Recharge https://getrecharge.com/ Recharge is the leading subscription platform powering smarter subscription experiences. Wed, 08 Jan 2025 20:07:09 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://getrecharge.com/wp-content/uploads/2021/07/favicon-150x150.png Recharge https://getrecharge.com/ 32 32 5 ways to drive sales & subscriptions with post-purchase offers https://getrecharge.com/blog/5-ways-to-drive-sales-subscriptions-with-post-purchase-offers/ Thu, 19 Dec 2024 20:50:20 +0000 https://getrecharge.com/?p=24931 Smart brands are always looking for new ways to move the needle on revenue growth, including by highlighting best-selling products at different points during the shopping journey. Here’s something that might surprise you: Customers’ purchasing intent actually peaks right after they place an order. By then, any doubts about buying are long gone, they’re excited

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Smart brands are always looking for new ways to move the needle on revenue growth, including by highlighting best-selling products at different points during the shopping journey.

Here’s something that might surprise you: Customers’ purchasing intent actually peaks right after they place an order. By then, any doubts about buying are long gone, they’re excited to have made a purchase, and they’re often ready to buy even more.

That’s where Recharge’s new post-purchase cross-sells come in. They’re the perfect way to lean into that excitement and get just one more thing into an order.

Here are our 5 favorite ways to use post-purchase offers to drive bigger orders and convert more subscribers—the perfect recipe for revenue growth.

Key takeaways

  • Customers are most inclined to buy products right after they've already bought something else, making post-purchase cross-sells a smart way for brands to grow sales.
  • Post-purchase cross-sells have tons of applications, like highlighting your best sellers or moving through seasonal inventory.

1. Spotlight perfect pairings

Sometimes 1+1=3—like when a serum and a moisturizer deliver better results together than solo. When one of your products can help customers get even more out of something they already have, it’s a win for them and for your bottom line.

And cross-selling isn’t limited to subscription products. It works for one-time purchases too, making them the perfect way to expose more of your catalog and create fun product combinations.

A screenshot of a user interface offering a customer an add-on to their order.

Put it into practice

These pairings work best when they’re super specific—use as many “if this, then that” conditions as you need to show exactly the right offers to the right shoppers.

Then, customize the copy on each offer page to highlight the benefits of that product combo. Hyper-personalization, automated.

Example

Sarah buys a cleanser from a skincare brand she recently discovered. She receives a post-purchase offer for its complementary toning pads, which highlights the benefits of using the two products together for the clearest possible skin.

2. Make sure everyone knows about your hero product

If you have a product that all your customers rave about, it would be a shame for a new customer not to know about it. Make sure they do by showing off its popularity in a post-purchase offer.

A screenshot of a user interface displaying an item's rating and review count.

Put it into practice

Set up a simple post-purchase offer that showcases your best seller to any customer who checks out without it.

Spruce up the offer page’s copy with keywords like “customer favorite” or “award-winning” for social proof, then sweeten the deal with a discount—20% off is very effective, if it makes sense for your margins.

Example

A supplement brand is best known for its greens powder. When Jordan places an order for a collagen supplement, he is shown a post-purchase offer for the greens powder, which highlights that it’s received over 1,000 5-star reviews.

3. Stock up at a discount

There are some things it’s best not to run out of: toilet paper, your dog’s favorite treats, whichever protein bar best keeps you out of the hangry zone.

And while subscriptions are a great way to replenish the essentials, sometimes it makes sense to have an emergency stash. Offering customers a deal on a little stockpile of their latest purchase means better value for you, too.

A screenshot of a user interface offering a customer an additional item at a discount.

Put it into practice

Set up a post-purchase offer that shows customers the same product they just bought, along with some custom copy about stocking up.

Consider offering a slightly higher discount than you normally might—they likely just bought this product at full price and may need a little more motivation to double down. This kind of offer works best for one-time purchases.

Example

Maya regularly orders bags of coffee from her favorite roaster. Because she travels frequently for work, she sticks to one-time orders because it always takes her a different amount of time to get through the bag.

But last month, she got home from a trip to find that she barely had enough for one cup left. So when she placed an order to restock and received a post-purchase offer for a second bag at 30% off, she jumped on the opportunity to have an extra bag on hand.

4. Highlight limited-release products

It’s hard to say no to anything peppermint mocha during the winter. But those seasonal products get far less appealing as spring approaches, and you don’t want to waste excess inventory.

Post-purchase offers on seasonal products are a great way to give them an extra little push.

A screenshot of a user interface offering a customer a seasonal add-on item.

Put it into practice

Set up a post-purchase offer for the limited-release item to any customer who checks out without it. Lean into seasonality and exclusivity with your offer page content to create some urgency.

Just make sure to swap these offers out as the seasons change so you’re not accidentally pushing pumpkin spice in July.

