How Shopify Subscriptions Can Help Improve Your Sales
Have you ever struggled to bring in consistent sales in your business? Do you want an easy solution to your problem? Consider using Shopify subscriptions.
A subscription model is a great way to get people to buy from you month after month. You don't need a ton of products or a huge marketing budget to make it happen.
Still not convinced? Read on for some of the benefits of subscriptions and how to get started with them.
One of the benefits of selling Shopify subscriptions is that it will be easier to retain customers. When you focus on one-off purchases, you may get a lot of sales quickly.
However, you will have to keep marketing to current and new customers to grow your business. If you set up a subscription, you will only have to sell to someone once, but you can keep earning money from that sale.
A customer can subscribe to receive a product every month, meaning you know you'll make money. Of course, people can cancel their subscription, but customer retention will be better overall.
Similarly, you will have a better return on investment (ROI) whether you focus on CPG subscriptions or digital subscriptions. You can acquire a customer and make more money from that one acquisition.
Perhaps your basic product costs $20. If you sell it as-is, you'll bring in $20 with each sale. However, if you turn that into a monthly subscription, you can get $20 per month for as long as that customer keeps their subscription.
Even if someone subscribes for a couple of months, the ROI is already much better than one-off sales. That way, you can focus on getting more customers to help grow your business.
When you sell products, you have to worry about how much inventory to keep on hand. Whether you sell one product or a dozen products, it can be hard to predict what you'll need.
And if you run out, you could lose out on sales and revenue. Fortunately, Shopify subscriptions can help you minimize the risk of that happening.
When people subscribe, you can get a good idea of how much inventory you'll ship in the following months. That way, you can order enough to fill orders but not so much that you end up with inventory you can't sell.
Receive Recurring Revenue
Recurring revenue is an excellent goal for any business, and the eCommerce world is no exception. If you have trouble getting recurrent revenue, you won't be able to grow your company.
Even if you sell a few subscriptions a month, that can be enough to keep your business running. You won't have to worry about losing a ton of revenue from month to month.
Not only can that keep your business afloat, but it can help fuel your growth. Once you get a few subscriptions, you can get even more subscribers and make more money.
Of course, receiving income each month is useful to your Shopify business, but subscriptions can also help you predict revenue. If you ever want to get an investment or a loan, having consistent revenue is essential.
You may not be able to get much of an investment without consistent sales. And while you may get a loan, the interest rate may be high, and the loan may be hard to pay back.
Financial forecasting can also help you plan for the future without an investment or loan. That way, you can determine when to hire people or if you should add a new product to your store.
Lower the Cost
A Shopify expert knows how to make the most of their store and each sale. Because you can predict sales and revenue, you can take advantage of bulk discounts from manufacturers.
That can lower your overall cost and increase your profit margin. And you can offer a lower monthly cost to your subscribers because you know you'll receive that revenue.
If you use that lower price in your marketing materials, you may convince more people to subscribe. Then, you can repeat the process with each new customer to make and save even more money.
Enhance the Product
Shopify subscriptions are also useful for product development and improvement. If a customer doesn't like the product one month, you can use that feedback to make the product better.
Then, you can send the better version the next month and get more feedback. The more customers that provide feedback, the better you can make your product.
When that happens, you can encourage customers to maintain their subscriptions longer. And you can use subscriptions to tease new developments before you offer the full product.
Improve Customer Relationships
You could use the best Shopify theme and design as possible, but that may not encourage customers to come back to your site. But offering subscriptions can help you maintain relationships with your customers.
Each time you send an order, you can include a note with an exclusive discount or some other benefit. You can also use subscriptions to upsell and cross-sell other products.
As you build relationships with your customers, upsells will be easier because your customers will trust you more. Eventually, they won't question if your products are the best because the subscription will be proof.
Grow Your Brand
Selling subscriptions with Shopify can also help you grow your overall brand and business. Include your branding in your subscription packages, such as your fonts and colors so that customers see your branding each time.
Your customers can also come to look forward to each subscription package they receive. And happy customers may recommend the subscription to their friends and family, which can help you get more sales.
Having a good approach to growing your brand is crucial to maintaining that growth. Offering a subscription is an easy way to stay on top of your customer's minds.
Offer New Products
Sometimes, you may decide to offer a new product to help improve your sales. But it can be hard to start getting one-off sales of a product that people haven't used.
If you sell subscriptions, you can include a trial version of your new product with the next shipment. Ask your customers for feedback on the product so that you can polish it before selling the full version.
