, but it has no cancel flow. Past that, Recharge, Skio, Loop and Stay AI can all run a good program.
One email a week on subscription retention: the numbers, the strategy, and what to fix first.
Rahi Jain
Rahi Jain is a subscription LTV specialist who helps $1M to $10M DTC brands reduce subscription churn and maximize LTV on Recharge, Skio, Stay AI and Loop.
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