Example

A pet brand makes a dog treat advent calendar for the holidays. When Jenna buys some gifts for her fellow dog-parent siblings during the brand’s Black Friday sale, she gets a post-purchase offer for the advent calendar and adds it to her order as a little treat for her own pup. One more holiday gift crossed off the list!

5. Get them to sample something new

A “sure, why not?” purchase now could turn into a subscription down the line. Use post-purchase offers on sample products to give customers a low-stakes way to try new products—and maybe buy even more of them later. It’s playing the long game.

A screenshot of a user interface offering a customer a free sample add-on.

Put it into practice

Offer a sample-size product or trial pack to any customer who didn’t purchase the full-size version of that product. You might even sway some customers into spending more over time by offering them higher-margin products than they usually buy.

If your margins allow it, consider offering the sample product for free, charging only for shipping. And don’t forget to follow up with those customers and encourage them to add a full-size version to their next order.

Example

Henry places an order for a protein powder from a brand that a friend recommended. After checking out, he gets a post-purchase offer for a sample pack of immunity shots. Since he’s on a health kick and the sample pack is a good deal, he adds them to his order.

The next month, before his subscription to the protein powder renews, he gets an offer to add a 12-pack of the immunity shots to his subscription. Since he loved them the first time, he decides to subscribe to both products moving forward. 

Ready to grow your orders—and subscribers?

You can set up post-purchase offers on Recharge in minutes with Post-Purchase Cross-Sells. Take advantage of the moment that customers are most likely to say yes with strategic post-purchase offers.

With customizable offer logic, conversion-boosting page elements, and frictionless purchasing flows—all in the same place that you already manage your subscription business—it’s easier than ever to watch your revenue grow.

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Points or pointless? Why credits are the way to go for DTC loyalty programs https://getrecharge.com/blog/credits-versus-points/ Mon, 18 Nov 2024 18:23:56 +0000 https://getrecharge.com/?p=24884 A good loyalty program fosters repeat orders and long-term brand attachment, making it an important tool for many brands. However, for subscription-first brands, loyalty needs a different approach. 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,

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A good loyalty program fosters repeat orders and long-term brand attachment, making it an important tool for many brands. However, for subscription-first brands, loyalty needs a different approach.

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.

Image illustrating a pop up informing the user of a credit balance that will be lost of their subscription is canceled
Pop up informing the user of a credit balance that will be lost of they cancel their subscription

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.

Timeline highlighting awards that have been unlocked by the user
Timeline highlighting awards that have been unlocked by the user

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.

Pop up shown to the user reinforcing the benefits of staying subscribed
Pop up shown to the user reinforcing the benefits of staying subscribed

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.

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Steal this strategy: Boosting subscription sales this season https://getrecharge.com/blog/steal-this-strategy-holiday-subscription-sales/ Wed, 13 Nov 2024 15:19:56 +0000 https://getrecharge.com/?p=24867 At this point in the year, the decision fatigue is real. Which tactic will move the needle? What promotion will excite folks? Which cohort has the most potential? 

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At this point in the year, the decision fatigue is real. Which tactic will move the needle? What promotion will excite folks? Which cohort has the most potential? 

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!”

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Top 5 ways to use customer portal announcements and punch cards https://getrecharge.com/blog/portal-announcements-and-punch-cards/ Mon, 11 Nov 2024 13:49:45 +0000 https://getrecharge.com/?p=24842 Recharge Rewards integrates directly with the customer portal. Keep subscribers motivated with dynamic announcements.

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Keep subscribers motivated with dynamic announcements directly in the customer portal. Whether you’re driving engagement with punch cards that encourage order milestones, highlighting the benefits of your subscription program, or promoting exclusive Black Friday/Cyber Monday offers, these announcements provide a personalized way to connect with your customers through the portal.

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.

Screenshot of the Noons Coffee milestone punch card to celebrate subscriber achievements
Screenshot of the Noons Coffee milestone punch card to celebrate subscriber achievements

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.

Screenshot of the TrailTails VIP progress program user experience
Screenshot of the TrailTails VIP progress program user experience

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.

Screenshot of bettermelon Black Friday/Cyber Monday promotion user interface
Screenshot of bettermelon Black Friday/Cyber Monday promotion user interface

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.

Screenshot of Maris consistency tracker subscription promotion
Screenshot of Maris consistency tracker subscription promotion

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.

Screenshot of Noons Coffee subscriber early access incentive program
Screenshot of Noons Coffee subscriber early access incentive program

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.

