Setting Up An Ecommerce Subscription Model

New rule we should be talking about: the FTC on canceling subscriptions ⤵️ “Online subscriptions should require the same number of clicks to end as they do to sign up.” — via NPR (And, no, this doesn’t mean you should start adding clicks to the signup flow! 🤦♂️) How to avoid a big wave of churn: 1️⃣ Make sure new users see value quickly — ideally before they start paying Activated users are not only more likely to buy, they’re less likely to cancel later. And it’s not a one-and-done event; it’s important to keep onboarding users to advanced features, new use cases, integrations, collaboration capabilities, etc. 2️⃣ Target your marketing to users in your *ICP* with *intent* Quality conversions >> new signups. Audit marketing campaigns to identify ones that attract personal users, prosumers, tire kickers, etc. 3️⃣ Create loss aversion by reminding users of the premium features they’ve put to use. Canva does an amazing job of this. When I went to cancel, they reminded me I’d used their background remover feature 622 (!) times. 4️⃣ Turn price increases into a churn prevention tactic. Existing users are often getting a bargain — but they don’t realize it! Remind them that their “deal” goes away if they cancel. 5️⃣ Look beyond monthly plans. Monthly plans are fantastic for landing individual users or small teams via self-serve. But you’re usually better off with longer commitments because you have more time to impress the customer & the customer will be more motivated to implement the product. 6️⃣ Market to existing customers. Customers need to know about new features, learn best practices, and feel connected to a bigger community. They also need to grok why it’s worth spending money on the product so they can defend the business value to leadership. 7️⃣ Integrations, integrations, integrations. The more your product is embedded in a customer's workflow and systems of record, the harder you'll be to rip out. There are three aspects to this: connected data, easier user adoption and use case expansion. — Good luck out there 🙏 #churn #customersuccess #plg

7 out of 10 brands I audit struggle with one major issue. 60%+ users leave from the product page. Often due to: - just browsing / price - lack of trust in the brand - lack of clarity about the product Now, you can find the exact reason by running an on-page survey (using a tool like Hotjar). But, you can solve each of these. As a result, increase that add-to-cart rate. And overall conversions. In this example, I've made changes that help you make your product and its benefits clear and increase the conversion rate. Below are the 8 changes I recommend - 1. Have a super clear product name. This is missed more often than you realize. Show it to 5 people and see if they understand what's the product. 2. Highlight the key benefits - in short. This is most relevant for the food and personal care segment. Use icons or bullets for this - so it gets called out. 3. Make sure the price is easy to find. Ideally in the first fold and placed close to the product name. 4. Use images that create a strong first impression visually but also convey useful information like ingredients (as in this case) or benefits, features. 5. Talk about why is your product effective. People don't buy only benefits, they want to learn how it works. 6. Highlight sizes clearly. Avoid just having the measurement like (litre, kg, oz), instead give it a more human touch like 'travel pack', 'medium'. 7. Make the monthly subscribe section prominent (not only a checkbox). This section has the power to increase your monthly revenue. So make sure it highlights the benefits of subscribing. 8. Optimize the area around the add to cart with key service USPs like money back guarantee. 9. Cross-sell close to the add-to-cart CTA. That's when the user is in the purchase mindset. Make sure they can add it to cart directly from there. Most of these sound straightforward. But are often missed. Use this checklist for your PDP. Let me know in the comments how many of the 9 points it meets.

From the Journal: A bundle that Disney and Warner Bros. Discovery launched last July that offers Disney+, Hulu and Max at a discount has shown early signs of success in keeping customers subscribed, according to new data from subscription analytics firm Antenna. About 80% of the bundle’s subscribers were still paying for the service three months later, based on data for those who signed up between July and September, making it stickier than any of the services on their own. It also has a higher retention rate than Disney’s own bundles, such as its Duo pairing of Disney+ and Hulu or its Trio package of Disney+, Hulu and ESPN+. During that period, the triple-whammy bundle was even stickier than Netflix, the envy of the industry in its ability to keep customers. About 74% of people who started subscribing to Netflix between July and September were still subscribed three months later, according to Antenna. Customer retention is a major challenge in #streaming, since many consumers cancel a service once they have finished watching a particular show. Antenna found last year that most streaming services count about twice as many casual consumers—people who are either past subscribers or have signed up less than six months ago—as long-term users. The rise of the streaming bundle marks the resurgence of a familiar strategy for #entertainment: paying one price for a package of content made by different companies. “Warner and The Walt Disney Company to some degree have built their entire business around the cable bundle, so they’re very comfortable with bundling,” said Brendan Brady, Antenna’s strategy director. “We’re starting, increasingly, to see it come back.” The triple-play bundle had attracted roughly 2.2 million paid subscriptions as of Dec. 31, according to Antenna.

