McKinsey reported that the subscription eCommerce market has been growing at more than 100% year over year since 2013.
Businesses are embracing subscriptions because of the sustainable revenue opportunity.
Today, we see subscriptions across multiple niches in DTC, from shaving accessories to pet supplies.
Regardless of niche, there are some challenges that DTC subscriptions are facing, such as difficulty differentiating and increasing churn.
Five Best Practices for DTC Subscriptions 👇
Give customers the flexibility to make one-time purchases.
While businesses find long-term subscriptions more advantageous, subscribing to a product or service for six months or annually can intimidate customers. 🥵
Existing customers might want to add a non-recurring one-time purchase along with the regular subscription.
🚨 For these scenarios, it’s helpful to give customers the option to make one-time purchases at checkout along with subscriptions.
Notice how Superfoods Company offers both these options at their checkout:
Build exclusive communities:
Today’s DTC consumers choose brands that treat them as people, not buyers.
DTC businesses that do this well offer lifestyle content and concierge shopping services to make the brand a go-to resource in the niche.
Online communities are an excellent vehicle for achieving this.
Besides creating a feeling of belonging, communities also offer a space for users to discover more about the product and how others are using it.
Further still, it’s a quick way to solve their questions and set your brand up for customer success.
For example, check out this private Facebook group exclusively created by BARK.
Superior customer experience:
A positive and memorable customer experience plays a MASSIVE role in acquiring and retaining customers.
👉 Because of the convenience of the subscription model, customers often ‘subscribe and forget.’ 👈
To keep customers hooked, find ways to keep the warm and fuzzy feelings alive by making their subscription experience memorable.
Provide exclusive samples or sneak peeks of upcoming products, or even include a surprise element in each shipment.
Olipop is one of the BEST at this. Check out what they did for a customer whose house flooded… talk about going the extra mile. :)
Tie your products to recurring behavior:
Subscriptions are very convenient for customers, and the recurring nature of subscriptions lends itself to your product as well.
For habit formation with your product, tie it with a recurring behavior in a customer’s life.
Trade Coffee and Dropps are two great examples of brands capitalizing on a recurring behavior.