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Subscriber trends in Health & Wellness: 4 key stats to know https://getrecharge.com/blog/subscriber-trends-in-health-wellness-4-key-stats-to-know/ Thu, 24 Oct 2024 19:02:15 +0000 https://getrecharge.com/?p=24801 The Health & Wellness industry is seeing massive growth—and subscriptions are leading the charge. Recharge’s latest Subscriber Trends report reveals how subscribers are engaging across four major subscription categories: Beauty & Personal Care, Food & Beverage, Health & Wellness, and Home & Pet.  The key takeaway? Health & Wellness subscribers are placing more orders, engaging

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The Health & Wellness industry is seeing massive growth—and subscriptions are leading the charge. Recharge’s latest Subscriber Trends report reveals how subscribers are engaging across four major subscription categories: Beauty & Personal Care, Food & Beverage, Health & Wellness, and Home & Pet. 

The key takeaway? Health & Wellness subscribers are placing more orders, engaging with more products, and spending more money than ever before. Below, we’ll highlight the most compelling data points from the report and show how your brand can use these insights to create a winning strategy.

Key takeaways

  • Health & Wellness subscribers who integrate products into daily routines place 21% more orders.
  • Offering a range of products increases average subscriptions to nearly 5 items per customer.
  • Health & Wellness has the highest AOV and revenue per subscriber.

Hey big spenders: Health & Wellness subscribers placed 21% more orders in the last year

Each of our major industries saw subscribers placing more orders over the last year, but Health & Wellness led the pack with a 21% increase in orders per subscriber. This increase isn’t just about growth—it’s about how Health & Wellness brands have become ingrained in their customers’ daily routines. From daily supplements to fitness products, these brands add value by delivering essentials that consumers rely on.

Takeaway

When a brand becomes a part of a subscriber’s daily life, it’s rewarded with more frequent purchases. To replicate this success, focus on educating subscribers on how your products fit into their routine. Share practical use cases, recipes, or habit-building tips to ensure your products are something they can’t live without.

Hooked on health: Subscribers engage with an average of 4.75 products

While many customers get hooked by a single great product, it’s rarely where they stop. The data shows that Health & Wellness customers subscribe to an average of 4.75 products each. 

It’s clear that customers value diversity, and a varied catalog is a strong selling point.

Takeaway

Brands that offer a wide range of complementary products can encourage subscribers to add more items to their carts, driving up lifetime value. A well-rounded selection means there’s more to love—and more reason to stay subscribed. Think about expanding your catalog to include variations (e.g., new flavors), bundles, or seasonal items to keep things fresh and exciting.

Wants vs. needs: 19% of Health & Wellness subscribers skipped at least one order

Flexibility is a double-edged sword in the world of subscriptions. While it’s a key factor in keeping subscribers satisfied, it also opens the door for churn if not managed effectively. The report found that 19% of Health & Wellness subscribers skipped at least one order. This means that even loyal customers may hesitate to commit long-term without the right balance of flexibility and value.

Takeaway: Balance flexibility with guided support to reduce skipped orders and churn. During onboarding, take the time to understand new subscribers’ needs and educate them on the value of sticking with the program. Offer flexible options, but also introduce personalized recommendations to show them what they’re missing when they skip an order. A loyalty program that rewards consistent engagement can also help keep them invested over time.

High rollers: Health & Wellness boasts the highest AOV and total revenue per subscriber

Health & Wellness subscribers are not just loyal—they’re high spenders. With the highest average order value (AOV) ($63) and total revenue per subscriber ($332) across all industries analyzed, this segment represents a huge opportunity for brands.

Takeaway

Implement cross-sell strategies to maximize AOV and total revenue. Use data-driven insights to suggest complementary products based on a subscriber’s order history. If a customer orders vitamins, for example, consider suggesting protein powders or fitness accessories to round out their health regimen. 

How to use these trends to grow and retain your subscriber base

The Health &Wellness subscription market is growing rapidly, but the most successful brands aren’t just riding the wave—they’re building meaningful, personalized experiences for their subscribers. Here’s how to apply these insights to your own strategy:

  1. Create a strong onboarding experience: Educate subscribers on the value of your products and help them incorporate these items into their daily routines.
  2. Expand your product lineup: Offering a diverse range of products can increase the chance that customers will try—and buy—more from your brand.
  3. Balance flexibility with value: Make it easy for subscribers to skip orders when needed, but keep them engaged with personalized recommendations and rewards.
  4. Maximize AOV with strategic cross-selling: Use your data to create targeted upsell opportunities that enhance the subscriber’s experience.

Ready to unlock the full potential of your health and wellness subscriptions? Use the insights from Recharge’s Subscriber Trends report as your blueprint, and start building a strategy that drives sustainable growth and retention.

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Thriving in the subscription economy: 4 lessons from 20,000 brands https://getrecharge.com/blog/thriving-in-the-subscription-economy-4-lessons-from-20000-brands/ Fri, 18 Oct 2024 19:17:26 +0000 https://getrecharge.com/?p=24784 The subscription economy isn’t just changing the way businesses operate—it’s completely reshaping the way consumers think about ownership and value.

