Traditional loyalty programs aim to re-engage customers and encourage them to make another purchase. Subscription brands, on the other hand, already have that next-order commitment built in, so the focus of their loyalty programs is different: They aim to dissuade customers from opting out by giving them compelling reasons to stay subscribed.

Many loyalty programs, though, are outmoded and coming up short. Points systems are a long-time favorite of brands; they’re also confusing and abstract for customers, presenting as many obstacles as incentives.

The answer? Credits—instant, cash-back-like rewards to spend on future orders. Awarded as a simple percentage of each purchase, they’re easy to grasp and even easier to spend.

Let’s dive into how credits deliver better loyalty experiences for brands and consumers.

The problem with points

Loyalty points are among the most common rewards, offered on everything from morning coffee to airline tickets. But they’re not the right fit everywhere.

Why? Points are frustratingly opaque. Their value is hidden and abstract, and it can even vary when redeemed for different rewards. That can help brands control incentives more tightly, but it makes it difficult for customers to understand what they’ve earned and can erode their trust in the program.

Worse, points can feel slow. 70% of customers abandon rewards because it takes too long to earn enough points to redeem, which is exactly the opposite of the intended effect.

Points programs are also typically separated from the buying process. Customers are forced to log into a different page, redeem their points for a discount code, copy that code, and then return to the brand’s main site to shop. This disjointed experience makes the process of receiving a reward feel time-consuming and not worth the effort.

Different solutions for different industries

These shortcomings aren’t an issue for every brand. Airlines and hotels, for example, are built on infrequent, high-dollar purchases. Their customers may be comfortable accumulating points over longer periods, and the exchange rate is more consistent when points can only be used toward one type of purchase anyway.

But subscription retail is built on relatively frequent, inexpensive purchases, and many brands offer a wide array of products. For customers to trust and use a rewards program, it needs to be intuitive and immediately useful—like in time for the very next order.

Why credits keep customers coming back

In the subscription world, loyalty programs make it second nature for customers to use your products. Credits offer clear, trackable rewards that can save up over time (or be cashed in instantly), making each new order an easy choice and one that builds long-term loyalty.

They’re tangible, intuitive & motivational

Points are abstract—a number with a hidden value. Credits are crystal-clear and ready to use right away, and their cash back-like nature makes them feel more rewarding and less arbitrary.

Customers can also save them up for bigger purchases, with auto-renewed orders providing a steady stream of credits. That keeps them engaged without hurting your margins or inventory—and the accumulated savings gives them another valuable reason to stay subscribed.

They make subscriptions appealing

Though any type of customer or order may earn credits, brands also have the option of making credits redeemable only by subscribers. That provides a strong incentive for one-time buyers to upgrade to subscriptions and unlock the value they’ve earned.

They deter cancellation

A key moment for brands is when customers are most likely to churn, often after their second or third order. Offering credits on every purchase helps customers build up meaningful credit balances by these milestones, giving them a clear reason to stick around.

For example, offering 3% cash back on each order means that, by their second or third order, customers will have accumulated $5.10 to $7.65 in credits, assuming an average order size of $85. Reaching this $5-$10 credit sweet spot can make customers think twice about canceling, as they won’t want to lose the valuable rewards they’ve earned.

Make the switch to credits

Recharge’s Rewards uses a modern, customer-centric approach to loyalty programs that outperforms traditional points systems. Tangible, easy-to-understand rewards like credits create an immediate sense of value for the customer.

This approach is particularly effective in a subscription model, where maintaining convenience and preventing churn is crucial. As customers accumulate credits, they become more likely to keep ordering, knowing they’ll miss out on real value and benefits if they cancel.

Credit-based loyalty programs benefit both brands and customers by building long-term relationships built on clear, meaningful rewards.

The post Points or pointless? Why credits are the way to go for DTC loyalty programs appeared first on Recharge.

It can be exhausting, so we tapped a few influential industry experts (not to brag, but they’re Ari Murray, Nik Sharma, Andriy Rudnyk, Bryan Starck, John Roman and Grace Clarke) to share a creative strategy they love that you have full permission to steal.

Seriously, six tactics that are yours to implement, adapt, and roll out to boost your subscription sales this holiday season. 

Let’s get into it.

Lock in longevity

Ari Murray, Chief Growth Officer at Sharma Brands & creator of Go-to-Millions at Workweek

On the product page, in the subscription buy box, reward longevity by offering 15% off the first order of the subscription, and 20% off every subscription order thereafter. This, of course, increases subscription retention and LTV, but it also increases conversion. I’ve tested it 10 times!

My favorite way to make this ‘holiday’ and really kick it up a notch: Make the first subscription order price the offer you’re running for BFCM (ex: 30%), and increase to 35% off every order thereafter. Subscribers will be afraid to cancel, because they know the renewal price is better than your best offer. Making this only available to BFCM subscribers makes it feel urgent and like a steal. Try it please, and remember me when you buy a Malibu beach house. I’d love an invite.

