Subscription models have been around for as long as we can remember, out of which the most popular ones have been magazines and newsletters. But when it comes to the world of e-commerce, subscription services are relatively new but they are quickly gaining popularity. Invespcro has noted that more than 54% of online buyers have subscribed to an e-commerce based subscription service with a personalized experience, convenience, and value for money being the main reasons for subscriptions.
Customers are Attracted to Them
As noted, online customers love subscription services and it makes sense that if they want it, you should go for it. Besides, once peoples subscribe to something, they hardly cancel it. Subscriptions also influence the customer's buying decision by saving them from needing to make a decision every they buy a product. This results in a stable flow of income.
You Get Better ROI
Better ROI, more success. A good customer acquisition strategy is quite important in e-commerce. Repeat business is behind the success of a successful and stable online business. About 82% of business owners say that repeat customers are the secret to a good business. Subscription models are pretty good customer retention tools, for example, if a customer subscribes to your service, it calls for a repeat business the moment they make their purchase.
Excellent Margins and Value
According to research, 30% of online orders are returned, which reduces profit margins for retailers. However, if online marketplaces implement a subscription-based model, then it saves them from additional expenses like shipping or replaceability. These models are also cost-efficient in terms of marketing, and also allows the companies to have an approximation about their shipments. This then enables the company to make effective deals and have low contingencies. For the customer, budgeting becomes easier, and purchases are predictable.
They Offer a Personalized Experienced
About a third of online customers who subscribe to e-commerce subscriptions say that they prefer a personalized experience. Subscription models these days work on algorithms that give shoppers a personalized experience that helps them pick the right product or service for themselves. From selecting the right color to entering payment information, buyers wish for more control in their hands. You can make shopping easier and fun by providing them with subscription services and they might stick around for longer.
Wondering how fruitful investing in an e-commerce-based subscription service would be? Read on to know.
Infographic by: Invespcro.com