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The subscription economy isn’t just changing the way businesses operate—it’s completely reshaping the way consumers think about ownership and value. Today, it’s not just about offering a product; it’s about delivering an experience that keeps customers engaged and coming back for more.

To find out what separates the top performers from the rest, we analyzed data from over 20,000 brands in our latest Subscriber Trends report. The result: Timely insights that reveal exactly how to tap into customer preferences, drive recurring revenue, and build a loyal subscriber base that sticks around. 

Key takeaways

  • Subscribers generate 3x more revenue than one-time buyers.
  • Rigid subscriptions lead to churn—offer customization options.
  • Suggest complementary products to enhance the subscriber experience.

Lesson 1. Subscribers are your most lucrative and loyal fans

It’s no secret: Subscribers are the lifeblood of a thriving brand. Compared to one-time buyers, subscribers are inherently more valuable—they’re loyal, engaged, and consistently generate recurring revenue that fuels your growth. In fact, data from the report shows that subscribers generate 3x more revenue than one-time customers over their lifetime, thanks to repeat purchases and long-term engagement. The message is clear: Focusing on your subscribers means focusing on the most lucrative segment of your business.

Why are subscribers so valuable? Because they’re not just buying a product—they’re buying into a relationship. These customers are more likely to engage with your brand and advocate on your behalf. 

So how can you tap into this value? Lean into strategies that elevate the subscriber experience at every touchpoint. Offer perks like early access to new products, subscriber-only discounts, and personalized recommendations based on their preferences. The goal is to turn a transactional experience into a relationship that’s built on value, trust, and excitement.

Lesson 2. Variety is the spice of (subscription) life

Nobody likes the same old, same old. When customers have options, they’re less likely to hit the cancel button. A diverse product catalog can be a game-changer in keeping subscribers engaged. Brands with a range of offerings are better equipped to satisfy the evolving tastes of their customers, which can help boost retention and customer lifetime value. 

Data from the report shows that customers of Food & Beverage brands, for example, subscribe to an average of six products per subscriber. By mixing things up—whether it’s new flavors, seasonal items, or surprise bundles—you can keep subscribers excited and engaged.

Lean into your subscription management software to offer exclusive bundles or rotating product lines. Keep subscribers wondering, “What’s next?” and you’ll have them hooked for the long haul. Utilize a subscription management platform that supports bundling and customization options. Consider adding new items based on seasonal trends, customer feedback, or even limited-edition drops to keep things fresh.

Lesson 3: Rigid subscriptions are a one way ticket to churn

Today’s customers want it all: top-notch products and control over their subscriptions. That’s why features like skip-a-month options, easy swaps, and month-to-month plans aren’t just nice-to-have—they’re absolute musts. In fact, the report found that 53% of subscribers have made adjustments to align their subscriptions with their needs. Translation? If your subscription is rigid, it’s already on the chopping block.

Want to boost retention? Give subscribers the power to tweak, upgrade, or pause their plans whenever life throws them a curveball. Let them be the boss, and they’ll keep coming back for more.

Choose a subscription management solution that empowers your customers to tailor their experience. Features like skip-a-month options, plan upgrades, and adjustable delivery dates not only reduce churn but also show customers that you’re committed to meeting their needs, on their terms.

Lesson 4: Don’t just sell—suggest! Create a “binge-worthy” subscription experience

Just like a well-timed show recommendation keeps viewers glued to their screens, brands can cash in on the Netflix effect with cross-selling that keeps subscribers engaged and buying

The data proves it: all industries saw an increase in orders per subscriber when they embraced this strategy—ranging from a 10% boost in food and beverage to a whopping 21% in health and wellness. This indicates that cross-selling strategies, such as bundling complementary products or offering exclusive add-ons, are resonating with subscribers.

Instead of just pushing products, create bundles that feel like you’re curating an experience just for them. Surface complementary items and offer exclusive add-ons that feel less like a sales pitch and more like a thoughtful suggestion. Use tools to analyze purchase patterns and offer relevant recommendations during the checkout process or through email marketing.

When done right, cross-selling isn’t about squeezing more dollars out of subscribers—it’s about deepening their relationship with your brand. The more you tailor the experience, the more likely subscribers are to keep coming back—just like a favorite show they can’t stop binging.

More insights from the evolving subscription economy

These four lessons are just a snapshot of the insights revealed in the Subscriber Trends report. Whether you’re looking to re-engage lapsed customers, diversify your catalog, offer more flexible options, or maximize subscriber spend, it’s clear that data-driven strategies are essential for success in the subscription economy.

For more industry-specific trends and actionable tips, download the full report to see how 20,000 brands are thriving in today’s competitive landscape.

