Many ecommerce companies today utilize a subscription-based model, where consumers can sign up and pay for products for a specific number of weeks or months shipped and delivered to their doors. This type of business strategy is increasingly popular, as customers are looking for a more personalized experience when making an investment in an organization. Online retailers like Birchbox promote the flexibility of the model itself, as well as how the endeavor creates stronger relationships with clients, according to Entrepreneur. It’s crucial for ecommerce companies to develop stable retention strategies for these consumers. Let’s take a look at how they can do just that:
Keep pricing and choices simple
It’s common for online customers to see advertisements for great offers, only to be disappointed by the fine print. To avoid resentment, ecommerce subscription companies should create a pricing model that’s easy for clients to understand and afford. These businesses should break down client costs so they know exactly what they’re paying for. If subscription expenses increase after a certain period of time, clients should be notified. This practice will ensure consumers remain satisfied with an organization and may result in continued subscription.
In addition, ecommerce subscription enterprises need to keep their product choices simple for consumers. It’s easy for clients to become overwhelmed if there are too many options to select from. Smaller choices are OK, as customers are trusting the online business to contribute the elements they feel will suit people best, according to Hubspot. Making decisions as effortless as possible will keep customers engaged and build a business’s credibility with its audience.
While some people may just be looking to test out the products and services an ecommerce company offers, others may purchase a subscription for the long haul. To reward these consumers – and entice new clients – online organizations should provide discounts for more long-term support, according to CIO. Combined with a variety of simple selections, a promotional cost reduction for customers willing to purchase upfront can improve profits and further enhance client relationships.
Streamline the renewal process
With subscriptions, there are two possible continuing actions: cancellation or renewal. Obviously, ecommerce companies don’t want their consumers to cease using their services, so formulating a system for recurring payments is critical to success. Whether the process comes after one month or six, online businesses need to develop a renewal procedure that is easy for clients. Management of these payments is often no more difficult than single transactions, although organizations need to find a method that works for them and their clients, according to Practical Ecommerce. While automatic resumption works for some customers, others could be irked that their credit card or other payment method was charged without indefinite approval. Ecommerce subscription organizations need to find a tactic that works for their business and its consumers on a regular basis. With a streamlined renewal process, these companies can maintain or increase client satisfaction.
“Outsourcing fulfillment offers scalability to ecommerce subscription companies.”
Use a fulfillment service
Consumers who have purchased a subscription from an ecommerce company expect their goods and services to be processed and delivered in a timely manner. Depending on the number and size of the orders, it can be difficult for some businesses to complete this practice efficiently. As a result, many organizations have decided to outsource this portion of their operation to a third-party provider. These vendors can check product availability, pick and pack the order, ship the package and complete outbound customer engagement to ensure the delivery met or exceeded customer expectations.
Furthermore, outsourcing fulfillment allows entrepreneurs and their employees to focus on other aspects of their ecommerce company, from customer service to marketing efforts and beyond. Third-party vendors offer scalable solutions, enabling ecommerce subscription businesses to add or reduce the level of assistance depending on need.
Ecommerce subscription services are trending in the business world today. Consumers like the idea of paying a flat rate for a combination of goods or services they’re interested in. It’s important for online companies to use this knowledge to their advantage and develop creative ways to keep customers engaged. By keeping options simple for clients, offering discounts to long-term subscribers, streamlining the renewal process and reaping the benefits of a fulfillment service, organizations offering subscriptions can retain valuable customers while attracting new people to their products.