Most CPG brands fail at eCommerce. Not because of ads. Not because of their website. They fail because their offer stack is broken. Too many launch with: – “shop our range” – a discount code – hope that subscriptions just happen This never works. Because the offer stack IS the strategy. It dictates: – conversion – CAC payback – churn – cash flow Here’s the 7-step framework I use with good-for-you CPG brands: 1️⃣ Rule of One Focus on one hero product ↳ clarity = conversion 2️⃣ Trial → Subscription Make trial irresistible ↳ then roll into sub 3️⃣ Offer Stack = Value Exchange First order feels like a no-brainer ↳ give more than they paid for 4️⃣ Subscription Cadence Align with consumption rate ↳ quarterly often beats monthly 5️⃣ Trial → Sub Journey Educate in first 30 days ↳ stop churn before it starts 6️⃣ Economics First CAC payback in 3 months ↳ protect contribution margin 7️⃣ Offer Evolution Start simple ↳ layer in bundles and seasonals later Examples: Everyday Dose doesn’t just sell coffee. They include a frother + app. The trial feels abundant. That creates stickiness. Purdy & Figg doesn’t default to monthly. They ship cleaning products every 90 days. Higher AOV. Lower churn. Better cash flow. So ask yourself: Is your offer stack doing the heavy lifting? Or are you relying on ads to fix a packaging problem?

ARR gets thrown around in every SaaS conversation 📊 But ask someone to explain why a 120% Net Revenue Retention rate makes investors salivate, and you'll get blank stares. Most people know the acronym. Few understand why it's the metric that determines whether you get funded or not. Annual Recurring Revenue represents the predictable revenue a company expects to receive annually from its subscription customers. It's the lifeblood of SaaS businesses and the key metric for measuring sustainable growth. ➡️ WHAT MAKES ARR SPECIAL ARR focuses on three core characteristics. Predictable revenue streams give you visibility into future cash flows. Recurring subscriptions create steady income you can count on. Most importantly, ARR excludes one time fees, giving you a clean view of your sustainable business foundation. ➡️ WHY INVESTORS GET EXCITED ABOUT ARR Four main reasons drive investor interest in your ARR metrics. Valuation becomes straightforward with predictable revenue. Higher ARR multiples translate directly to higher company valuations. Stickiness indicates customer loyalty and product market fit. When customers stick around, your business becomes more valuable and less risky. Predictability gives investors confidence in your business model. Recurring revenue provides visibility into future cash flows. Scalability shows potential for growth with existing customers. Each customer represents an opportunity to expand revenue without acquisition costs. ➡️ THE FOUR MOVEMENTS OF ARR Your ARR changes through four distinct customer behaviors each month. NEW subscribers bring fresh recurring revenue streams. This represents your acquisition engine working effectively. CHURN happens when customers cancel subscriptions entirely. You lose their complete recurring revenue contribution. EXPANSION occurs when customers upgrade plans, add users, or purchase additional features. This increases revenue per customer without acquisition costs. CONTRACTION takes place when customers downgrade plans or reduce usage. This decreases recurring revenue from existing relationships. ➡️ CALCULATING YOUR ARR GROWTH Opening ARR + New ARR - Churn ARR + Expansion ARR - Contraction ARR = Ending ARR Track these components monthly to understand your growth trajectory and identify improvement areas. ➡️ RELATED METRICS THAT MATTER Monthly Recurring Revenue provides granular tracking for short term trends. Net Revenue Retention measures revenue retained from existing customers over time. Customer Acquisition Cost shows how much you spend to acquire each new customer. Customer Lifetime Value represents total expected revenue from each customer relationship. ARR Multiple shows how SaaS companies typically trade in the market. === Understanding ARR gives you the foundation for building a strong SaaS financial model that investors will appreciate. What ARR challenges are you facing in your business? Join the discussion below 👇