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Meet our Checkout tools: Introducing Grow https://getrecharge.com/blog/meet-our-checkout-tools-introducing-grow/ Tue, 15 Oct 2024 16:16:21 +0000 https://getrecharge.com/?p=24793 As the first tools in our Grow suite, Checkout Upsell and Cross-Sell are crafted to empower brands to make quick and easy improvements to the checkout page that help grow subscriptions and revenue.

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Recharge has rolled out two new tools: Checkout Upsell and Checkout Cross-Sell. As the first tools in our Grow suite, Checkout Upsell and Cross-Sell are crafted to empower brands to make quick and easy improvements to the checkout page that help grow subscriptions and revenue.

Checkout Upsell allows customers to upgrade one-time purchases to subscriptions without leaving checkout, and Checkout Cross-Sell prompts customers to add products or subscriptions that complement what’s already in their cart.

These two products are specifically tailored to grow subscriptions and drive additional revenue at the checkout stage of the customer journey. In the coming months, we’ll introduce additional tools that will support subscription and revenue growth at even more points in the purchasing journey. 

Both Checkout Upsell and Cross-Sell are included in Recharge’s Pro plan at no extra cost. Shopify Plus is required to use them.

Checkout Upsell: Convert customers to subscribers in one click

A typical subscriber generates three times the revenue of a non-subscriber in their first year with a brand. Checkout Upsell helps generate significant repeat revenue for ecommerce businesses by highlighting subscribe-and-save discounts and allowing customers to turn a one-time purchase into a subscription in one click at checkout. 

Checkout Upsell can be set up in less than 60 seconds, allowing brands to start converting customers to subscribers almost immediately.

After converting to a subscription, customers can set their preferred subscription frequency directly from the checkout page, providing flexibility without breaking the purchasing flow. Customers can also manage their subscriptions or revert back to one-time purchases with ease and flexibility.

Brands can track conversion rate and revenue generated from upsold products to stay on top of the success of their checkout upsell widget.

Checkout Cross-Sell: Increase order values directly in cart

Checkout Cross-Sell is designed to drive AOV higher by encouraging customers to add more products to their cart, directly from the checkout page. Customers are presented with products that may complement what’s already in their cart, and add them to their purchase without ever leaving checkout.  This engages customers more deeply with a brand’s full breadth of product offerings, without requiring extra clicks.   

Brands can choose to offer cross-sold products as one-time purchases or subscriptions—giving them the power to not only increase the value of one order, but of every order to come. Plus, subscription frequency and other details can be updated in the same place to give customers complete control without ever leaving checkout.

Brands can track which product cross-sells are propelling the most growth for their business, and unlock insights that allow them to target shoppers with their most effective offers.

Built for the routine economy

Checkout Upsell and Cross-Sell are a no-brainer for supporting revenue goals: They drive repeat purchases, encourage product diversification, and enable customers to manage subscriptions directly in-cart. Customers can easily discover new products to try, then incorporate them into their daily routines by subscribing. 

Recharge empowers brands to build for tomorrow to ensure the health and longevity of their business—powering brands that last. Grow is a foundation that will allow merchants to drive higher order values and recurring revenue, which will lead to better CAC to LTV ratios.

Curious what brands are already saying about Grow? Here’s a sneak peek:

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5 simple strategies to maximize BFCM subscription revenue https://getrecharge.com/blog/5-simple-strategies-to-maximize-bfcm-subscription-revenue/ Thu, 10 Oct 2024 15:09:16 +0000 https://getrecharge.com/?p=24783 As BFCM (Black Friday Cyber Monday) approaches, ecommerce brands are preparing to seize the opportunity to increase subscription revenue. Subscriptions have become a key growth driver, offering recurring payments and building customer loyalty. In this blog, we’ll explore five simple strategies to help you make the most of BFCM by leveraging subscription models to maximize

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As BFCM (Black Friday Cyber Monday) approaches, ecommerce brands are preparing to seize the opportunity to increase subscription revenue. Subscriptions have become a key growth driver, offering recurring payments and building customer loyalty. In this blog, we’ll explore five simple strategies to help you make the most of BFCM by leveraging subscription models to maximize revenue.

With customer retention and loyalty being essential during this high-traffic period, implementing these strategies can help boost your bottom line while fostering long-term relationships.

Key takeaways

  • Use social to build FOMO—reach new audiences with contests or special subscription deals.
  • Early is on time—reward loyal customers with early access to BFCM deals.
  • Bonus gifts go a long way—include a free gift to increase sign-ups and customer satisfaction.

1. Personalized subscription recommendations

Personalization is a powerful tool for subscription-based businesses. By analyzing customer data such as purchase history or preferences, brands can offer personalized subscription options that feel tailor-made for each individual. For example, a skincare brand might use a customer’s skin type and previous purchases to recommend a curated subscription box filled with products that meet their unique needs.

