Five ways subscription improves your e-commerce

Martin Brierley
Creative Partner

How our subscription success for a leading beauty brand is relevant to your business


Subscriptions are big business: just ask Netflix, who now boast nearly 210 million customers. And businesses in sectors from consumer goods to automotive to home maintenance are getting in on the act – with revenue from subscription businesses growing around five times faster than the retail sector in the last five years.

If you’re a business that sells services or products that need replenishing, a consistent delivery, or simply needs a compelling way to package their products, a subscription service is a compelling proposition.

A subscription model can work in three ways:

  • Replenishment allows you to deliver repeated regular top ups of your product
  • Curation allows you to present products based on known customer behaviours
  • Access allows you to provide premium products or services on a VIP or discounted basis.

But whichever model is right for your business, it can deliver value in a number of ways: 


1. Predictable revenue

What business does not want to better be able to forecast its revenue? Predicted revenue allows you to model your future and better understand where investment will bring the most reward. Having a solid base of committed spend enables you to build better future products, attracting more customers and growing your business on knowledge rather than speculation. 


2. Long term customer value

While there is inevitable churn even in subscription, you will ensure long term value from your customers by delivering what they want when they want it. In short, they are more likely to stay with you as you are better able to deliver against their expectations.

3. Insights that bring you value

Having knowledge of your customers will provide data from which you can derive insights to ensure you keep them engaged with products, offers and experiences.

4. Decrease your cost of acquisition

Acquiring customers is probably one of the most costly parts of your business. Subscription allows you to reduce those costs by giving you a customer base to grow organically rather than through expensive marketing activity.

5. Your subscription model helps you scale

The combination of all the above means that you are in a better place to scale your business, better understanding your customers and their demands and marrying those with the needs of your business. You will have found the sweetspot!

If you want to see how the beauty of subscription can benefit you with learnings from a skincare market leader click on the link below.



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