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How to increase subscription retention, first time subscription conversion, and reduce churn
With this shift in business model and consumer behavior, has come a new set of needs for how brands need to retain customers through loyalty. In the past, where every purchase was non-recurring, brands had to focus on getting people back onto the site through email marketing / ads / SMS.
With subscription companies, the goals are different. The goals are three fold, to:
To do this, Bubblehouse has the premier suite of loyalty features custom tailored to optimizing the subscription retention business model, in order to incentivize people to begin and stay on their subscriptions. It’s called subscription milestones.
Milestones are ways to let customers know what benefits they receive for each month the customer stays subscribed to the product. It is similar to surprise and delight campaigns in which customers get free products in their initial orders, except here customers can visualize their surprise and delight products many months out.
Milestone Rewards are also not limited to surprise and delight free products. They include earning double points on orders, upgraded tiers, getting mystery gifts, discounted pricing on subscriptions, invitations to events, and more. All as long as they remain loyal subscribers.
Milestones are ways to let customers know what benefits they receive for each month the customer stays subscribed to the product. It is similar to surprise and delight campaigns in which customers get free products in their initial orders, except here customers can visualize their surprise and delight products many months out.
Milestone Rewards are also not limited to surprise and delight free products. They include earning double points on orders, upgraded tiers, getting mystery gifts, discounted pricing on subscriptions, invitations to events, and more. All as long as they remain loyal subscribers.
A great example of seeing milestones in action is to look at Spacegoods:
Spacegoods sells mushroom wellness products on subscriptions, and allow customers to visualize what rewards customers receive each month along the subscription journey. Some of these rewards include:
Month 2: Double points earned on order
Month 6: Free Rainbow Dust Product
Month 12: Free Mystery gift
The rewards get customers excited about all the new goodies they’ll get as long as they remain on their subscriptions, increasing retention and decreasing churn.
Spacegoods also allows customers to earn points (called Spacecoins) with what they spend on their subscriptions, which they can apply towards discounts to future subscription cycle orders. That’s what milestone 2 refers too - getting 2x points for that order’s spend.
It’s also very common that subscription brands have very similar cycle months for when customers churn, and implementing a big milestone reward on that month is a great way to capitalize on that information and reduce churn.
Combining this monthly milestone rewards program with a Welcome to the Spacegoods loyalty email informs the customer of what they’ll get if they begin their subscriptions earlier, rather than test the product with a one time purchase. This gets them onto the subscription journey sooner, and increases conversion towards subscriptions.
It also reduces churn off subscriptions, since customers know about all the future rewards they’ll miss out on if they get off the subscription. So it’s essentially making it a lot harder of a decision for a customer to just cancel a subscription and resume it when they want, since they’ll lose all the rewards progress they have made until that moment.
Learn more about milestones by booking a demo at bubblehouse.com