Personalized subscriptions create a more meaningful customer experience, leading to higher engagement, increased sign-ups, and improved customer retention. Tailoring subscription offerings to individual preferences can make the service feel indispensable.

2. Exclusive early access to subscription deals

Give your loyal customers an added incentive by offering them early access to your BFCM subscription deals. For instance, a food and beverage brand could offer exclusive holiday-themed boxes or bundles to subscribers before opening up the offer to the general public. This creates a sense of exclusivity that can be a powerful motivator for renewals and upgrades.

When it comes to engaging BFCM shoppers, early is on time. Early access offers reward customer loyalty, creating upsell opportunities and reinforcing the value of being a subscriber. This can drive renewal rates and increase customer lifetime value during BFCM.

3. Limited-time subscription discounts

Creating urgency with limited-time discounts is an effective strategy during BFCM. For example, a fitness brand could offer a 20% discount on annual memberships for a short period. Promoting these discounts through email campaigns, social media, and paid advertising can capture attention and encourage quick decision-making.

Limited-time offers tap into the fear of missing out (FOMO), prompting customers to commit to longer-term subscriptions. This can result in a significant increase in recurring revenue and improve customer retention over time.

4. Social media-exclusive subscription offers

Social media is a powerful platform for reaching new customers and engaging with your existing audience. Offer exclusive discount codes for new subscriptions on social platforms like Instagram, Facebook, or TikTok. Take it a step further by encouraging user-generated content, such as sharing the offer with friends for additional discounts or rewards.

Social media-exclusive offers can help brands tap into new audiences and boost brand visibility. Offering rewards for sharing and referrals can further amplify these promotions, driving new subscription sign-ups during BFCM.

5. Bonus gifts with subscription sign-ups

Sweeten the deal for new subscribers by offering a bonus gift with their subscription purchase. For instance, a coffee brand could offer a free branded mug with a 3-month subscription. These small gestures can enhance the perceived value of the subscription and provide customers with an immediate reward for signing up.

Including a free gift with a subscription can serve as a powerful incentive, increasing conversion rates. The added value makes the customer feel like they’re getting more for their money, boosting satisfaction and loyalty from the very start.

A/B test to gather early insights

The months leading up to Black Friday/Cyber Monday present a prime opportunity to A/B test these different strategies and understand the appetite of your audience ahead of the holiday frenzy and grow your subscription revenue.

Identify one or two of the above strategies to test, and incorporate across some high value segments you’ve identified. Consider offering personalized recommendations, exclusive access or limited-time discounts.

Implementing these strategies will not only drive short-term gains during BFCM but also foster lasting customer relationships that lead to long-term success.

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Re-engaging inactive subscribers: 4 win back strategies to explore https://getrecharge.com/blog/re-engaging-inactive-subscribers-4-win-back-strategies-to-explore/ Sat, 28 Sep 2024 19:05:00 +0000 https://getrecharge.com/?p=24782 Inactive subscribers are an untapped source of revenue for many e-commerce brands. With competition intensifying, re-engaging inactive customers can be more cost-effective than acquiring new ones. 

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Inactive subscribers are an untapped source of revenue for many e-commerce brands. With competition intensifying, re-engaging inactive customers can be more cost-effective than acquiring new ones. 

In this blog post, we’ll explore why inactive customers are a significant opportunity and how brands can revitalize their subscriber base using targeted, data-driven strategies.

Key takeaways

  • Winning back 5% of lapsed subscribers can boost your base by 35-40%.
  • Personalize to win subscribers back - tailor offers to why customers left for better results.
  • Keep it simple, remove barriers and streamline reactivation.

How to define inactive subscribers

At Recharge, inactive subscribers are defined as those with no active subscriptions. This means they’ve either canceled their subscription or allowed it to lapse without renewal.

Focusing on this specific segment is the first step in building an effective win-back strategy, allowing you to craft tailored campaigns to re-engage them and encourage a subscription renewal.

The hidden revenue potential of inactive subscribers

It’s common for brands to focus heavily on acquiring new subscribers, but ignoring inactive subscribers can leave money on the table. In fact, there are seven to eight lapsed subscribers for every active one—a huge potential revenue source. Plus, inactive subscribers often require fewer marketing resources to win back compared to new customers.

Here’s what the data says. Brands have 7-8 inactive subscribers for every active subscriber. Imagine winning back just 5% of these inactive subscribers — this could grow your subscriber base by 35-40%. By putting a structured reactivation strategy in place, you can create substantial repeat revenue with minimal additional costs.

