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The problem with this is two-fold:
<ul>
<li style="font-weight: 400;" aria-level="1">The approach is not customer centric &#8211; most product (offers) are not fit for subscription</li>
<li style="font-weight: 400;" aria-level="1">Offering subscriptions adds on a lot of complexity in terms of UX, tech and processes</li>
</ul>
To help a client determine if they should offer subscriptions, it is useful to investigate: 
Is the product (offering) fit for subscription?
Product (offers) which work well in a subscription need to check at least a few of the following points: 
Refills/Next Delivery
<ul>
<li style="font-weight: 400;" aria-level="1">Logic is simple to figure out, i.e. it is easy to understand approximately when the customer needs a new delivery.</li>
<li style="font-weight: 400;" aria-level="1">Frequencies can be kept to a few options, i.e. each customer won’t need their very own frequency.</li>
</ul>
Assortment Simplicity
<ul>
<li style="font-weight: 400;" aria-level="1">Products offered all fit well into the subscription model and the strategy is to focus on only these products (as soon as one wants to also sell XYZ, the subscription signup and refill flow risks becoming very complex).</li>
</ul>
Perceived (added) Value
<ul>
<li style="font-weight: 400;" aria-level="1">The start kit (if applicable) feels pricey and continuing to subscribe to the refills gives the customer a sense of making use of this value (e.g. razor subscriptions).</li>
<li style="font-weight: 400;" aria-level="1">By subscribing the customer gets an assortment of products worth more than the cost of the subscription (e.g. makeup boxes).</li>
</ul>
Convenience
<ul>
<li style="font-weight: 400;" aria-level="1">This product cannot be easily purchased when e.g. out shopping for groceries (e.g. contact lenses).</li>
<li style="font-weight: 400;" aria-level="1">This standard cannot be easily purchased when e.g. out shopping for groceries (e.g. Nespresso).</li>
<li style="font-weight: 400;" aria-level="1">These are things that the customer regularly runs out of and a steady refill flow makes life simpler (e.g. groceries, contact lenses).</li>
</ul>
Surprise!
<ul>
<li style="font-weight: 400;" aria-level="1">By subscribing the customer will receive things she or he didn’t expect (e.g. makeup boxes).</li>
</ul>
If the product (offer) doesn’t check a lot of the above, the risk is that customers will not understand why they should subscribe, or if subscribed, soon realize that they are paying the delivery fees for something that’s not worth it to them. If, however, a subscription model does make sense, it is important to ponder:
Is it worth taking on a lot of extra complexity to be able to offer subscriptions?
Complexity when it comes to subscriptions is related to:
UX, CRO
<ul>
<li style="font-weight: 400;" aria-level="1">If only offering subscriptions this is not an issue, the flow is built and optimized for visitors to subscribe, however, as soon as there is a choice; visitors can subscribe or purchase one-off, it becomes complicated. Even more so if there is no clear strategy as to which of these tracks is most important.</li>
<li style="font-weight: 400;" aria-level="1">Worth mentioning is also that having an optimized flow is even more important when it comes to subscriptions, as the threshold to enter payment details for recurring payments is higher than for a one of purchase;  i.e. one needs to take care to really have an optimum signup flow.</li>
<li style="font-weight: 400;" aria-level="1">In the case of having two tracks, there are two different funnels to optimize, as well as endless variations of combining the two which puts a lot of strain on CRO resources.</li>
<li style="font-weight: 400;" aria-level="1">As soon as you want to sell other products, even if they’re related to your subscription product, it will be very hard to have a simple signup flow.</li>
</ul>
Systems/Logistics
<ul>
<li style="font-weight: 400;" aria-level="1">It is likely that the current E-commerce Platform does not handle subscriptions, or handles them but poorly, a platform exchange might be needed and almost surely, there will regardless be a lot of added complexity and development needs.</li>
<li style="font-weight: 400;" aria-level="1">There will be a need to reserve stock for subscribers; this becomes especially complex if lead times are long.</li>
<li style="font-weight: 400;" aria-level="1">Purchasing also becomes more complex i there are subscribers and regular customers to consider.</li>
<li style="font-weight: 400;" aria-level="1">Not all payment types can handle subscriptions.</li>
</ul>
Marketing
<ul>
<li style="font-weight: 400;" aria-level="1">The marketing strategy cannot be dependant on Google Shopping Ads as one cannot use them for subscriptions.</li>
<li style="font-weight: 400;" aria-level="1">CRM needs to be dealt with very differently as subscribers cannot be contacted as regularly/easily as other customers; with every contact, churn can increase.</li>
</ul>
Reporting
<ul>
<li style="font-weight: 400;" aria-level="1">Subscriptions come with their own Key Performance Indicators e.g. Monthly Recurring Revenue (MRR), Annual Recurring Revenue (ARR), Average Revenue Per User (ARPU), Payback Period (PBP) and reporting will become more complex as the need to follow different business types is introduced.</li>
<li style="font-weight: 400;" aria-level="1">You will not be able to see all data in Google Analytics.</li>
</ul>
The above complexity can of course be handled, but it is important to factor it in before going down the subscription route; can the current organization handle the above, and if not, are we willing to make the needed investments and adaptations; how much do we believe in the potential of a subscription business?
Conclusion &#8211; Only offer subscriptions if:
<ul>
<li style="font-weight: 400;" aria-level="1">Your product (offer) is fit for it &#8211; especially from a customer point of view, and</li>
<li style="font-weight: 400;" aria-level="1">You can handle the complexity of dealing with “regular sales” and subscriptions, and</li>
<li style="font-weight: 400;" aria-level="1">You believe that the profit of the subscription part of the business will be substantial, or:</li>
<li style="font-weight: 400;" aria-level="1">You only plan to offer subscriptions and will focus solely on this.</li>
</ul>
<hr/>
Are you considering adding a subscription model for your e-commerce business? Feel free to get in touch and learn from the sharp minds of Omniarch, senior consultants that cater to every need in developing and growing e-commerce &#8211; letstalk@omniarch.se

Subscription Model – Is it worth it?