Bundle value

Nik Sharma, CEO of Sharma Brands

Merchandise a bundle specifically to focus on subscriber acquisition during the holidays. If you have a product that has a very clear consumption cycle (e.g. a supplement or cream with a daily use case), create a new subscriber offer to entice customers to join. Include a gift with purchase (GWP) and/or a discount to create a perceived value that is 1.5x to 2x greater than the price someone is paying. Everyday Dose does this perfectly with their starter kit—you get a $149 value for $25 when you subscribe.

Of course, your product has to deliver on its benefits to the customer. But as long as it does, this is a phenomenal way to acquire people who are on the fence.

Celebrate your subscribers

Andriy Rudnyk, founder of Good Subscription Agency

A question I often hear: ‘What do I do for my existing subscribers during BFCM? I don’t want them to feel left out.’

Here’s the answer: automate a small holiday gift in their upcoming order. The gift’s value doesn’t matter as much as the thoughtfulness—what counts is a standout email that makes the subscriber feel seen, and humanizes your team.

A simple message like ‘A small holiday gift from us on your next order’ will improve the quality of the relationship, driving renewals through BFCM and retention well after.

Now if I could get my cell phone provider to think this way…

Reward at renewals

Bryan Starck, founder of 100 Celsius 

Want to reduce cancellations around billing reminders? Try this: Alert subscribers about upcoming free gifts or credits in their renewal notifications.

Most brands see a cancellation spike when billing reminders hit inboxes. But by highlighting a surprise gift (via Recharge’s Rewards) in these emails, you transform “You’re about to be charged” into “Your free gift is coming!”

This simple shift taps into loss aversion, and can significantly reduce churn around renewals.

Upsell with mystery

John Roman, CEO of Battlebox

At BattlBox, we’ve incorporated a “mystery box” upsell at checkout for customers with a subscription in their cart. About 32% of these customers opt for the one-time mystery box, generating an estimated $80,000 in additional monthly revenue and giving a strong boost to our average order value (AOV). Around the holidays, consider offering a limited-edition mystery box with seasonal or exclusive items to elevate the first purchase experience and increase overall order value.

Secret subscriber society

Grace Clark, Fractional CMO

First, my (and now your) rules for any new idea:

1. Simple enough to do tomorrow, using just the product and tech you have.
2. CFO-approved! We need to increase holiday subscriptions and bottom line LTV. Your CFO must look at this and think, “Clever. I like it.”
3. Out: funnels. In: flywheels. Add digital subscriber perks each month to keep subscribers engaged.

Send what looks like a site credit email to your top customers. “Don’t forget your site credit. Credit #: 0395u0983092 Pin: 0293. CTA Button: check balance.”

The button should take users to a hidden, branded landing page where they’ll see the best ongoing discounts and bundles. If your usual discount is 20%, tell them they get 25% in perpetuity and highlight bundles of high-margin items or excess inventory. Brand it as a secret, VIP-only offer, and then pitch it to affiliates too with a higher-than-usual commission—perfect for impressing your CFO!”

The post Steal this strategy: Boosting subscription sales this season appeared first on Recharge.

Recharge Rewards integrates directly with customer portal announcements, surfacing valuable incentives at key moments to remind customers why they subscribed in the first place. By keeping rewards front and center, you give customers compelling reasons to stay engaged—making every interaction in the portal an opportunity to build loyalty, not risk cancellation.

1. Celebrate milestones with punch cards

Remember that punch card tucked in your wallet from your favorite coffee shop, where every stamp brought you closer to a free latte? That same excitement can be applied to fuel your subscription program.

Motivate customers to stay consistent with their orders by rewarding them along the way and making every purchase feel like progress toward something bigger.

Put it into practice

Display a punch card in the customer portal that highlights rewards at critical order milestones.

Every order: 3% cashback credits
Order 3: Unlock a free gift to show appreciation for their continued loyalty.
Order 6: Earn a lifetime 10% discount as a reward for their ongoing commitment

2. Showcase VIP program progress

Make your customers feel valued by celebrating their progress through VIP or subscription tiers directly in the customer portal.

Reaching a new tier should feel like a win—a moment that reinforces their loyalty and motivates them to keep engaging. Keep them excited about their status by highlighting their current tier, the benefits they’ve unlocked, and how close they are to reaching the next level.

Put it into practice

Use announcements to inform customers what subscription tier they’re in, the benefits it provides, and how close they are to the next one.

3. Promote Black Friday/Cyber Monday and seasonal offers

Boost average order value (AOV) and drive sales by announcing

• BFCM flash sales that provide limited-time discounts on best sellers
• Exclusive bundles of top products
• Bonus periods with increased credit rewards

Well-timed announcements ensure customers see the best deals right when they log in, creating excitement, driving engagement, and turning seasonal moments into opportunities for repeat buying.

Put it into practice

Increase AOV by featuring exclusive BFCM bundles with your best-selling products. Then reward customers with tiered discounts that grow with their spending.

