Want to drive major brand growth on Amazon?

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Subscription revenue is the answer. 💪

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Once you've fine-tuned your strategy to generate Amazon subscriptions, your brand can focus on assertive strategies for acquiring new customers. 

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Subscribe and Save discounts allow you to ease up on strict profit margins for first-time buyers, knowing you’ll make the revenue back (and a profit!) from the lifetime value of your consumers. 

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Subscriptions also provide a stable recurring revenue source, allowing for more predictability and added forecasting confidence. 😌

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Despite the massive value of building subscription revenue, some brands are still reluctant to fund the full 10% for Subscribe and Save (SnS) orders. 

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The Pilothouse Amazon team always recommends funding the maximum 10% discount for Subscribe and Save ASINs (Amazon Standard Identification Number) to maximize the subscription rate.

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Weary about funding SnS? Here’s why we think you should: 👇

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1️⃣ Funding the full 10% maximizes the incentive for customers to subscribe

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While it's a fact that certain customers might exploit subscriptions solely for the associated advantages and promptly cancel, it's important to recognize that this behavior is only a portion of the customer base, not the entirety.

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Funneling some resources into the Subscription and Save (SnS) approach has proven effective in bolstering the monthly subscription earnings across various client accounts. 💸

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This indicates that the benefits outweigh the drawbacks posed by some customers' occasional subscribe ➔ unsubscribe pattern.

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Additionally, Amazon funds an additional 5% on subscription orders that ship five or more items in a single order, further incentivizing customers to keep their subscriptions. 

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2️⃣ Increases organic sales and funds prospecting efforts

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Each subscriber is a future order waiting to come through. 

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Many consumable product categories have very high CPC (cost per click) and CPA (cost per acquisition), meaning your customer acquisition strategy is frequently not profitable on first purchase. 

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Repeat subscription sales are highly efficient with the equivalent of only a 10% ACOS (Advertising Cost of Sale). 

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How is the Pilothouse team supercharging subscription rates? SnS coupons! 🎟️

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SnS coupons, which rolled out into Seller accounts earlier this year, function like normal Amazon coupons. However, they only apply if the customer subscribes, giving sellers a lot more influence over subscriptions than before. 

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The team likes to utilize these coupons with an aggressive discount (think 20%+ off) to really encourage a subscription. The margin sacrifice on the first purchase is usually worth the subscription growth gained. 

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Does it work? You bet it does! This tactic allowed the Pilothouse Amazon team to more than double an already six-figure monthly subscription revenue year-over-year. 🔥  

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These highly efficient sales are a powerful way to scale your brand and provide funding for your prospecting PPC (pay-per-click) efforts. 

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If you utilize them well, this creates an SnS flywheel where you acquire customers through prospecting PPC, a percentage of these customers subscribe, their future SnS orders fund more prospecting, and the cycle scales and repeats. ♻️