Here’s one way of retaining your digital customer?

Subscription-based eCommerce is a business model that allows customers to subscribe to products or services they need on a recurring basis.

For online retailers, subscription services provide customer retention, predictable revenue, and opportunity to use up-selling and cross-selling creating trust & loyalty with the brand that equates to high retention rates.

Data taken from McKinsey resource quoted, the subscription e-commerce market has grown by more than 100% percent a year over the past five years, with the largest retailers generating more than $2.6B in sales in 2016, up from $57.0M in 2011.

Research also quotes over 50% of ecommerce service subscribers have more than one active subscription.

Even though Retailers spend enormous money on customer acquisition, as per the research data, only 14.77% of all eCommerce customers are returning shoppers.

Data from Marketing Metrics also shows Retailers have a 60-70% chance of selling to an existing customer, versus 5-20% of selling to a new prospect.

The Subscription Trade Association (SUBTA) predicts that by 2023, 75% of direct-to-consumer brands will offer subscription services.

Hence, Retailers should consider adding subscription services to their strategy to get all the above benefits.

References:
www.forbes.com/sites/louiscolumbus/2018/03/04/the-state-of-the-subscription-economy-2018/?sh=7154901953ef
www.business2community.com/ecommerce/digital-retail-ecommerce-marketing-trends-changing-game-2016-beyond-01637444
subta.com/the-new-e-commerce-transformation-is-subscription-based-and-coming-to-your-door/
www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/thinking-inside-the-subscription-box-new-research-on-ecommerce-consumers