For instance, offer 10% off for orders over $50, 20% off for orders over $100, and 30% off for those spending $150 or more.

4. Keep subscribers excited about your brand by reminding them why they subscribed

Remind customers of product benefits at key moments in their subscription journey. Use portal announcements to encourage consistent product use, reinforcing the value of staying subscribed.

Put it into practice

For new customers still within their first few orders, take some time to highlight product benefits. If your products take some time to produce optimal results, like 90 days or 5 applications, this is a great time to reiterate that.

5. Give subscribers early access to new products

Make your subscribers feel special by offering exclusive early access to your latest drops directly through the customer portal. Create excitement, build anticipation, and reward your best customers for their loyalty—keeping them engaged and eager for what’s next.

Put it into practice

Showcase a new product to subscribers in your highest subscription tier and offer them a 20% discount to try it out.

Ready to build a rewards program that works?

Recharge Rewards offers everything you need to design a personalized and flexible rewards strategy, ranging from credits and free gifts to exclusive discounts.

With native A/B testing, pre-built templates, and seamless integration with retention touchpoints like the customer portal and cancellation portal, building a rewards program has never been easier.

The post Top 5 ways to use customer portal announcements and punch cards appeared first on Recharge.

This season, it’s crucial to focus on growing your subscriber base, particularly in a year where we predict that:

1. Customers will be choosier than ever. They’re not only hunting for deals, but seeking brands that offer genuine value to their routines and anchor their messaging and promotions in a clear brand promise. 
2. Online spending is expected to hit record levels. And customers will expect excellence in their online experiences, even in-store shoppers who often rely on brand websites to check inventory and product reviews before making their trip. 
3. Acquisition costs are at an all-time high. With customer acquisition expenses soaring, maximizing retention is essential for sustaining growth.

To help brands make the most of this holiday season and beyond, here’s a 6-step plan designed to turn holiday shoppers into long-term subscribers based on the success of hundreds of subscription brands.

1. Define success

Before diving into the holiday season, clearly define what success looks like for your subscription business. Is it growing your active subscriber base, maintaining a healthy profit margin, or keeping churn rates low? Setting explicit goals will help determine a targeted strategy and actionable next steps.

One metric we encourage brands to center is subscription share of wallet, or the percentage of sales that comes from subscriptions. With subscribers generating about three times the revenue of non-subscribers, it pays to increase subscription share of wallet.

2. Make subscriptions the star of your website

Your website is a powerful tool for promoting subscriptions. During the busy holiday season, customers’ attention spans are limited, so it’s vital to highlight the benefits of becoming a subscriber at every touchpoint, from homepage banners to checkout pages.

Make signing up easy and compelling—clear, concise messaging about the value and convenience of a subscription can turn casual holiday shoppers into loyal subscribers.

3. Do the math

In today’s competitive landscape, retaining customers is more crucial than ever. Acquiring customers before you develop a strong retention strategy is like pouring water into a leaky bucket: Until you invest in retention efforts that patch those cracks, all your new customers will leak right out again.

By addressing churn and improving your customer retention, your acquisition efforts are amplified, giving your brand a solid foundation to build upon.

4. Surprise & delight

One of the most effective ways to retain customers is to consistently surprise and delight them. Go beyond typical holiday promotions—aim to make your subscribers feel valued and appreciated throughout the year.

This could involve loyalty rewards, personalized thank-you notes, unexpected free gifts, or special offers that cater to their interests. This emotional connection can significantly enhance customer loyalty and lifetime value.

5. Listen to feedback

Your customers are a goldmine of insights. From support chats and cancellation reasons to social media interactions and focus groups, gather and analyze feedback from various sources.

Avoid relying on internal assumptions—customers will give you clear signals about what they love or dislike about your products and services.

By actively listening and responding to this feedback, you can make informed decisions and adjustments that enhance the overall subscriber experience.

6. Always be testing

The key to continuous improvement is testing. Develop a robust testing roadmap to explore and optimize elements of your subscription journey. Experiment with website designs, promotional strategies, cancellation processes, and retention initiatives.

Every test should provide valuable learnings, whether it’s about refining your subscription model or optimizing customer touchpoints.

An obsession with testing and iterative improvement will help you stay ahead of the competition and consistently enhance your subscriber experience.

Drive loyalty and retention for your subscription brand this holiday season

The efforts you make to build relationships with your customers and nurture your subscriber base will pay dividends—driving loyalty, connection and goodwill is essential in today’s competitive landscape.

The holidays present a golden opportunity to both attract and retain new customers. Embrace these strategies, and you’ll be well-positioned to capitalize on this season’s opportunities and thrive throughout the year.
For more insights and strategies on enhancing retention and ensuring holiday success, sign up for our Building For Tomorrow webinar replay.

The post Turning holiday shoppers into lifelong subscribers: A DTC brand’s 6-step plan for Black Friday/Cyber Monday success appeared first on Recharge.