There are lots of ways to go about conquering the world of e-commerce, and subscription-based services have proved particularly popular and potentially lucrative in recent years.
If you’ve already dabbled with this niche but haven’t found that it has met your original expectations, take a look at the following tips for maximizing the profitability of a subscription e-commerce store, and see if any of them can help improve your operations.
Use a Specialist Website Platform Designed for Subscription Stores
Rather than opting for a generic platform like WordPress, it’s worth making the switch to a specialist solution that’s been designed for subscription stores from the ground up.
Subscription-specific platforms like Subbly are tailored towards the needs of subscription businesses, with features like automated renewal billing and customer management built in. They also come with integrated marketing tools that make it easier to promote subscriptions and upsells, as well as analytics dashboards that provide deep insights into key performance metrics such as monthly recurring revenue (MRR).
Thankfully it’s a breeze to migrate your e-commerce site from WordPress to Subbly, so there’s no excuse for holding back.
Take Advantage of Automation Tools to Streamline Processes
The latest automation tools are a great way to streamline processes and make running your subscription e-commerce store more efficient, which will in turn result in improved revenues.
With the right software, you can set up automated tasks like billing cycles, customer onboarding sequences, email campaigns, or even trigger specific actions when certain conditions are met. This means that key business functions get taken care of without any manual intervention from you, freeing up time for other important activities such as marketing and product development.
Plus, some automation platforms come with advanced features like A/B testing capabilities, so you can run experiments on different pricing models or promotional tactics to see what works best for your customers.
Implement Strategies for Retaining Customers Long Term
Retaining customers is essential for any successful subscription e-commerce store. Without a steady stream of repeat purchases, your profits will soon start to suffer. So what strategies can you implement to keep customers around long term?
First off, focus on delivering a great customer experience. Always make sure that your products and services meet their expectations and provide the value they’re looking for.
Secondly, use loyalty rewards programs or discounts on future orders as incentives to stay subscribed longer.
Finally, establish meaningful relationships with your customers through excellent communication channels like email newsletters or social media interactions. This way you show them that you care about their feedback and take it into account when making decisions.
Utilize Upsell and Cross-Sell Opportunities to Increase Sales
We mentioned upselling and cross-selling earlier, but it’s worth reemphasising that they can make a world of difference to the profitability of an e-commerce subscription business. In short, by offering customers additional products or services related to their current subscription, you can boost your profits without having to acquire new users.
For example, if someone is already subscribed to your monthly plan, try suggesting an annual upgrade for a discounted price. They’ll get more value out of their purchase, and you make more money in the process.
You can also use cross-selling techniques, like bundling complementary products together at a discounted rate. This encourages customers to buy both items, even though they may not have initially considered it, resulting in higher overall sales figures for your store.
The Bottom Line
Even if you feel that your subscription e-commerce store is ticking over nicely, there’s always room for improving its earning potential, so don’t rest on your laurels, but rather leap into action to realize its untapped assets.
