Subscription programs ensure recurring revenue, guaranteeing customers visit frequently for pre-paid products.
In the ongoing exploration of loyalty programs, this article focuses on the next step in the Customer Connection Cycle: Rewarding Subscription Programs
According to a report by WestMonroe, the average U.S. consumer spends $273 per month on subscription-based services. If you haven’t already, it’s time to get in on that action.
Step 5 in the Customer Connection Cycle: Rewarding Subscription Programs
In the last several “Lessons in Loyalty” articles we explored creating and running a successful loyalty program. Recently, we have been covering rewards in these articles, specifically subscription programs.
First, we looked into loyalty program foundations with the 3 E’s (having easy, empowering, and engaging programs) and the 3 C’s (clear, compelling, and consistent promotions and communications). Then we talked about solidifying the customer relationship by giving an overview of the Customer Connection Cycle, covering recruiting members into your loyalty program, member engagement strategies, promoting the program, and finally in-store excellence. Now, we will talk about rewards.
Rewards can come in several currencies such as stamps, points, or as paid subscription programs.
We’ve written a lot about subscription programs over the years and this introductory article will get you interested to learn more.
Last summer, we published a series of articles on beverage subscriptions and have several case studies on our customers’ successful programs.
Rewarding Subscription Programs Create Extreme Loyalty
One of the hottest trends in convenience and food retailing is subscriptions. Subscriptions reward customers and transform the entire shopping experience. Beyond stamps and points rewards that customers earn, subscription programs offer customers the luxury of “unlimited” products each month.
Customers will be drawn to the program’s simplicity and irresistibly clear, consistent perks. Subscription programs are seamless, rewarding experiences that keep customers coming back. It is guaranteed recurring revenue, too!
10 Tips for Rewarding Subscription Program Success
1 |
Effortless and Unlimited A prepaid subscription offers recurring revenue and convenience, letting customers enjoy unlimited products like coffee or car washes. Redemption is streamlined with QR/barcode validation. |
2 |
Create Promo Codes Use promo codes for social media and local distribution to attract new subscribers. Offer limited-time deals to encourage immediate sign-ups. |
3 |
Reward New Subscribers Encourage sign-ups with incentives like discounted or free initial months. Prevent abuse with a quarantine period and surprise bonuses to retain subscribers. |
4 |
Upsell to Existing Subscribers Offer upgrades to higher tiers with clear benefits to increase satisfaction and revenue. |
5 |
Referral Program Implement a referral system with incentives like free months to engage subscribers and reward them for bringing in new members. |
6 |
Multi-User Plans Offer plans for groups, such as friends, family, and businesses to enhance loyalty. |
7 |
Automate Payments Ensure a seamless, automatic payment system that renews every 30 days. Use trusted payment methods to maximize retention. Be mindful of making cancellation simple to stay within potential legislative requirements. |
8 |
Prevent Churn Monitor patterns to prevent cancellations. Use seasonal rebates and limited-time offers to retain subscribers. |
9 |
Collect Feedback Use exit surveys to understand why customers leave and improve your program. Make it easy for them to restart their subscription. |
10 |
Protect Against Fraud Limit access to a subscription from multiple devices to prevent abuse, such as restricting to 2 devices per phone number every six months. |
Subscription Program Retailer Success Stories
Car wash and beverage subscription programs have grown exponentially in popularity in the U.S. convenience market, following global success at companies like Circle K.
Enmarket in Georgia proudly offers customers monthly subscription car washing options with its state-of-the-art Marketwash mobile app. The goal is clear: to provide customers with a frictionless and contactless car care solution, setting enmarket apart as a leader among the top convenience retailers.
Loop Neighborhood also offers car-conscious Californians access to a speedy, economical car wash subscription program using creative in-store and social media promotions to spread the word.
The Customer Connection Cycle Explained
This informative video explains more about the Customer Connection Cycle in this edition of the Liquid Barcodes Convenience Retail Loyalty Playbook video series.
Achieve Loyalty Excellence
Large or small, retailers have found that having a functional, sleek, easy-to-use loyalty app is the optimal way to stand above the competition.
Developing a distinctive loyalty program is essential in the dynamic landscape of convenience retail, where challenges abound. The Liquid Barcodes Convenience Retail Loyalty Playbook is your hands-on tool to make this happen.
We developed the Liquid Barcodes Customer Connection Cycle framework to illustrate how to strategically engage customers through various channels, converting them into loyal program participants. The framework uses proven loyalty mechanisms to ensure customers return sooner, becoming habitual purchasers.
Recognizing the significance of a strong customer base in driving revenue, the key principle of the Liquid Barcodes Customer Connection Cycle is simplicity, ensuring your program is easy to understand, join, earn, and redeem. It’s not just a proprietary approach; it’s our shared strategy to elevate your loyalty program and drive your business to success.
Click here to download the first few chapters within the Liquid Barcodes Convenience Loyalty Playbook.
Liquid Barcodes is a leading global loyalty and digital marketing technology partner specializing in the convenience and foodservice industries. The proprietary, cloud-based technology platform allows retailers to create and manage their digital marketing campaigns with the “customer connection cycle” process to engage, promote, and reward customers’ activities in realtime across digital and media channels.
Liquid Barcodes loyalty platform is powering loyalty programs for industry partners across several global markets, by offering unique subscription and mobile payment programs, machine learning, personalization, gamification, loyalty, and other capabilities.
Learn more about Liquid Barcodes at LiquidBarcodes.com.
About the Author
Carolyn Schnare, Chief Content Officer, Liquid Barcodes
Carolyn Schnare has been involved with the convenience retailing industry for two decades with extensive knowledge of customer engagement and marketing, sustainability, and community outreach. Before Liquid Barcodes, Schnare worked at NACS (National Association of Convenience Stores) in a variety of roles from event production to membership and most recently as Director of Strategic Initiatives and host and producer of the popular industry podcast, Convenience Matters. Schnare currently anchors the popular Future of Convenience podcast, produced by Global Convenience Store Focus media group.
