Now more than ever, there has never been a better time to invest in a subscription-based model for your Shopify Store.
Subscriptions are the fastest growing area in commerce that offer exciting opportunities for your brand to build a community of customers who share your values and engage with your brand.
Why is a subscription model important?
Subscription-based business models are rapidly becoming one of the most sure-fire ways to gain a reliable stream of revenue, increase the average LTV of each customer, increase customer retention and reduce customer churn.
The subscription-based e-commerce market has grown exponentially with Global subscriptions projected to grow 70% year on year and hit 478 BILLION by 2025.
If those numbers don’t convince you, read Why you should add Subscriptions to your Shopify Store.
What are the different subscription models?
There are three types of subscription models to choose from; curation, replenishment and access. These models come with their own set of perks and drawbacks, and you must do your research to determine which one is the best fit for your business.
Curation 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 packaged together and shipped at a regular cadence.
Replenishment is The second-most popular subscription model (32% of merchants choose this subscription type). Merchants can easily sell their ‘box of the month’ and set delivery times and cut-off dates simply through order management. This model is perfect for brands that have many products of a similar type.
Replenishment Subscriptions
Replenishment offers the same product consistently. It’s also referred to as “subscribe-and-save” and works best for consumables (ones that most people use daily).
This model makes it easy to change one-time products into a subscription option. It is ideal for products of the same variant that are required frequently by the consumer.
Access Subscriptions
Access is the third and fastest-growing subscription model (13% of merchants choose this subscription type). Access is used to offer a membership or gate availability. This model is multiplying because of the wide variety of benefits merchants can offer their subscribers.
This model is ideal for brands selling products with a lower repeat purchase frequency and higher AOV. This choice offers a discount to a customer who has a subscription set up to ensure they stay loyal. It works especially well alongside a loyalty program.
What are the best subscription models?
Curation subscription models are the most popular subscription models, with 55% of merchants choosing this subscription type. This suggests that there is a strong desire for personalised services and experiences.
While this may be the most overarching popular subscription model, this might not be the best for you and your Shopify store. Thankfully ReCharge makes this process easy with their highly customisable API and seamless integrations.
How can I improve my subscription?
Implementing a successful subscription business model is a simple matter of finding the perfect journey and experience for your customers.
Start by:
- Determining your goals.
- Focus on the customer experience
- Ensure a seamless billing service
- Plan for Growth
How can Blend help with subscriptions?
Having been a long term partner of Recharge, our team has a wealth of practical knowledge of how to help your brand grow it's subscription-based business. Contact us today to see how we can help you.
Published: September 12, 2021
Last updated: October 23, 2024
