Top 4 Ways DTC Stores Use Data To Increase Subscription Revenue

Increase customer subscription loyalty, boost CLV, and prevent churn with these data-informed strategies.

Subscription programs help businesses build loyal customer bases and generate recurring revenue.

But what if you’re missing out on valuable opportunities to increase your customer’s AOV? And better yet, prevent churn?

A handful of minor changes can boost customer loyalty, LTV, and user experience. Here’s a few ways to get started.

1. A product so nice, they bought it thrice.

If you have a subset of customers that keep returning to place manual orders, target them with a subscription.

They’ve already demonstrated that they like your product and are willing to buy again! Create a post-purchase journey that explains the convenience of automatic deliveries (and don’t forget to highlight the easy pause, edit, cancellation policy).

Make sure to sweeten the deal. Everyone gives discounts — stand out & reward users with a sense of exclusivity or clear benefit for subscribing beyond saving a few bucks. Think exclusive merch, early access to new products, subscriber-only gifts, or community perks. Build a landing page that clearly lays out the benefits, features, and ease of a subscription.

Repeat buyers are more likely to opt into a subscription, so focus on reaching them through owned channels like email and SMS instead of reserving the subscription push to your PDP.

2. Know the signs of a break-up.

Analyze your customers’ patterns to find out when they leave your subscription service. Then figure out why. Then push an offer that solves or prevents their pain point before they decide to cancel.

For example, if customers churn after a certain number of months, adjust your subscription options to longer or shorter commitment periods. You could also try including an offer, like a free gift or a value-add, at that milestone to prevent said churn.

At Kulin, our subscription platform of choice is Stay.ai. They’ll keep you ahead of the competition with comprehensive features that can help you analyze and manage churn. Check out this Twitter thread to see how their reports stack up!

3. Bundle up.

If your customers are loving a certain product enough to subscribe, they’re likely to enjoy another. Increase their AOV by making it easy to add products that work amazingly well with their current subscription through easy add-ons or pre-made bundles.

Use your upcoming delivery notifications as an opportunity to upsell or cross sell them on bonus items, accessories, perfect pairings, and new features or drops.

Got lots of SKUs? A build-your-own-bundle approach might be the best play for your brand. The added flexibility and personalization options are key to ensuring happy subscribers stay happy.

4. Turn churns into chums.

Churned customers can give great insights into why they ended their subscriptions.

Send a survey upon cancellation asking them why they’re cancelling, then craft personalized reactivation flows based on the concerns they’ve voiced (this is super easy if you’re using Klaviyo x Stay.ai). Don’t forget to optimize winback offers based on the feedback you’ve collected and include messaging reminding them of the flexibility (like pausing or changing delivery frequency) your subscription offers.

At the end of the day, it’s really all about customer experience. By using data to optimize your DTC subscription program, you can build a loyal community of happy subscribers, all while maximizing monthly recurring revenue and LTV for your brand.

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