How subscriptions can strengthen loyalty & customer relationships

Subscription models create more opportunities than ever to turn customers into long term advocates. Each positive experience increases the likelihood of referrals and helps build a more engaged customer base.

In this article, we explore how subscriptions, loyalty schemes and customer service work together, and where retailers can create more value across the customer lifecycle.

Retailers should look more closely at the role customer service plays within their subscription strategy.If you have invested in self service subscription management, how can you maximise its impact and deliver additional value?

Subscription platforms create opportunities to engage customers beyond the product itself.

For example, you can provide guidance, tips or advice on how to get more value from products. You could even implement video tutorials or opportunities to showcase additional usage of specific items.

This doesn't need to be complex or expensive. Even a simple QR code on packaging can drive customers back to your website and content.

This quiet persuasion could be crucial in creating a community between yourself and your audiences, where content and people align to create long-lasting advocacy.

How loyalty schemes support subscription growth

Loyalty schemes are widely used to encourage repeat purchases and ongoing engagement.

These loyalty schemes provide retailers with a wide range of data to personalise the shopping experience further, from special discount codes to mark a customer's birthday to tiered loyalty plans recognising long-time subscribers.

In a more cost conscious environment, budgets remain under pressure. As a result, customers will be looking to benefit from subscription boxes that offer exceptional value for money.

This represents a stronger chance for retailers to look closely at their loyalty programmes to identify how they can continue to offer exceptional customer service and a strong subscription offering.

However, not all loyalty schemes deliver the same impact. The difference lies in how well they reward existing customers, rather than just incentivising new ones.

Within our research, a quarter of respondents told us that they believe the chance to earn loyalty points is an important feature of a subscription service. Currently, this is not a default option among retailers.

With the right platform in place, offering a loyalty programme is a quick and easy way to reward shoppers for their custom. Some retailers have begun offering tiered loyalty schemes that recognise long-term supporters, and we believe this is increasingly important.

Shoppers often become frustrated when new customers receive better incentives than existing subscribers.

So as part of your customer relations strategy, it's important to look at how you can continuously reward existing subscribers.

Keeping your current audience base happy will not only reduce customer churn but also extend those customers' lifetime value and reduce your acquisition costs.

How to win back former subscribers

A final point of consideration is to look at what communication you have with previous subscribers.

We've identified that a customer could choose to cancel their subscription at any time for several reasons. Former subscribers should not be treated as lost customers.

There are numerous ways you can use technology to reach out to previous customers, encouraging them to sign up again. From emails to push notifications, your approach to former subscribers should focus on why they chose to drop out.

For example, if it were for budgetary reasons, could you highlight your value for money?

Automation is making this easy to manage. The challenge for your digital marketing teams is finding the right message that entices former customers to come back to you.

Explore more on subscription commerce

For more on subscription models, download our latest whitepaper, The Future of Subscription Commerce is up for Renewal, can be downloaded in full, for free.

We partnered with YouGov to survey thousands of UK consumers to try and discover how retailers can deliver the subscription commerce package that their customers are looking for.