Then, you can sell the full product as its own subscription or adjust your subscription tiers to account for the extra product.
Create Different Subscriptions
Another great way Shopify subscriptions can help you increase sales is by offering different subscriptions. You can offer a basic package for a lower price and a more expensive option that includes more features or products.
While you may only want to offer a premium tier, it can be hard to convince someone to buy. But if they can get a taste of your subscription for a more affordable rate, they may be more likely to enroll.
Customers can then choose the best subscription tier for them. That way, you can keep getting sales, even if your customers don't have much money to spend.
Customers love convenience, and CPG subscriptions are an excellent tool to provide that. Your customers only have to place an order once, and they can keep receiving your products regularly.
Then, you can save your customers time each month. They won't have to spend time placing an order when their products run out or when they want something new.
When marketing your business, you can make that convenience a selling point. Not only will that help you get a sale, but it can help you stand out from your competitors if they don't offer subscriptions.
Brand loyalty is an important part of building a successful eCommerce business. If you provide a good, personal experience, your customers will want to come back.
They may decide to upgrade to a more expensive subscription. Or if you also offer one-off products, your customers may buy those in addition to their subscription.
When your customers like your work, you won't have to worry about them leaving you for the competition. Then, you can keep growing your business.
How to Implement Shopify Subscriptions
Now that you know how Shopify subscriptions can help you increase sales, you should consider how to set up the subscriptions. You don't need to be a Shopify expert or have a ton of products to do this.
As long as you have a Shopify account and can follow a few steps, you'll be able to take your business to the next level. Consider how to set up subscriptions for your Shopify store.
Determine How to Structure Subscriptions
Before you do anything technical to your store, consider what you want to offer in a subscription. You can keep it simple and offer individual products on a recurrent basis.
If you know your customers like trial periods, you can start with that. Then, you can convert the trial into a subscription when the customer wants to keep receiving it.
You can also build subscription boxes where you find different products that revolve around a central theme. Each month, the box will have different products.
Perhaps you want to provide a personal experience, so you let your customers choose the products for their subscription box. Another option is to offer exclusive content to subscribers or to include special discounts.
Depending on your business, you may combine multiple types of subscriptions. You might offer a membership to grant access to discounts, but then you also offer individual products as a subscription.
Choose a Subscription App
To set up Shopify subscriptions, you'll need to use an app, such as ReCharge or Bold. These plugins integrate with Shopify so that you can turn one-off products into recurring revenue.
ReCharge and Bold are two excellent options, so you can't go wrong with either. Consider what types of products you sell and what features you may want or need to help decide.
After you select one, you can install it yourself or hire a Shopify developer to help. Then, you or your developer can set everything up so that you can make products subscriptions.
Select an Eligible Payment Gateway
Shopify offers multiple payment gateways to help you run your business. Unfortunately, not all of those gateways are compatible with Shopify subscriptions.
You'll need to use PayPal Express or Shopify Payments to handle subscription payments. While you can still use gateways like Google Pay or Apple Pay, customers can only pay that way for individual sales.
While that can limit your ability to get people to subscribe, it's important to use the right gateways. Customers may be willing to use a different payment method if they want to subscribe.
Manage Your Products
Now, you can change the settings for your products to make them subscriptions. Whether you already have products or want to add new ones, you can go into your Products page.
Choose the product you want to turn into a subscription. If you only want to sell it as a subscription, you can check the box stating that. Or you can keep it open for subscriptions and one-off purchases.
Sometimes, offering a subscription also as a one-off purchase can convince people to buy. Then, they can try the product before they commit to paying for it continuously, and you can include information on how to subscribe within the package.
Consider Offering Discounts
Another thing to consider when setting up Shopify subscriptions is if you want to offer discounts on those products. If you take a small percentage off, it can make the product seem like a better deal, so customers may be more likely to buy it.
You can also offer free shipping on subscription products, either for a short time or ongoing. Consider what makes sense for your business and customers.
Experiment with different discounts for various subscriptions to see what works and gets the most sales. Then, you can implement that strategy across your eCommerce store.
Will You Sell Shopify Subscriptions?
Shopify subscriptions can be an excellent way to grow your business and bring in more sales. Whether you sell physical products or digital products, you can sell once and make recurring income.
Then, you won't have to spend as much time or money on advertising, but you can still increase your revenue. And you can invest more back into your business to get more subscriptions.
Do you need help managing your Shopify store? Contact us to learn how we can help.