📣 The Subscribe & Save Dashboard Update We’ve All Been Waiting For – It’s Finally Here! Understanding your Subscribe & Save (SnS) insights is crucial for scaling your Amazon business. SnS allows brands to build customer loyalty and drive recurring revenue, but managing subscriber retention and coupon performance can make or break this strategy. Knowing how coupons impact subscription behavior and tracking how many subscribers cancel after their first delivery is key to optimizing your efforts. Amazon has just released an update that will make this process much easier! Finally, a Subscribe & Save Dashboard that offers real insights into subscription performance. Here’s what’s new in the dashboard: ● Enhanced filters with more granular date ranges (daily, weekly, monthly) ● SnS sales and activations mapped against last year’s data to easily track growth trends ● Sales by Deliveries: A pie chart showing subscriptions with 2+ deliveries, canceled after 1 delivery, and active subscriptions with just one delivery ● Subscriber retention tracking ● Average Sales per Subscriber vs. Non-Subscriber ● Average Reorders per Subscriber vs. Non-Subscriber ● Coupon Performance: Coupon sales penetration and share of coupon-driven subscriptions ● Subscriptions inventory planning These are some fantastic updates that we’ve been eagerly awaiting for a long time! Stay tuned as we dive deeper into each of these new features in future posts.

Stop guessing your way to a higher AOV.   𝗕𝘂𝗻𝗱𝗹𝗶𝗻𝗴 𝗱𝗼𝗻𝗲 𝗿𝗶𝗴𝗵𝘁 = 𝗽𝗿𝗼𝗳𝗶𝘁 𝘂𝗽, 𝗰𝗼𝗺𝗽𝗹𝗲𝘅𝗶𝘁𝘆 𝗱𝗼𝘄𝗻. 👇 𝗛𝗲𝗿𝗲’𝘀 𝘁𝗵𝗲 𝗯𝗿𝘂𝘁𝗮𝗹 𝘁𝗿𝘂𝘁𝗵:  Most brands 𝘀𝗹𝗮𝗽 𝗯𝘂𝗻𝗱𝗹𝗲𝘀 𝗼𝗻 𝗮 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗽𝗮𝗴𝗲 and expect magic.   But random pairings ≠ real revenue. 𝗪𝗵𝗮𝘁 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝘄𝗼𝗿𝗸𝘀?   → 𝗗𝗮𝘁𝗮-𝗱𝗿𝗶𝘃𝗲𝗻 𝗰𝗼𝗺𝗯𝗼𝘀: Use your purchase data to see what customers *actually* buy together.   → 𝗖𝗹𝗲𝗮𝗿 𝘃𝗮𝗹𝘂𝗲: Show the savings/upside front and center—don't hide it in fine print.   → 𝗙𝗿𝗶𝗰𝘁𝗶𝗼𝗻𝗹𝗲𝘀𝘀 𝗲𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲: One click to add the bundle, zero confusion. We rolled this out for a client.   𝗥𝗲𝘀𝘂𝗹𝘁: 77% of customers chose the bundle. Tens of thousands in extra monthly revenue—see image for the real numbers. 𝗧𝗵𝗲 𝗳𝗼𝗿𝗺𝘂𝗹𝗮:   ✅ Know what your customers want.   ✅ Make it simple.   ✅ Communicate the benefit. Bundles aren’t “set and forget”—they’re a conversion machine if you get the details right. Are you still bundling by guesswork?   Drop a “💰” if you want to see the data-led approach that works. #eCommerce #AOV #CRO #ProductStrategy