The impact of inactive subscribers on revenue

When customers lapse from their subscriptions, it directly impacts your bottom line. Subscriptions are built on loyalty and predictability, so each inactive customer represents lost recurring revenue. However, re-engaging inactive subscribers not only revives this revenue stream but also enhances customer lifetime value.

Brands that successfully win back lapsed subscribers can see significant growth in their repeat revenue and overall retention rates. This makes reactivation campaigns essential for long-term success in subscription ecommerce.

Why brands need a proactive reactivation strategy

Inactive subscribers don’t just vanish overnight—it’s often a gradual process influenced by several common factors like price sensitivity, lack of perceived value, poor customer experience, or disengagement with brand communications. Top reasons consumers cancel subscriptions include:

  • High Cost: Customers often cancel when they feel the product or service is not worth the price.
  • Lack of Use: If customers don’t find enough value or utility in the subscription, they are more likely to churn.
  • Poor Customer Experience: Issues like complicated cancellations, poor support, or negative interactions can quickly drive customers away.
  • Unmet Expectations: When the subscription doesn’t deliver on its promises, customers lose trust and interest.
  • Better Alternatives: The availability of a superior or more affordable option can prompt subscribers to switch.

In many cases, customers signal their intentions long before they churn, through reduced engagement or by stating these cancellation reasons directly. By leveraging data to identify these early indicators, brands can implement targeted reactivation strategies that address the root causes of churn. For example, offering discounts for price-sensitive customers, showcasing added value for those feeling disengaged, or providing tailored subscription options for those seeking more flexibility. This proactive approach allows for personalized offers and communications that speak directly to their needs, encouraging them to re-engage before it’s too late.

Where customer reactivation strategies fall short

Many reactivation strategies fail because they offer a fragmented customer experience. Customers encounter friction at multiple points — whether it’s complex logins or generic offers that don’t address their needs. These disjointed experiences often lead to frustration, making it harder to bring customers back.

Additionally, merchants may lack the tools necessary to personalize reactivation campaigns. Without data-driven insights or customizable landing pages, brands miss the opportunity to create meaningful connections with their inactive customers, leaving money on the table.

What is a win-back campaign?

A win-back campaign is a targeted marketing effort aimed at re-engaging inactive customers. These campaigns typically involve personalized offers, special incentives, and communication strategies that encourage customers to return to your brand. Done correctly, win-back campaigns can significantly boost your retention rates and drive recurring revenue.

4 proven strategies to win back inactive subscribers

  1. Customizable landing pages

One of the most effective ways to win back inactive customers is through personalized landing pages that highlight deals on products the customer is likely to be interested in. Tailor the content and messaging to meet their needs and address the specific reasons why they may have canceled or stopped engaging. These pages should reflect your brand identity while showcasing how your product or service has evolved to better serve them, making it clear that returning to your brand offers tangible value.

  1. Hyper-personalized incentives

Offering targeted incentives can make a reactivation offer more appealing. Analyze customer data to provide hyper-personalized offers, such as discounts based on past spending behavior or customized promotions based on why the customer lapsed in the first place. This personalization helps customers feel valued, increasing the likelihood that they’ll return.

  1. Frictionless customer experience from end-to-end

Inactive subscribers are more likely to return if the reactivation process is easy. Reduce friction by streamlining the customer journey — eliminate unnecessary steps like complicated logins or forms. Ensure that customers can quickly and easily resubscribe, update their payment information, or renew their subscriptions without hassle. A seamless user experience makes it easier for them to re-engage.

4. A/B test and optimize overtime

A data-driven approach is key to maximizing the success of your win-back campaigns. Use A/B testing to determine which incentives or offers resonate best with your customers. Continuously track the performance of your campaigns and optimize them based on insights gathered from customer interactions. This helps refine your reactivation strategies and boosts long-term results.

Reactivate churned subscribers to unlock revenue

It’s easy to write off lapsed subscribers but customer acquisition takes so much time and money. Utilizing these smart re-engagement tools that emphasize personalization and customizing the journey are essential to win back once-lapsed subscribers.

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4 creative incentives to grow your monthly subscriber base (plus examples) https://getrecharge.com/blog/4-creative-incentives-to-grow-your-monthly-subscriber-base-plus-examples/ Tue, 24 Sep 2024 15:48:01 +0000 https://getrecharge.com/?p=24727 Subscription models have become an essential strategy for brands looking to build a loyal customer base while generating recurring revenue. Whether you’re a startup or an established brand, finding the right incentives to attract and retain subscribers is crucial.  In this post, we’ll explore four creative incentives that can help grow your monthly subscriber base,

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Subscription models have become an essential strategy for brands looking to build a loyal customer base while generating recurring revenue. Whether you’re a startup or an established brand, finding the right incentives to attract and retain subscribers is crucial. 