This article summarizes key insights from a recent webinar on customer loyalty, offering practical strategies to help businesses turn satisfied customers into loyal advocates.
<h3>Basics Matter:</h3>
Make sure your website is fast, easy to use, and has a simple checkout process. Answer customer questions clearly and offer reliable payment and shipping options. The way you package and deliver products affects how customers feel about your brand.
<h3>Satisfaction vs. Loyalty:</h3>
A happy customer is not always a loyal customer. Loyalty means they keep coming back and prefer your brand over others. To build loyalty, go beyond a single good experience. Create ongoing value and a strong relationship with your customers.
<h3>Multiple Touchpoints:</h3>
Loyal customers interact with your brand in many ways, like through social media, newsletters, and direct communication. Increase these interactions to build stronger connections with your customers.
<h3>Customer Lifetime Value (CLV):</h3>
CLV helps you understand the long-term value of a customer. Look at different segments like product type and location. Use this information to make better business decisions and target high-value customers.
<h3>Data-Driven Loyalty Programs:</h3>
Use data to find out which products or actions lead to repeat purchases and loyalty. Use AI tools to analyze buying patterns and predict which products will encourage repeat business.
<h3>Loyalty Without Discounts:</h3>
Offer exclusive content, personal shopping experiences, and relevant product recommendations. Use creative incentives like collectible items or co-branded products to keep customers engaged.
<h3>Customer Feedback:</h3>
Regularly ask for feedback through surveys, direct calls, and social media. Use this feedback to improve the customer experience and address any issues.
<h3>Loyalty as a Two-Way Street:</h3>
Show loyalty to your customers by providing excellent service and additional value. Examples include offering free repairs, test periods for products, and a premium unboxing experience.
<h3>Creative Loyalty Strategies:</h3>
Use exclusive previews, membership levels, and special bonuses to engage your customers. Collaborate with other companies to create unique products and tap into new customer bases.
<h3>Building a Community:</h3>
Create a community around your brand with engaging communication. Provide content and experiences that align with customer interests to build a strong relationship with your brand.
These points highlight the need to understand and meet customer needs on multiple levels. By implementing these strategies, businesses can turn satisfied customers into loyal advocates who return for future purchases and spread positive word-of-mouth, leading to sustained growth and success. Get in touch if you want to get down to the nitty gritty of acutally making all of the above a reality: letstalk@omniarch.se
<hr/>
Note: This article is based on a transcribed webinar about customer loyalty. AI was used to assist in refining and organizing the content.

E-commerce & Beyond: Ways to foster customer loyalty

The nature of Performance marketing is that you can spend an unlimited budget provided the spend yields a decent return. This is easy, in theory.
As an ambitious growth company your strategy needs to be highly opportunistic, manifesting at its clearest within your performance marketing approach; constantly spending to keep the engines running, right on the brink of what you can afford, fuelling your business with revenues which in turn enables you to bring in further revenue and so forth.
The difficulty with this approach lies within attribution. Attribution is neither immediate nor perfect (especially post various privacy updates, e.g. iOS 14.5). If it were, you would have no issue calibrating your spend to the exact point you deem you can afford. As it is not, you instead need to adjust it based on continuous assumptions. What does my performance look like right now and where am I heading towards, is it time to increase spend or to hold back? The more you’ve worked on your attribution model the better, but it is also important that you know the game inside out, that you have ample experience and intel about the performance marketing industry. And perhaps most important of all &#8211; that your mindset allows you to have a cowboy approach.
You will be constantly dealing with unknowns. You will never have all the facts. But unless you dare to make bold moves, despite the uncertain nature of the game, you will never reach the maximum capacity for growth. No risk, no reward. Time to put your cowboy hat on.
This is why a hyper growth company should never have a fixed marketing budget. Deciding beforehand, even on a few days basis, what the exact spend should be, contradicts the nature of utilizing performance marketing to its fullest potential. And it would be even worse to lock down a certain spend months in advance; which by extension can lead to the vital assumption error that this is money that exists, that you may allocate elsewhere, that if performance is not there you can simply take your budget and invest it in a top funnel campaign, a tool, or more resources; do that and you can say bye bye to your bottom line.
The approach is short term, and it needs to be. Again, we’re dealing with money that actually isn&#8217;t yours, that only exists when it brings you enough in return. Stressful? Absolutely. Requiring constant calibration and adaptation? Most definitely. At risk of causing confusion across the organization as to what the exact goals are and how much we’re allowed to spend to get there? Oh yes indeed. And here we come back to mindset.
To thrive in a hyper growth company with a highly opportunistic <a href="https://omniarch.se/insikt/3-ideer-for-optimering-av-beteendedata-som-lyfter-din-performance-marketing-till-nasta-niva">performance marketing</a> approach, one needs to adopt the cowboy mindset, to live it and to anchor it, ensuring that the whole business is along for the ride. This will shield the organization from becoming overly administrative, keeping unnecessary friction at bay and accepting the ups and downs whilst holding a steady gaze on the horizon.

Why a hyper growth company should never have a fixed marketing budget

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Subscription Model – Is it worth it?

E-commerce & Beyond: Ways to foster customer loyalty

Why a hyper growth company should never have a fixed marketing budget

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How we work

The Omniarchers

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