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The subscription ecommerce market has grown by more than 100% each year for the past five years. As barriers to entry get lower, customers have more choice and higher expectations – today nearly 40% of customers cancel their online subscription because other top-performing brands attract them.
Using LoyaltyLion and Recharge together, you can create a subscriber tier and offer exclusive benefits to ensure your customers don’t switch and join the 300+ merchants already actively growing subscription revenue.
Thanks to repeated payments, subscribed customers have a higher customer lifetime value and can bring additional revenue to your business. By integrating LoyaltyLion with Recharge, you can create a subscriber tier that offers exclusive benefits and rewards. For instance, offer them access to secret sales or events, the ability to jump the queue, and the first look at products.
To encourage customers to become subscribers, you can also offer recurring rewards, for example applying a discount to the next three (or any number) of fulfilled orders or incentivize subscriptions with bonus points for becoming a subscriber.
More than one-third of customers cancel their subscription in less than three months. Reducing churn and keeping subscriptions active is crucial to growth. The good news is that if your subscription service offers rewards and benefits, 45% of customers are likely to keep their subscription for at least for a year.
To retain your subscribers for longer, surprise and delight them with exclusive subscriber rewards. For instance, offer them recurring rewards such as a free product in exchange of points. Free product rewards can create the same feeling as receiving a gift and encourages customers to keep their subscription active for longer. Use free product rewards and surprise gifts to show it’s worth staying with your brand.
Subscribers are also an invaluable and cost-effective source of new customers. Use your loyalty program to encourage your subscribers to refer your store to a friend or family member. Referred customers have a 16% higher lifetime value than non-referred customers, so incentivize subscribers with points for every successful referral.
After exploring the LoyaltyLion and Recharge partnership, Annmarie knew they needed this market leading integration. Focusing on building community, Annmarie were able to drive high levels of engagement, including over 1,000 reviews.
Their community was so successful that 40% of customers redeemed rewards within three months. Driving this emotional connection not only sped up purchase frequency but also increased member spend to 140% higher than non-members.