Ecommerce is becoming more and more essential. While giants like Amazon and Walmart make certain markets quite competitive, there is 1 best practice that no ecommerce business should ignore: the subscription offer. Amazon calls it “subscribe and save,” which makes sense. Why? Because customers are given a discount if they commit to repeat orders. If you don’t think you can find room in your price margins to offer such a discount, then crunch the numbers again until you do; or better yet, listen to why you must make room for this powerful and effective business strategy.
It Maximizes Customer Retention
To really retain customers, you have to have a killer product that people will want to buy again and again. Once you’ve got that down, then it’s best to put re orders on autopilot with subscription offerings. When you’re able to put your product on set and forget it status, you’ll get a more consistent revenue stream.
It Makes Inventory Management Much Easier
When you know how much product you’re going to sell ahead of time, you won’t have to worry about over or under-stocking. If you know for sure that you’ll need at least 100 of the same items a month, it makes you quite valuable to the manufacturer. If you’re able to place consistent orders, you may even be able to get a discount as well.
It Increases Your Return On Marketing Spend
It doesn’t matter if your customers are getting to your site through SEO, PPC, Social Media, or Emails–marketing costs money. Without an auto-stock option, someone may click onan ad, buy 1 product, and then not return; however, if they do sign up for “subscribe and save,” your margins get better: 1 purchase turned into 3 more consecutive purchases makes certain marketing channels super lucrative. As long as you are tracking conversions properly, you should be able to see the change in ROI quickly.
Implement Subscription Billing With Subscription DNA
Compatible with most CMS’s and frameworks, Subscription DNA makes subscription billing easy. Visit our site or contact us to learn more