Maximizing Revenue with Strategic Product Bundling Many eCommerce businesses underutilize the potential of product bundling strategies. By addressing these five critical oversights, you can transform your approach and drive significant results. 1. Strategic Product Combinations vs. Individual Sales * Challenge: Relying solely on single-item transactions limits revenue potential and customer value. * Solution: * Develop complementary product bundles (e.g., smartphone + protective case + charging accessories) * Implement strategic bundle discounting to incentivize higher average order values 2. Value-Based Bundle Pricing * Challenge: Improperly priced bundles can diminish perceived value or create customer hesitation. * Solution: * Conduct competitive analysis to establish optimal price points * Clearly communicate the value proposition by displaying comparative savings 3. Inventory Optimization * Challenge: Slow-moving inventory represents tied-up capital and lost opportunity. * Solution: * Pair high-demand products with slower-moving inventory (e.g., bestselling outerwear with seasonal accessories) * Leverage bundles as a discovery mechanism for introducing newer or less-familiar products 4. Customer-Centric Bundling * Challenge: Bundles that ignore specific customer needs fail to resonate in the marketplace. * Solution: * Design bundles around specific use cases (e.g., "Professional Home Office Bundle") * Emphasize convenience and comprehensive solutions in your value proposition 5. Strategic Bundle Marketing * Challenge: Even well-designed bundles require visibility to generate sales. * Solution: * Implement dedicated promotional strategies across key touchpoints * Create urgency through limited-time bundle offers and seasonal promotions Effective product bundling represents a proven strategy for increasing average order value, optimizing inventory, and enhancing customer satisfaction through comprehensive solutions. What bundle opportunities might you be overlooking in your product catalog? Share your thoughts in the comments.

What is more important to revenue and bottom-line growth? Customer acquisition or customer retention? The answer: customer retention! Specifically, customer retention through value maximization! 🎯 In eCommerce, maximizing the value of each transaction is key - for both the brand and the customer. ⛳️ And, one of the most effective ways to maximize value, is  Product Bundling, i.e bundling complimentary or relevant products together, to be sold as one! Product bundling not only increases the Average Order Value (AOV) of a transaction but also increases the internalized relevancy of a brand to a consumer, driving repeat store visits and purchases. This is how product bundling can be effectively offered in eCommerce: 🔥 Best-Seller Bundles → Sell More of What Already Works Apple does this perfectly. The iPhone alone is great, but when it is bundled with AirPods and AppleCare, customers spend more, without much hesitation. 💡 Complementary Bundles → Pairing Products That Make Sense Skincare brands like @DrunkElephant offer routine-based bundles—cleanser, serum, and moisturizer—boosting both AOV and customer experience. 🎯 Subscription Bundles → Locking in Repeat Revenue Brands like @Huel and @AthleticGreens bundle their products into discounted subscription plans, increasing retention while ensuring customers never run out of their favorite products. I’ve seen firsthand how brands using the Appstle Bundles & Discounts app grow their AOV by 30-50%—without slashing margins! Bundling isn’t just about selling more; it’s about making buying easier for your customers. And when you do that, they buy more, stay longer, and keep coming back. 🚀 If you want to boost your eCommerce sales and AOV in 2025, start bundling your products now. #Appstle #customerretention #walletshare #subscriptions #memberships #loyalty #bundling #shopify #shopifyplus

12 Key Strategies for Creating Unbeatable Offer Your Clients Can't Refuse When creating an irresistible offer, focus on precision and value: → Understand Your Client’s Pain Points* ↳ Dive into their specific challenges and needs  → Highlight Unique Benefits ↳ Showcase what sets your offer apart from competitors  → Create a Compelling Value Proposition  ↳ Clearly articulate the value and benefits of your offer  → Offer Limited-Time Incentives  ↳ Add urgency with special discounts or bonuses  → Include Social Proof and Testimonials ↳ Build credibility with real client success stories  → Customize Your Offer ↳ Tailor your proposal to align with the client's specific situation  → Provide Clear and Transparent Pricing ↳ Avoid hidden costs and be upfront about all charges  → Showcase ROI and Results   ↳ Demonstrate the tangible benefits and expected outcomes  → Offer a Risk-Free Guarantee ↳ Reduce hesitations with a satisfaction guarantee or trial  → Simplify the Process ↳ Make it easy for clients to accept your offer with a straightforward process  → Follow Up Strategically ↳ Reach out with a personalized follow-up to address any concerns  → Solicit Feedback and Adjust  ↳ Be open to feedback and refine your offer based on client responses  These steps will help you craft an offer that stands out and meets your clients’ needs. P.S. Ready to create an offer they can’t refuse? Let’s discuss how we can make it happen.