Build a Recurring Revenue Stream for your Business
You may be familiar with businesses such as Birchbox, Dollar Shave Club, Barkbox, Manpacks, Naturebox, or The Bouqs. These companies have capitalized on the subscription-based eCommerce model, and while subscription commerce definitely isn’t new, it continues to grow in popularity. There are many benefits to offering monthly or quarterly subscription-based products to your customers. For example:
Recurring Revenue – Offering subscriptions is a great way to add an additional recurring revenue stream for your business. If you have a list of subscribers that receive the same order on a consistent basis, it makes it easy to predict your future monthly online sales.
Build Loyal Customers – Since your customers will be receiving a box on a monthly or quarterly basis, you are able to develop an ongoing relationship with them. These customers also tend to be the most loyal since they are committing to recurring orders, so there is an opportunity for you, as a merchant, to turn them into brand advocates. Perhaps you may consider offering these “club members” additional benefits such as access to special pricing and/or exclusive products and sales.
Upsell opportunities – While your subscribers receive their monthly or quarterly orders, there is an opportunity for you, as the merchant, to upsell them on additional products. Companies that send product samples or a curated collection of new products, like Birchbox or Naturebox, do a great job of this. Customers are exposed to new products within their ongoing subscription orders, and can easily order more of the products through the website if they decide they want more of the samples that were sent.
What better way to offer your customers a convenient service, while generating recurring revenue for your business? As a Nexternal client, lucky for you, Subscription Management Tools are built-in to your Order Management System.
Subscription options can be easily added to any product by simply clicking on the subscriptions icon next to the product name. Here, you have the ability to create up to 10 subscription variations with options such as:
• Subscription Only – Product can only be ordered with one of the available subscription options
• Frequency – how often orders are created
• Term – length of time for which the subscription lasts (this can be days, weeks, months, years, or even indefinite)
• Discount for Subscribing – this can be a percentage, a flat discount, or a specific discount price
• Optional Sync Date – allows you to synchronize subscription orders so that they are all placed on the same day
• Optional Description Field – allows you to provide relevant information to your customers about the subscriptions options prior to purchase
As you can see, subscriptions are quick and easy to set up and a great way to build a recurring revenue stream for your business. So, if you sell anything at all that tends to be reordered, what are you waiting for? Contact your Nexternal Account Manager for assistance with setting up subscriptions in your online store today!