Success with Subscriptions

Having discussed the benefits of both stamp card and points-based loyalty programs in the two previous chapters, here we present the power of the subscription model as the foundation for your loyalty program.

By combining powerful features like “unlimited” products each month and the potential to “skip the line” in store, convenience retailers can, for the first time, offer their customers the same compelling benefits and “extreme loyalty” that programs like Amazon Prime have offered for many years.

Your subscribers will love the simplicity of the program, and provided your benefits are clear, consistent, and compelling, you and your subscribers can enjoy the mutual benefits of a loyal relationship for many years.

This chapter features our top ten tips for subscription success, learned from powering loyalty programs for some of the world’s best-known convenience and car wash brands.

Top Ten Tips for Success with Subscriptions

1. Effortless and Unlimited:
A prepaid subscription program gives you the extraordinary potential for recurring revenue while also offering your customers “ultimate convenience” and the opportunity to “skip the line, convenience style.” This incredibly powerful option is proving increasingly popular for both car wash retailers and coffee retailers, and customers love the speed and simplicity it offers. By prepaying, you eliminate the need to take payment in store, so your subscribers simply need to “validate” their eligibility while collecting the product before leaving the store. This can be done with a QR code or barcode at a suitable location where it can be scanned without the need for direct contact. The second key benefit of a subscription program is the potential to offer “unlimited” coffee or car washes, or “almost unlimited,” to ensure members cannot share one subscription with multiple users without your permission.

2. Reward and Recognize New Subscribers:
Convincing customers to sign up and subscribe for a recurring payment requires a clear incentive, so we recommend using a “plan rebate” for your subscription program. For example, you can offer the first month’s subscription at a 50% discount or give them the second month totally free. This ensures that new subscribers have plenty of time to fully enjoy the satisfaction of your unlimited benefits before the full monthly payment is applied. Of course, we have built in a “quarantine period” to prevent members from leaving and returning in the hope of using your joining offer more than once. We also recommend including a generous but unexpected bonus offer for your subscribers after the first few months, and before they are at risk of canceling. This strategy is entirely focused on exciting prospects to take action and sign up to try your subscription program.

3. Create Promo Codes for Social Media or Local Distribution:
Promo codes are a powerful tool within any digital loyalty program and can be shared in a few different ways. Once you create them, your local store manager or marketing activation team can hand them out in stores to potential subscribers, ensuring they clearly explain the deal on offer if the code is activated. Of course, your deal will be inspiring (e.g., first month free) and will only be available for a limited period of time, designed to excite people to sign up immediately. Many of our customers also distribute promo codes to larger companies in the neighborhood, ensuring their staff get a better deal than individual customers could. Finally, in addition to physical distribution, your promo codes can be shared and distributed on social media platforms in ad format, targeted at non-members within any demographic or customer segment likely to be a good prospect for your business.

Trial is key to building trust, so incentivize trials to maximize the lifetime value of your subscribers.

4. Create a simple, automated payment solution that operates seamlessly:
Whether your customers prefer to pay by credit card or with a globally respected online payment solution like PayPal, your subscription program should silently auto-renew every 30 days. Choose an approach that customers trust in order to maximize conversion and completion rates. By designing a beautiful experience that does not require the user to take action after the initial setup, you will enjoy the highest possible retention rates.

5. Upsell and Delight Your Customers Even More:
Your existing subscribers are your best prospects for higher tiers, and your subscription program can drive behaviors that delight both the business and your members. By allowing users to upgrade their plan, they enjoy even more of the benefits they already love. For example, offer your Silver car wash subscribers a compelling offer, like just $5 to upgrade to Gold. If the benefits are clear, they will be happy to upgrade and invest in your best product.

6. Refer a Friend to Win a Free Month:
This strategy uses three of our favorite tools: games, referrals, and reinforcing core product awareness. With any consumer program, referrals are a powerful tool; however, it can be expensive to reward both parties with free products, especially when your program is an “unlimited” concept. By using games with free subscription months as prizes instead, you build engagement while reminding subscribers how much their loyalty is worth.

Friends are valuable, and referrals should be rewarded.

7. Proactively Prevent Churn:
As your program matures, you will learn key consumer patterns so you can take preventive action in advance. For example, certain months of the year may experience higher cancellation rates, so we recommend setting up seasonal rebates, offering lower prices for limited periods, and keeping more of your subscribers subscribed.

8. Listen and Learn:
Even if you lose a customer, make sure you do not lose the lessons they can share. By asking any customer who is leaving to complete an exit survey, you gain insight into their reason for leaving, while keeping your “restart” option clear and compelling. Win-back activity is most powerful while they still have their plan active, such as when they have opted to cancel but are still enjoying the remaining days. Make sure the restart button is easily available at all times and pay close attention to the feedback they share. By addressing key concerns, your churn rate should continually decrease.

9. Sell Multi-User Subscription Plans:
By taking care of members in their natural groups and communities, they become more loyal. Our favorite subscription programs offer friends-and-family packages for personal use and business plans for professional use. Our natural tendency to be social helps ensure long-term stickiness, so make sure your subscribers can be part of something greater than just themselves.

10. Protect Yourself from Subscription Fraud:
While people may change phones or use multiple devices, you should limit the total number of devices that can access a single subscription program using the same phone number. There should never be a situation where ten people log into the app with the same phone number and secretly share one subscription plan, but some people will try. Make sure you control the most likely fraud scenarios. Limiting access to two devices per phone number within any six-month period is one way to protect yourself from risk.