Callie Hawley

Decision-making is a freedom that we, as consumers, are privileged to have. We utilize our conscious thought to make decisions for ourselves that tend to result in the purchase of a product or service that meets a current need we have. 

Ecommerce stores often face varying challenges when it comes to acquiring new customers. Whether due to a highly saturated market, or having to break through the noise to get in front of potential customers, it is imperative that you understand your customer acquisition cost (CAC) and how you can measure the value of your business utilizing this metric.

Sustainability is not just a buzzword, and it’s not just about creating environmentally friendly products.

One of the most common questions subscription merchants have is how to convert their one-time purchasers to subscribers. Though subscriptions are common and expected for consumers, there still remains the FUD factor (fear, uncertainty, and doubt). “What if I won’t be able to cancel easily and I’m locked into a long-term commitment?” “What if I don’t like the product?”

As more merchants enter the subscription market at record rates, customers are presented with a wide variety of opportunities to purchase from brands within the same vertical. While it may seem like the best way to capture their interests is to provide every option under the sun, you actually run the risk of inducing analysis paralysis. 

We are excited to bring you this year’s State of Subscription Commerce report, detailing key insights and takeaways from 2021. 

I am a consumer. In fact, I’m very likely your target customer. I am in my thirties—an “elder millennial”, if you will—a mom, a remote worker, and a frequent online shopper. I have purchased products directly from ads on Instagram, I hyper fixate on new things and tell all my friends, and I am easily influenced by products I see on social media. 

Customer loyalty isn’t just about long-term retention and lifetime value. Though those metrics are essential to measuring the health of your business, it’s imperative to look at the quality of the loyalty you’re fostering with your community. 

Upselling for ecommerce is a specific strategy that, when deployed strategically, can result in higher average order value (AOV) and stronger relationships with your existing customers. It differs from cross selling, in that it focuses on upgrading your customers to provide more value for a bigger or better version of the membership they may already have. 

Attracting a venture capitalist to invest in your subscription service is a fantastic way to inject considerable funding that will take your already budding business to the next level.

Social media, even amidst its many flaws, continues to be the most powerful source of scalable connection on this planet. Though changing at an increasingly rapid pace, with new applications springing up seemingly overnight, the main players in the space have maintained stability and have continued to change the landscape for ecommerce merchants. With these platforms being accessed by nearly 4 billion people, it's no wonder both traditional and ecommerce brands are taking to social media to connect with their customers. 

The pet industry is booming. In 2019, the Washington Post reported that 68% of households in the US owned a pet. Since the start of the pandemic, one in five more US households adopted a pet, according to a poll done by the ASPCA, which added a full 23 million to that initial number. Thankfully, the majority (about 90%) of those families still have those pets in their homes. 

American psychologist Barry Schwartz published his book, The Paradox of Choice, in 2004. He argues that collectively, consumers have been given more choice and freedom than ever before, which actually hinders them from making effective decisions. Analysis paralysis is a direct result of too many options presented, often paralyzing the consumer from purchasing your products.

The ubiquitous nature of fashion and apparel brands paves the way for the sheer popularity of clothing subscription boxes. Where many consumers enjoy the experience of shopping in-store, there are just as many that loathe the entire process. And for some that lack the confidence to own their own style, they get stuck in a rut of clothing options and are often unsure of what styles may work for them.

Recurring payments and recurring billing are the cornerstones of the ecommerce subscription business model. 

Many brands see rapid growth with their subscription businesses. Some face the challenge of canceled subscriptions among their customer base and wonder what went wrong, and how they can remedy it. Determining why a customer has canceled subscriptions is the first step in the battle, but turning those into a subscription reactivation is how you win. 

If you’re in the subscription beauty box business, you’re well aware of the boom that has taken place in the last decade. When Birchbox hit the scene in 2010, they created a new avenue for consumers to receive curated subscription boxes to their doorstep with makeup and self-care brands they likely hadn’t seen before. 

Ready or not, the countdown to the holiday season has begun! Though you may feel like this year has been a time warp and that it can’t possibly be time to start thinking of the Cyber 5 promotions—Thanksgiving, Black Friday, Small Business Saturday, Cyber Sunday, and Cyber Monday—it is upon us. In fact, as of this blog’s publishing date, we’re a mere 17 weeks away. That shakes out to about 85 business days to build your holiday promotion plan.

For ecommerce merchants, predictable revenue can often be elusive as customers purchase items one-off, and inevitably move on. Enabling subscriptions for your brand can turn one-time transactions into long-term relationships, ultimately reducing churn and increasing customer lifetime value (LTV). 

By now you have likely heard that utilizing SMS for your brand is a great way to get in front of your customers. However, many merchants are using SMS specifically for promotional messages, which can garner a 40%–60% opt-out rate. For those merchants with a subscription model, the less-risky form of SMS communications, transactional SMS (with only a 3%–6% opt-out rate), allows for increased engagement from your customers around their subscription.

We are excited to announce that our annual State of Subscription Commerce Report is officially live! This year’s report centers around the challenges and opportunities of 2020, and how merchants were able to meet their customers where they were to reach new levels of success.

Famous basketball player and coach John Wooden once said, “Flexibility is the key to stability.”For the ever-changing world of subscription commerce, it’s no different. Consumers are increasingly more interested in customizable options that work best for them. Brands are now expected to shift and change to meet the varying needs of their customers, rather than the other way around. Being flexible and giving customers options centered around product, delivery schedule, payment, and communication allow the best brands to shift to a relational commerce model. 

What do you get when you combine the contextual knowledge from our team here at Recharge with 12 of the industry’s best and brightest agency partners? 8 chapters of robust, actionable best-practices around key topics, like: 

Looking back just 10 years ago, the concept of subscription boxes or curated boxes was in its infancy. Brands originating the trend like Birchbox in 2010 scratched the surface of what would soon become a booming industry with products fitting every niche. From curated yarn, a personal favorite of mine, to entire wardrobes — subscription boxes have become the norm.

If you’re anything like me, you’re tired of hearing about the “unprecedented times” we had in 2020. Last year was the worst for many, but with everyone in their homes, unable to shop traditionally in brick & mortar stores, we saw an absolute rise of e-commerce. This has created the new playing field for merchants who are looking for ways to engage their shoppers in a highly competitive market.