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.


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