In this post, we’ll explore four creative incentives that can help grow your monthly subscriber base, with real-world examples from successful brands like Hello Bello, Gainful, CrunchLabs, and Blueland. By the end, you’ll have a better understanding of how to leverage these strategies to elevate your subscription model.

Key takeaways

  • Exclusive access builds subscriber value by offering unique perks, like Hello Bello’s seasonal diaper designs, which create urgency and boost subscriptions, leading to higher GMV.
  • Personalization strengthens loyalty, as seen with Gainful’s expert advice, fostering community, reducing churn, and encouraging long-term engagement.
  • Aligning incentives with brand values encourages growth, with Blueland’s sustainability focus turning subscribers into brand evangelists, driving word-of-mouth expansion.

The rise of subscription models in ecommerce: Why they matter more than ever

Subscription models are gaining traction in the ecommerce world for good reason. They offer a steady stream of revenue, foster customer loyalty, and provide valuable insights into consumer behavior.

With the global ecommerce market booming, brands that embrace subscription models are positioned to reap significant benefits. However, with increasing competition, it’s essential to stand out by offering compelling incentives that encourage customers to subscribe.

The top challenges brands face in growing their subscriber bases

Growing a subscriber base is not without its challenges. Common hurdles include customer churn, the need for continuous engagement, and the difficulty of convincing potential subscribers of the value of recurring payments.

To overcome these challenges, brands need to offer unique and attractive incentives that not only draw customers in but also keep them engaged over time.

4 brands using creative incentives to attract and retain subscribers

Incentives are a powerful tool for subscription-based businesses. When used effectively, they can significantly boost subscription rates and reduce churn. Let’s dive into four creative incentive strategies that have proven successful for brands.

Build hype with exclusive access to new products

Hello Bello, a personal care brand specializing in products for infants, offers a diaper subscription bundle that allows customers to customize their orders with diapers, wipes, and other essentials. What sets Hello Bello apart is their use of exclusive, seasonal diaper designs available only to subscribers. This strategy creates a sense of exclusivity and urgency, encouraging customers to subscribe or upgrade their plans to access these unique designs.

By offering exclusive products, Hello Bello not only drives curiosity but also incentivizes customers to commit to a subscription, leading to increased overall gross merchandise volume (GMV).

Hello Bello offers up fun, seasonal and unique diaper designs that can only be purchased as a subscriber. 

Build a sense of community through personalized subscriber perks

Gainful, a health and wellness brand, offers personalized nutrition plans that include protein powders, supplements, and hydration products tailored to individual fitness goals. Subscribers receive an additional perk by gaining access to a registered dietitian, making their experience highly personalized and supportive.

Gainful offers their subscribers personalized advice from a registered dietitian, who tailors recommendations to their unique nutrition habits and goals.

By fostering a community of like-minded individuals and offering access to expert advice, Gainful strengthens customer loyalty and reduces churn. Subscribers feel they are part of a supportive network, which enhances their overall experience and commitment to the brand.

Customize the experience with subscription boxes

CrunchLabs provides monthly STEM (Science, Technology, Engineering, and Mathematics) subscription boxes designed by a former NASA engineer. Each box includes hands-on projects that teach kids critical thinking and problem-solving skills in a fun and engaging way.

CrunchLabs offers annual, monthly and quarterly subscription boxes so kids can independently learn engineering and science concepts through hands-on play.

The ability to customize and personalize the subscription box experience is a major draw for customers. By offering a product that is not only educational but also customizable, CrunchLabs has created a unique value proposition that appeals to both parents and children, driving subscription growth.

Build a sense of evangelism and goodwill

Blueland, an eco-friendly cleaning products brand, offers a subscription service that promotes sustainable living. Their products come in reusable bottles with tablets that dissolve in water, reducing plastic waste. Subscribers can customize their shipments and receive refills at a discount.

Blueland practices what they preach, encouraging new subscribers to stay sustainable by providing eco-friendly bottles with new purchases. 

Blueland’s incentive strategy ties directly to their brand ethos of sustainability. By offering products that align with their customers’ values, they build a sense of goodwill and evangelism among their subscriber base. This not only attracts environmentally-conscious customers but also encourages them to spread the word about the brand, further driving growth.

How to choose the right incentive strategy for your brand

Choosing the right incentive strategy depends on your brand’s goals, target audience, and product offerings. Consider the following factors when deciding on an incentive strategy:

  • Product type: Is your product consumable, like Hello Bello’s diapers, or more experience-based, like CrunchLabs’ STEM boxes?
  • Customer values: Does your audience value exclusivity, personalization, community, or sustainability?
  • Brand ethos: How can your incentive strategy reinforce your brand’s mission and values?

By aligning your incentive strategy with your brand and customer expectations, you can create a compelling subscription model that drives growth and customer loyalty.

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